The-study-analyses-Toyotas-daily-activities-1

REPORT

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Target Market

The study analyses Toyotas daily activities, marketing strategies while realizing its core competencies that give it a competitive advantage over rivals in the vehicle manufacturing Industry. These internal factors help the companies identify the pros and cons of its target market. As earlier identified strength are usually the core competencies and should be market oriented .Customer oriented competencies tend to focus on the reason all businesses are active and that is meeting customers’ needs (Porter 1980).

Toyota is trying to improve technical innovation by developing green friendly car that will influence a customer based approach. The target market is mainly the environmental conscious consumers. The consumers choose to drive cars that are environmentally friendly because they realize the amount of damage other vehicles do to the environment (Jones, 2009).Convectional vehicles degrade the environment because they use more fuel and have higher emissions.

Consumers with higher level of education and higher household income are more likely to purchase hybrid cars. The target consumers are proud to be associated with the product and will positively recommend a hybrid car over others. They are slightly older than the new average car buyers and are willing to pay more for hybrid vehicles. The perception would be that more females would purchase such a product and believed to be highly educated on environmental matters. Environmental conscious buyers are willing to pay an extra for an environmental Friendly vehicle.

Hybrid models have distinct owners or buyers who consider quality and performance but projecting environmental friendly image. Toyota has targeted the environmental conscious consumers in retrospect the ecofriendly consumers that are interested in saving the environment.

The world is changing in terms of customer satisfaction and there is an increase in demand of automotive market. Toyotas goal is to grow in harmony with society to enhance corporate value of a company. The company planning and execution system remains competitive years through and manages to focus on similar goals. Toyotas agenda is to remain the market leader in vehicle manufacturing. Its strategy is to penetrate United States and Europe. Improving technology is also a priority as the world goes green, Toyotas responding flexibly to address issues that produce environmental friendly products.

According to (Toyota, 2005) the production of Toyota Prius was an exceptional as it ensured consumers would get such an environmental friendly car. Consumers would be willing to purchase greener cars or petrol electric hybrid vehicles. The model tends to have lower fuel consumption and less emission which is perfect for the environment. Hybrid electric vehicles are the modern trends that would help reduce pollution. Toyota has introduced greener cars in the United States although reception has been minimal.

Toyota markets such as Prius is an Eco friendly vehicle that uses less fuel and lower emissions. The target market is looking for an environmentally friendly car that will not degrade the environment (Porter, 1980). Toyota Prius is such a model that emphasises on saving the environment although it is more expensive than convectional cars. The household income earners prefer family cars with motivations to preserving the environment.

The adaption off petrol electric vehicles has been largely accepted in Australian and the Middle Eastern countries to reduce amount of pollution. This is gaining popularity among the United States are European countries who are seeking alternatives in reducing pollution.

Research Questions

Demographic

What is the target market for Toyota products in relation to age, household composition and employment status?

Geographic

Do hybrid vehicles have an impact on the human environment and physical environment?

Psychological

What factors will change the attitude of buyers especially in relation benefit of the new product?

Behavioural

Will the change of convectional cars to greener cars affect the purchasing power of consumers?

Product idea brain storming

Research Method

Our research design will be cross sectional, descriptive in nature. We will be seeking to explain these environmentally conscious consumers choose to purchase petrol-electric hybrid vehicles…

Our data collection will be quantitative in nature.

Underlying assumption

The underlying assumption in this methodology is that the demand for petrol-electric hybrids is so strong compared to conventional vehicles because it uses less fuel and has lower emissions.Furthermore, those that have been using environmental products motive is to preserve the environment.

Population

The population selected for this study was consumers whose consumption behaviour was considered to be environmentally friendly.

Sample Design

Using the survey monkey sample calculator, with a 95% confidence level and error margin of 5%, our sample target was 20 household families. Simple random sampling technique would be used to arrive at our sample size.

Data Collection

Quantitative data collection method was used in form of a questionnaire .The questionnaire was designed to solicit responses indicative of respondents’ personal values, beliefs, attitudes and perceptions associated with an entrepreneurial orientation. The respondents were also required to indicate the semester of study. The survey provided for gender declaration.

Measures

The items on the questionnaire were used to construct four scales which measure specific motivational factors believed to discriminate between an entrepreneurial and a non-entrepreneurial orientation. These four scales were: (1) innovativeness, (2) locus of control, (3) risk-taking, and (4) energy level. Items for scales for innovativeness, risk-taking, and energy level were adapted from the Jackson Personality Inventory. Items used for the locus of control scale were adapted from Rotter’s I-E scale. For risk-taking, two facets were considered: monetary and social. Individuals who score high on this scale are prone to exposing themselves to situations having uncertain outcomes. On the other hand, scoring high on the Energy Level demonstrated appreciable enthusiasm, endurance, enterprising, initiative, energetic, persistent and self-confident.

Results

Multivariate logistic regression analysis was used to test the relationship between the level of education, eco-friendly users and prevalence of each of the four profile characteristics: innovativeness, internal locus of control, risk-taking, and energy level. A dummy variable representing gender (Male=1 and Female=0) was also included as a control variable in all four regression models.

Multi Step development Process

Toyota realizes the capabilities of workers and this has made the company take more executive power to staffs .It was evident that line workers can disrupt the whole manufacturing process if they desired to do so. Flexibility on the shop floor operations is essential as managers can capture intellectual capabilities of staffs.

Evaluating the Ideas

Toyota human resource has developed techniques of training and developing employees. Toyota city trains and increases multi skilled human resources they ensure knowledge is maintained to offer assistance to subordinates. The company played safe by providing workshops and training programs and this enables an employee to an expert in his or her job. Toyota uses this capability to enhance product quality for product market (Porter, 1980).

Market Evaluation

The world is changing in terms of customer satisfaction and there is an increase in demand of automotive market. Toyotas goal is to grow in harmony with society to enhance corporate value of a company. The company planning and execution system remains competitive years through and manages to focus on similar goals. Toyotas agenda is to remain the market leader in vehicle manufacturing. Its strategy is to penetrate United States and Europe. Improving technology is also a priority as the world goes green, Toyotas responding flexibly to address issues that produce environmental friendly products.

Analysis

Toyota Motor Corporation received greater profit margin in 2013 as compared to all the other months. There was a decline in profits in 2012 because Toyota was expanding business to other regions. Investments in US and China saw net profits rise as shown above by 0.8 % from 2012 to 2013.This indicates that sales had increased tremendously; critics argue that Toyota engage markets with products customers need (Toyota, 2005).

According to market distribution in the year 2014 North America has had the best sales as compared to other continents. It is clearly seen that Toyota Corporation has ventured into other markets and has a significant impact. For example in the United States of America Toyota is ranked 2nd largest vehicular manufacturing company after General Motors. This happened after Ford could not match the vigorous nature of which Toyota penetrated the market in the fiscal year 2002/2003.

The auto mobile industry is very competitive as the technology is changing on a daily basis. The companies indicated below are among the premier auto manufacturing industries in the global market (Toyota, 2005). They offer different automobiles from mini vehicles to huge transportation vehicles. The companies are Toyota Corporation Limited and Ford auto industry they both embrace the culture of mass production and advancement in technology as their strategies.

Ford is a premier in automobile industry in terms of innovation, reliability and product quality. They have similar strategies as Toyota but are result driven and are capitalizing on awareness and interest in producing hybrid vehicles to get more customers. They rely on some levels in their strategic promotions.

Market Testing

As indicated above the production of Toyota Prius was an exceptional marketing strategy as it ensured consumers would get an environmental friendly car? Consumers would be willing to purchase greener cars or petrol electric hybrid vehicles. The model tends to have lower fuel consumption and less emission which is perfect for the environment (Porter, 1980). Hybrid electric vehicles are the modern trends that would help reduce pollution. Toyota has introduced greener cars in the United States although reception has been minimal.

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Through mass production the company can generate funds from other plants outside the headquarters. This strategy enables a company to synergize demand due to spread plants all over .This helps a manufacturing industry to manufacture a number of models at low cost but increase market awareness. It is usually vital for a company to compete for consumer sales. The Company is considered the industry leader in production and sales Toyota sells about 70 modes. Toyota was the first to introduce TQM and this has made it the number one brand in the world.

Consumer oriented promotions include retail promotions and consumer promotions. Its main purpose is to help build transactional sales promotion and brand sales promotion. The growth of consumer oriented sales promotion is vital in a company’s marketing strategy and programs. Its main objectives are to repeat purchase, introduce new brand, combat or disrupt competitor’s strategy, make larger purchases and contribute to marketing communications (Jones, 2009). Tools of consumer oriented sales promotion coupons such as manufacturer coupons which are used for transactional building. Sampling which are used for both transactional building and brand building and then there are premiums which are basically gifts awarded by companies to help an individual purchase a product or build brand names (Levy,1995).

Reference

Levy, D. (1995) International Sourcing and Supply Chain Stability Journal of International Business Studies 26(2)

Hill, Jones, G. (2009). Strategic management theory: An integrated approach strategic management series. (9 ed., p. 41). Cengage Learning.

Porter, M. E. (1980). Competitive strategy: techniques for analysing industries and competitors. Michigan: the University of Michigan

Toyota (2005), HTTP;/Toyotacorporation.financialreport.coM