GUMBA -2nd sem

Marketing Management Assignment Submitted By Sulakshana Rajkhowa (Roll No 48)

Submitted toRinalini P Kakati M.B.A. (GAU) PH.D. (GAU)

[THE MARKETING APPROACH OF TOYOTA]

A study of the company history and various business strategies of Toyota including the product line and 4ps.

Marketing Management Assignment A Marketing Approach Of Toyota

Contents
Preamble Introduction to Toyota Motors --------------------------------------- 2 Preamble Introduction to product Market Area-------------------------------- 4 Marketing imperatives and marketing principles----------------------------------6 Market Structure Analysis-------------------------------------------------------------- 7 Swot Analysis----------------------------------------------------------------------------- 8 Select Segmentation Dimensions and Form Groups----------------------------- 9 Final Set of Market Segments In addition to the previously identified consumer segments ------------------------------------------------------------------- 10 Implications for Implementing Action Programs (4Ps) --------------------------13 Selling Organization-----------------------------------------------------------------------14 Sales force processes---------------------------------------------------------------------15 Firms Current Distribution System---------------------------------------------------16 Pricing Strategy----------------------------------------------------------------------------17 Product Line--------------------------------------------------------------------------------18

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Marketing Management Assignment A Marketing Approach Of Toyota

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Marketing Management Assignment A Marketing Approach Of Toyota

Preamble: Introduction to Product/Market area

A plug-in hybrid electric vehicle (PHEV) is a hybrid vehicle with batteries that can be recharged by connecting a plug to an electrical power source. Plug-in hybrids have characteristics of both conventional hybrid electric vehicles and of battery electric vehicles. PHEVs can also be commercial passenger vans, utility trucks, school buses, scooters, and military vehicles. PHEVs are sometimes called grid-connected hybrids, gas-optional hybrids or GO-HEVs. As of 2007, the cost for electricity to power plug-in hybrids during all-electric operation in California has been estimated as less than one fourth the cost of gasoline. In comparison to conventional vehicles, PHEVs can help reduce air pollution and dependence on petroleum, and lessen greenhouse gas emissions that cause global warming. Plug-in hybrids use no fossil fuel during their all-electric range if their batteries are charged from renewable energy sources. Other benefits include improved national energy security, fewer fill-ups at the filling station, the convenience of home recharging, opportunities to provide emergency backup power in the home, and vehicle to grid applications. Toyota has said it plans to migrate to lithium-ion batteries in future hybrid models, but not in the next-generation Prius, expected in fall 2008. Lithium-ion batteries are expected to significantly improve fuel economy, and have a lower weight-to-energy ratio, but cost more to produce, and face safety concerns due to high operating temperatures. On November 29, 2006 GM announced plans to introduce a production plug-in hybrid version of Saturn's Greenline Vue SUV with an all-electric range of 10 mi (16 km. The model's sale is anticipated by fall 2009, and GM announced in January, 2007 that contracts had been awarded to two companies to design and test lithium-ion batteries for the vehicle. GM has said that they plan on introducing plug-in and other hybrids "for the next several years." In January 2007, GM unveiled the Chevrolet Volt, which is expected to initially feature a plug-in capable, battery-dominant series hybrid architecture which they are calling EFlex. Future E-Flex plug-in hybrid vehicles may use gasoline, diesel, or hydrogen fuel cell power to supplement the vehicle's battery. General Motors envisions an eventual progression of EFlex vehicles from plug-in hybrids to pure electric vehicles, as battery technology improves. General Motors presented the Volt as a PHEV-40 that starts its engine when 40% of the battery charge remains, and which can achieve a fuel economy of 50 mpgU.S. (4.7 L/100 km / 60.1 mpgimp), even if the vehicle is not plugged in. PHEVs typically require deeper battery charging and discharging cycles than conventional hybrids. Because the number of full cycles influences battery lifetime, battery life may be less than in traditional HEVs which do not deplete their batteries as deeply. However, some authors argue that PHEVs will soon become standard in the automobile industry. Design issues and trade-offs concerning Sulakshana Rajkhowa-Roll No-48 Page 4

Marketing Management Assignment A Marketing Approach Of Toyota battery life, capacity, heat dissipation, weight, costs, and safety need to be solved. Advanced battery technology is under development, promising greater energy densities by both mass and volume, and battery life expectancy is expected to increase. Interest in plug-in hybrids increased in 2006 to such a level that the architecture was included as an area of research in President George W. Bush's advanced energy initiative and mentioned in his 2007 State of the Union Address. After hearing an explanation of PHEVs, 49% of consumers surveyed in 2006 said they would consider purchasing one. That is about the same level of interest as standard hybrid technology.

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Marketing Management Assignment A Marketing Approach Of Toyota

Marketing imperatives and marketing principles

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Marketing Management Assignment A Marketing Approach Of Toyota

Market Structure Analysis

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Marketing Management Assignment A Marketing Approach Of Toyota

SWOT Analysis

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Marketing Management Assignment A Marketing Approach Of Toyota

Select Segmentation Dimensions and Form Groups

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Marketing Management Assignment A Marketing Approach Of Toyota Laggers

This is the higher income majority late majority. They follow the Pioneers and Kermits. Substantial value must be demonstrated to get them to move earlier. Lizards This is the lower income majority/late majority. They are very similar to Kermits but have not committed to hybrids of any kind yet. Showboats Showboats follow trends and like to be admired. They are influenced by celebrity and popular culture. Showboats care more that others view them as environmentally conscious than about actually being so. Wannabes Similar to the Showboats but with less money. The financials will be much more important to this segment. The Affluentials

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Marketing Management Assignment A Marketing Approach Of Toyota

Luxury consumers primarily concerned with the good things in life. Environmental image may outweigh actual environmental benefits in this segment.

Hard-Working Joes These are consumers whose vehicle needs outweigh environmental concerns. They demand high performance on features such as torque and hauling capacity. The Simpsons Lower and possibly fixed income households, the Simpsons are primarily motivated by financial concerns.

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Marketing Management Assignment A Marketing Approach Of Toyota

Final Set of Market Segments In addition to the previously identified consumer segments
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Kermits Pioneers Opportunists Lizards Laggers Wannabes Showboat The Simpsons Hard-working Joes The Affluentials Fleet (not a consumer segment) Fleet represents companies who purchase large numbers of vehicles for use in their operations. The Fleet segment includes rental car companies. Reducing operating costs is critical to these companies. They also gain some value from reducing their environmental footprint.

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Marketing Management Assignment A Marketing Approach Of Toyota

Implications for Implementing Action Programs (4Ps)

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Marketing Management Assignment A Marketing Approach Of Toyota

Selling Organization

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Marketing Management Assignment A Marketing Approach Of Toyota

Sales force processes

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Marketing Management Assignment A Marketing Approach Of Toyota

Firms Current Distribution System

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Marketing Management Assignment A Marketing Approach Of Toyota

Pricing Strategy

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Marketing Management Assignment A Marketing Approach Of Toyota

Product Line
Cars & Minivans

Crossovers & SUVs

Trucks

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