Executive Summary

The World is always change, the demand of market different day by day. Toyota Motor
Corporation (TMC) has been developing sharply to meet the demands of their market.

With the information was collected from TMC, this report provide the company’s
strategy, mission, vision, market that has been assisting TMC was be a success global
organization.

The report also has developed the marketing tools for TMC’s business in the future
involves:
• Toyota’s new long and short term objectives;
• Toyota Auris Hybrid new campaign for Euro market.

The details of these tools are listed within this report and if it was applied, I think
company will be more successful to improve and maintain the business at highest positioning.

1
Table of Contents
Executive Summary...............................................................................................1

Introduction............................................................................................................3

1.1 Company Overview:..........................................................................................4

1.2 Company Market:..............................................................................................4

1.3 Company Financial:..........................................................................................5

1.4 Vision and Mission ............................................................................................6

1.5 Toyota’s Strategy..............................................................................................6

1.6 Toyota SWOT Analysis ......................................................................................7

1.7 Toyota’s Activities in past year and comments from management:..................9

2 Toyota’s New Objectives Improvement:............................................................9

2.1 Competitive advantage:..................................................................................10

2.2 Product Positioning:.........................................................................................10

3 Toyota Auris Hybrid new campaign:...............................................................11

3.1 Product: .........................................................................................................11

3.2 Place:...............................................................................................................12

3.3 Price:...............................................................................................................12

3.4 Promotion:.......................................................................................................12

3.5 Weaknesses of product:..................................................................................13

3.6 Threats of product:.........................................................................................13

Conclusion.............................................................................................................13

References.............................................................................................................14

2
Introduction
The automobile can help people to travel and transport goods farther and faster, and has
opened wider market areas for business and commerce. The number of vehicle in the world is
increasing sharply in few nearly year. It is leading to occurring of many environment factors
such as CO2 emission, transport traffic. Therefore, development and increase supplying the
environment friendly and economic effective products is the main direction of automobile
companies.

The purpose of this report is providing the main activities of Toyota Motor Corporation
in the past few years and its future plan that shows how the company running its business to meet
the demands of market in the past and in the future.

3
Company Analysis

1.1 Company Overview:

Established on August 28th, 1937 in Japan, Toyota Motor Corporation (TMC) is one of the
largest automotive manufacturers both by production and sales. Toyota manufactures, sells,
leases, and repairs passenger cars, trucks, buses, and related parts worldwide. Besides its own 33
plants and manufacturing subsidiaries in Japan, Toyota has manufacturing facilities in 26 other
locations, which produce Lexus- and Toyota-brand vehicles and components. Toyota's
diversified operations include financial services, telecommunications, prefabricated housing and
leisure boats, with the automotive business accounting for more than 90 % of the company's total
sales. This company has grown to employ over 316,121employees worldwide.

1.2 Company Market:

Toyota has become a global company, with 51 manufacturing companies in 26 countries. Their
vehicles are sold in more than 170 countries. Toyota’s primary markets are Japan, North
America, Europe and Asia.

From April 2009 to March 2010 vehicle sale result in Japan is 2,163,000 units and oversea is
5,074,000 units. Vehicles sold by Daihatsu and Hino are included in the vehicle unit sales figures
set forth below.

Toyota has high percentage of market share in their primary markets. In Japan, which is the
center of its global operations, Toyota has maintained its position as the largest automobile
manufacturer for more than 40 years. It held a domestic market share on a retail basis of 45.8%
in fiscal 2007, 45.6% in fiscal 2008 and 46.0% in fiscal 2009. The Toyota’s market share is
showed in the figures below:

4
1.3 Company Financial:

The following table shows the company spends its time and money from 2006 to 2010:

5
The total number of Toyota employees was 320,590 at March 31, 2010,320,808 at March 31,
2009 and 316,121 at March 31, 2008.

In 2009, with the bad economic climate Toyota has loss 436,937 million yen. However, in 2010
it has made profit by 209,456 million yen.

1.4 Vision and Mission

Mission of Toyota is to provide safe & sound journey. Toyota is developing various new
technologies from the perspective of energy saving and diversifying energy sources.
Environment has been first and most important issue in priorities of Toyota and working toward
creating a prosperous society and clean world.

Vision is to be the most respected and successful enterprise, delighting customers with a
wide range of products and solutions in the automobile industry with the best people and the best
technology.

1.5 Toyota’s Strategy

Toyota’s corporate goal is to achieve continuous growth and enhance its corporate value by
contributing to society and gaining customers’ enduring trust through global operations and
through products reflecting Toyota’s advanced technology that target the local demand in each
market.

In order to achieve this corporate goal, Toyota strives to further enhance its technology, supply
capability and marketing, supported by improvements in quality control, strengthening of cost-
competitiveness and personnel development.

In particular, Toyota has been dedicated to addressing environmental issues, and as

environmental awareness continues to grow in the market, Toyota strives to further improve
technology, including its unique hybrid technology, in order to develop environmentally-friendly
products.

Toyota current positioning strategy:

• Toyota does business in more than 170 countries globally; that’s more countries than
McDonald’s with restaurants in over 100 countries. (2009) (Toyota facts)
• Toyota ranked 3rd on the “World’s Most Admired” list, behind only Apple and
Berkshire Hathaway. (Feb. 27, 2009)
• Toyota Motor Sales became the best-selling retail automaker in the U.S. (2009)
(Toyota facts)

6
 • Toyota has more hybrids on the road than all other automakers. (TMS news release
on New Product Leadership, Sept. 21, 2009. Based on R.L. Polk & Co. U.S.
Vehicles in Operation as of Jan. 1, 2009.) (Toyota facts)
• Toyota was first in five of the 10 vehicle categories in Consumer Reports’ annual
rankings, the most of any automaker: Toyota Highlander, Prius, RAV4 and Sienna,
and Lexus LS 460. (April 2009) (Toyota facts)
• Toyota has the highest owner loyalty of any automaker. Toyota ranked #1 by having
the greatest percentage of households return to purchase or lease another Toyota
vehicle. (R.L. Polk & Co., Jan. 13, 2010)

1.6 Toyota SWOT Analysis

Strengths: Weaknesses:

Strong Financial. The automotive operations Toyota is a wholly owned overseas firm. Its
segment is Toyota’s largest operating segmentCEO lives in Japan, who’s not yet completely
by net revenues. Net revenue for the knowledgeable about global business. He
automotive segment in 2009 is ¥5,612.6
billion. might be great when it comes to doing business
in his own country, but he’s not as handy when
Having high commitment and truly believe in it comes to ethics, marketing, management, etc
their company. Toyota is known to be one of abroad.
many companies that are committed to
building a strong relationship with its Loss control quality of product. It leads to the
employees. Everything is based on trust and large numbers of recall vehicles.
commitment. The company believes that it
grows as the employees grow. One way to The large numbers of product are made in
make this happen is by giving education as a
Japan which place has high cost.
motivation to its employees.
It is not successful in the European market. It
Toyota is also known for its TPS (Toyota
Production System) program. This program can’t seem to provide what’s demanded by the
keeps the company to stand strong when it European market which seeks smaller cars and
comes to efficiency compare to its competitors. high performance vehicles. Neither of which
After all these years, Toyota has done a really are Toyota’s forte.
good job in eliminating waste and time in
making its products. Greatly affected by economic and political
conditions of markets in the US and in Japan.
The company has been doing well when it Toyota markets most of its products in those
comes to building strong relationships with its markets. Perhaps that is why the company is
customers. The company is known to satisfy beginning to shift its attentions to the emerging
its customers. Knowing the kind of demand Chinese market.
that comes from the customers is another
strength, which the company holds. By having Exchange rates. Movements in exchange rates
this information, the company is then able to

7
create cars that can satisfy its customers.
could see the already narrow margins in the car
The company holds three brands of cars, all market being reduced.
manufactures by Toyota. These are Toyota
itself, Scion and Lexus. All these brands are
targeted for different social classes, which
makes it possible for the company to offer
great vehicles for all people.
The company holds environment friendly
products: Hybrid, electric vehicles.
Opportunities:
Lexus and Toyota now have a reputation for
manufacturing environmentally friendly
vehicles. Lexus has RX 400h hybrid, and
Toyota has it Prius. Both are based upon
advance technologies developed by the
organization. Rocketing oil prices have seen
sales of the new hybrid vehicles increase.
Toyota has also sold on its technology to other
motor manufacturers, for example Ford has
bought into the technology for its new Explorer
SUV Hybrid. Such moves can only firm up
Toyota's interest and investment in hybrid
R&D.
The development of new innovative products
as well as increasing technologies which can
be used to create different models to suit the
changes in consumer tastes.
The company seems to be doing well in
adjusting and fulfilling customers demand.
Doing everything to take all the opportunities
to increase sales and building better
relationship with the customers through its
products. Toyota has been making innovative
and high tech cars for so many years, being the
first from its competitors to see this kind of
market demand.
The development of emerging markets such as
China, India, Brazil and developing countries
as Indonesia, Vietnam.
Threats:
Product recalls are always a problem for
vehicle manufacturers. In 2009, Toyota issued
a recall affecting 3.8 million Toyota and Lexus
vehicles.
The developing of competitors: Honda, Nissan,
GM, Hyundai. Moreover, soon Toyota will
also have to compete with China, which has
announced that it will begin exporting vehicles
in 2010. Surely, China is known to be able to
produce cheaper products. Hence, this will
come to a threat in price competition, which
Toyota has to face in the near future.
Increasing raw material prices leading to
decrease profit margins and create low
competition.
Enhanced environmental and energy
sensitivity. Changes in the laws, regulations
and government policies in the markets in
which Toyota operates that affect its
automotive operations, particularly laws,
regulations and policies relating to vehicle
safety including recalls, trade, environmental
protection, vehicle emissions and vehicle fuel
economy, as well as changes in laws,
regulations and government policies that affect
Toyota’s other operations, including the
outcome of current and future litigation and
other legal proceedings.
8
1.7 Toyota’s Activities in past year and comments from management:

“Without focusing on environmental, energy and safety measures there can be no future for
motor vehicles”. This is a comment of Toyota’s President Katsuaki Watanabe.

Toyota’s automobile ownership exceeds 1 billion vehicles in 2010 and will likely reach 1.5
billion vehicles in 2020. Toyota is very much aware of the tremendous impact this will have on
the environment and human safety.

For this purpose, Toyota is concentrating its efforts on improving fuel economy by making cars
smaller and lighter, while enhancing power efficiency. Toyota announced a business partnership
with Tesla Motors for developing electric vehicle.

Chief Executive Officer Akio Toyoda said Toyota would try to be the world leader in building
environmentally conscious vehicles and touted the company's cooperation with Tesla Motors
Inc. Toyota is building a RAV4 electric car using Tesla battery technology. (Mike Ramsey,
2010)
Toyota has been developing too many safety systems such as: ABS (anti-lock brake system)
VSC (Vehicle Stability Control) and VDIM (Vehicle Dynamics Integrated Management)
systems Toyota’s Pre-crash Safety System. Toyota also offers a training program throughout the
year at the TOYOTA Safety Education Center “mobilitas” completed in 2005 inside Fuji
Speedway in Shizuoka Prefecture.

Toyota is expanding its sustainable plant activities worldwide, beginning with manufacturing
facilities in the United States, the United Kingdom, France and Thailand. In August 2008, The
Ban Pho Plant of Toyota Motor Thailand Co., Ltd. conducted one of the largest-ever tree-
planting events in Thailand with about 14,000 people planting 100,000 trees.

2 Toyota’s New Objectives Improvement:

With fuel price increasing, people are not buying large cars in the numbers they used to. Small
cars consume much less fuel, and are better for the environment. For this reason, Toyota should
develop new objectives for assisting to continue to do business in this ‘new environment”. The
new objectives can be:

Long term objectives:

1) Sale Hybrid cars at all countries which Toyota doing business in 2020.
2) Promote the development of Toyota’s eco-cars with fuel effective and safety.

Short term objectives:

1) Increase Hybrid cars sales 100% in 2011 by 2010.

9
 2) Increase 2 Hybrid production factories and 2 R&D centers in oversea.

The new objectives are consistent with the forecasted needs of the business by its competitive
advantage and positioning.

2.1 Competitive advantage:

TMC has been successful in launching and supplying the Hybrid car market. In December 1997,
TMC launched the Toyota "Prius"—the world's first mass-produced hybrid vehicle. The use of
the Toyota hybrid system was subsequently expanded to such vehicles as minivans, SUVs and
rear-wheel-drive sedans. In 2009, TMC broadened its range of hybrid vehicles further with the
launch of the third-generation Prius, as well as two other dedicated hybrid vehicles, the Lexus
"HS250h" and the Toyota "Sai". Currently, nine TMC-produced hybrid passenger vehicle
models and three hybrid commercial vehicle models are sold in Japan. (Toyota, 2010)

Outside Japan, TMC has eight hybrid passenger vehicle models are sold in approximately 80
countries and regions, with cumulative overseas sales having topped 1.68 million units. TMC is
committed to augmenting this lineup even further and increasing the number of countries and
regions in which it sells hybrid vehicles. (Toyota, 2010)

With new type of Hybrid vehicles, TMC has survey with 267 new Prius owners. Its result is:
• Completely satisfied buyers on exterior styling: 52%.
• Completely satisfied buyers on interior styling: 62%, roominess 73%.
• Satisfaction is very high on environmental friendliness with 91% of buyers
completely satisfied.
• Completely satisfied buyers on fuel economy with 64%, quietness when driving with
67%, body workmanship & finish with 71%, no squeaks and rattles with 67%.
(Toyota-euro)

2.2 Product Positioning:

Hybrid cars are the future of the auto industry globally, and the TMC has achieved the 1 million
car milestone of hybrid vehicles in Japan in 2010, which makes up a large proportion of the
global figure of 2.88 million.

Toyota Motor Corp. is No. 1 among automakers for patent applications and awards in alternative
power technology. Toyota now holds 16% of all patents and applications in the field globally.
(Automotive News, Nov. 2, 2009)

TMC, the industry leader in hybrid vehicles with 13 years on the road, keeps a sharp focus on
conventional engine for obvious reasons: the more efficient the gasoline-powered component of

10
the hybrid, the more efficient the hybrid. (COLLEEN BARRY and GREG KELLER (AP) – Oct
1, 2010)

With the new technology of air flow for better efficiency, Toyota Prius just spends 89 g/km
compare with Fiat’ 92 grams of carbon emissions per kilometer and the Fiesta with Ford's
Econetic technology produces 98 g/km. (COLLEEN BARRY and GREG KELLER (AP) – Oct
1, 2010)

These objectives also are ethical and legal by reasons:

• Increasing environment friendly product;

• Reducing CO2 emissions;
• Increase the local factories leading to reducing the traffic, emission caused by
transportation and logistics.
• Increasing of jobs for local employees.

TMC has enough financial to implement above subject. Toyota annually spends nearly $9 billion
(more than $1 million an hour), on research and development to develop the cars and technologies of
the future. Toyota spends more on R&D than any company in the world. (Toyota facts_3)

3 Toyota Auris Hybrid new campaign:

In 2010 TMC has introduced Toyota Auris Hybrid vehicle for sale outside Japan. The advantages
and the ‘character’ of the product are represented of four elements: product, price, place,
promotion.

3.1 Product:

Toyota Auris Hybrid available in two grades – T4and T Spirit with strengths of product are:
• First full hybrid model in the European C-segment
• Toyota Auris Hybrid: fuel economy starting from 3.8l/100 km
• The Toyota Auris Hybrid emits at least 89g CO2/km
• Zero-rated for UK road tax (Vehicle Excise Duty) (carsession,2010)

Toyota Auris Hybrid has been designed specifically for the European market. With using in the
new model go beyond exceptional fuel economy and low CO2 emissions. Therefore, it is user-
friendly and delivers a quiet, comfortable and stress-free drive unlike anything else in the
segment.

11
3.2 Place:

Styled in Europe, the Auris is a completely new model that replaces the long-running Corolla
and is built in the UK. European buyers like bold design, and aside from a chunkier, Yaris-style
nose, the proportions and profile are barely changed from the Corolla's.

With the stringent of environment protection regulations in European, Auris Hybrid is really to
create as the leader of friendly product. TMC hope that Auris Hybrid will meet demand of
customers in this market who want to care their living environment more and more by using the
green products.

Auris Hybrid not only provides a service that will help reduce the city’s carbon emissions, it also
helps the owner reduce their running cost by providing a fuel-efficient transportation with
3.8l/100km.

With the ‘pull strategy’, TMC get the product to customers; give them the perfect choose in the
economic downtown period in European.

3.3 Price:
TMC has clear understanding of the situation of Euro economic climate and it key
target market (young people and other environment, economic effective and high
technology caring buyers), and has decided pricing strategy and advertising
campaign to push the customer buy this product with best address their needs and the
positioning of Toyota Auris Hybrid
The vehicle has a starting price of EUR 22,150 (UK) and its running cost is low.

3.4 Promotion:

Website and showroom are two good address which proving full information such as product
feature, benefit, safety feature and getting customer’s orders or feedbacks. Website is the
cheapest tool and working 24 hours in 7 days per week.

As the pull strategy, the interest in and demand for product even before it reaches the stores are
made possible because social medial. Using a one-page of spots magazine ad and 30-second
television ad to provides much importance information at 6 months before sales.

Using the sales personnel and test-drive as effective tools to persuade the customers and provide
more information such as service after sales, sales assistance and to encourage orders.

As the push strategy, TMC spent 5% amount of its marketing resource on maintaining
relationship with its distributors and provide the action plans to distributors such as discount 20%
service fees, expand warranty time more 6 months and reward the excellent distributor of the
year.

12
The KPI of promotion is proving a new eco-product to Euro market, increasing sales to 400,000
units in next year to assist the TMC achieves the sales objective.

As the ethical and legal promotion, this campaign assists the number of green product users will
increase, the reaffirming people’s acceptance of hybrid technology worldwide

3.5 Weaknesses of product:

• High price.
• New product so difficult to change customer’s behavior.
TMC should promote advertising campaign to show the benefits of product and
increase the customer’s awareness about eco-Toyota Auris Hybrid.

3.6 Threats of product:

• High competitive. (Nissan, Audi, Honda, Ford)
• Economic downtown.
TMC should put in its best efforts to manufacture quality cars designed for its
customers.

Conclusion
TMC has created a new dimension in the field of automobile business that Toyota so cares about
their customer and quality, that's why Toyota is very famous, and made its brand name. Toyota
always research and develop to improve quality, enhance efficiency, minimize cost and increase
productivity.

With new objectives and activities plan above, TMC believe that they really to meet the market
demand by supplying the new type of eco-product at the moment and improvement to expand
number of green cars will be available in the years ahead.

13
 References
Toyota, 2010. Annual report 2010. Available from:
http://www.toyota.co.jp/en/ir/library/sec/image/20-F_201003_final.pdf. [Accessed: October 6,
2010]

Toyota, 2010. Financial highlights, [Online]. Availible from:

http://www.toyota.co.jp/en/ir/financial/high-light.html. [Accessed: October 6, 2010]

Toyota-euro.2110. Sales & Marketing /After Sales, [Online]. Availible from: www.toyota-
europe.com/images/Chapter_6.pdf. [Accessed: October 6, 2010]

Toyota, August 25, 2010. Sales in Japan of TMC Hybrids Top 1 Million Units, [Online].
Availible from: http://www2.toyota.co.jp/en/news/10/08/0805.html. [Accessed: October 6,
2010]

Toyota, 2010. Toyota facts _3, [Online]. Availible from:

http://assets.clickmotive.com/Networks/G/GSTWebsites/Content/Newsroom/pdf/Toyota
%20Facts.pdf. [Accessed: October 1, 2010]

COLLEEN BARRY and GREG KELLER (AP) – Oct 1, 2010. At Paris, conventional engines
still going strong. [Online]. Availible from:
http://www.google.com/hostednews/ap/article/ALeqM5i7Staie8CTYR6nHcdZCUrqnADWHwD
9IIUU980?docId=D9IIUU980. [Accessed: October 8, 2010]

Autoexpress, 2010. Toyota auris. [Online]. Availible from:

http://www.autoexpress.co.uk/carreviews/newreviews/207275/toyota_auris.html#ixzz11ywijj4p.
[Accessed: October 8, 2010].

Marketingteacher, 2010. Toyota swot analysis. [Online]. Availible from:

http://www.marketingteacher.com/swot/toyota-swot.html. [Accessed: October 1, 2010].

Toyota, 2010. Sustainability report 2010. [Online]. Availible from:

http://www.toyota.co.jp/en/csr/report/10/index.html. [Accessed: October 1, 2010].

14