toyota case study marketing

• The overarching strategy of Toyota is skewed towards cost leadership, the strategy employed by its flagship brand which accounts for the vast majority of its sales. Cost leadership where Toyota's competitive advantage stems from is a result of a lean manufacturing method and standardized methods and processes that save costs and increase productivity. The company's culture is another source of competitive advantage not only maintaining cost leadership by supporting the lean manufacturing prices, but also by helping create hard innovation that has led to differentiation.

Key Highlights

• The Toyota Motor company has extensive product breadth as its product lines are not limited to the manufacturing of passenger and commercial vehicles. In addition to the above, Toyota also provides mobility services, financial services, warranties, and car services to its customers. Toyota has large product depth in passenger and commercial vehicles, a reflection of the company's mix of strategies through different brands. Notably, the company's large product breadth also stems from a relatively high level of product customization to local markets.
• The company has adopted a mix of growth strategies, which puts more emphasis on product development, as well as market development. Electric and fuel cell vehicles, along with sales in emerging markets are the company's top growth priorities.
• The analysis of generic strategies, product mix and growth strategies serve as essential tools to understand the key success factors of Toyota, as well as its future strategy approach.
• Brief on Toyota's generic strategies, marketing mix (through use of the 4Ps) and growth strategies.

Reasons to Buy

• What is Toyota's overarching growth strategy?
• What is Toyota's strategy regarding its product range?
• What are Toyota's main growth strategies?

Key Topics Covered:

1. OVERVIEW

1.1. Catalyst

1.2. Summary

2. TOYOTA'S GENERIC STRATEGIES

2.1. A production process that maintains a cost competitive advantage

2.2. A company culture that creates innovation

3. MARKETING MIX

3.1. Product

3.1.1. Product Range (Depth and Breadth)

3.1.2. Quality

3.2.1. Manufacturing Locations

3.2.2. Trade Channels and Sales Locations

3.3.1. Price Strategy

3.3.2. Costs

3.4. Promotion

3.4.1. Advertising

3.4.2. Promotional Channels

4. GROWTH STRATEGIES

4.1. Diversification: New Markets - New Products

4.1.1. Tapping into the emerging prospect of hydrogen fuel

4.1.2. Backwards integration with the production of electric car batteries

4.2. Product Development: Existing Markets - New Products

4.2.1. A strategic shift to electric vehicles

4.2.2. Hydrogen-fueled vehicles are a long-term bet for Toyota

4.2.3. Limited new ICE model launches over the last two years focused on the domestic market

4.3. Market Development: Existing Products - New Markets

4.3.1. Launching selected models into emerging markets

4.3.2. Mobility as business: Expanding auto-leasing

5. APPENDIX

5.1. Sources

5.2. Further reading

6. ASK THE ANALYST

7. About the Publisher

For more information about this report visit https://www.researchandmarkets.com/r/nb7gg0

ResearchAndMarkets.com Laura Wood, Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

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Toyota Marketing Strategy And Its Domination Of The Global Automotive Market

• June 30, 2023
• Digital marketing

Toyota Marketing Strategy – Toyota , a Japanese multinational automotive manufacturer, has established itself as one of the leading car manufacturers in the global automotive market. With a rich history spanning nearly a century, Toyota has consistently delivered innovative and high-quality vehicles, earning the trust and loyalty of customers worldwide.

In this article, we will delve into Toyota marketing strategy , exploring the key factors that have contributed to its domination of the global automotive market.

Table of Contents

Overview of toyota’s success in the global automotive market.

Toyota’s success in the global automotive market can be attributed to its well-crafted marketing strategy. The company’s commitment to delivering exceptional quality, reliability, and performance has set it apart from its competitors. Toyota marketing strategy focuses on building brand trust, fostering innovation, understanding customer needs, and expanding its global presence.

Toyota has employed various marketing tactics to build its brand trust and promote its products. Through its global advertising campaigns, Toyota has positioned itself as a reliable and trustworthy automotive manufacturer. To reach a wider audience, Toyota also engages in digital marketing , utilizing social media platforms such as Facebook and Twitter to promote its products.

Additionally, the company emphasizes customer service through offering extended warranties and free maintenance services. Toyota also sponsors various sports events and activities to further enhance its brand visibility.

Innovation is another key factor in Toyota’s success in the global automotive market. The company has consistently invested in research and development to create cutting-edge technologies that improve safety, performance, and fuel efficiency of their vehicles. 

As a result, Toyota continues to be at the forefront of industry trends with advanced features such as hybrid engines and autonomous driving technology. Understanding customer needs is also an important component of Toyota marketing strategy – they have dedicated teams that conduct market research to gain insights into customer preferences. This

How Toyota Building Brand Trust and Reputation

One of the cornerstones of Toyota marketing strategy is its unwavering commitment to quality and reliability. The company has consistently delivered vehicles that meet and exceed customer expectations, earning a reputation for excellence. Toyota’s rigorous quality control measures ensure that every vehicle leaving its production line is of the highest standard.

Case studies of Toyota’s successful product launches serve as a testament to the brand’s trustworthiness. For example, the introduction of the Toyota Prius, the world’s first mass-produced hybrid electric vehicle, showcased the company’s dedication to environmental sustainability. The Prius quickly gained popularity among environmentally-conscious consumers, solidifying Toyota’s position as an industry leader in eco-friendly transportation.

To maintain its reputation, Toyota employs strategies for building and maintaining customer trust. Transparent communication, prompt resolution of customer concerns, and proactive recalls and safety campaigns demonstrate Toyota’s commitment to customer satisfaction and safety. By placing customer needs at the forefront, Toyota has fostered long-term relationships with its customers, leading to repeat business and positive word-of-mouth recommendations.

Toyota Innovation and Technological Advancement

Innovation and technological advancement play a crucial role in Toyota marketing strategy . The company continually invests in research and development to stay at the forefront of automotive technology. Toyota’s focus on sustainable and eco-friendly vehicles has propelled it to become a pioneer in the industry.

1. Toyota’s Focus on Sustainable and Eco-Friendly Vehicles

Toyota Marketing Strategy – Toyota recognizes the importance of environmental sustainability and has made significant strides in developing vehicles with reduced carbon emissions. The company has introduced a range of hybrid and electric models that offer fuel efficiency without compromising performance. By addressing the growing demand for eco-friendly transportation, Toyota has gained a competitive edge in the market.

The company’s commitment to environmental sustainability extends beyond the development of hybrid and electric vehicles. Toyota has implemented a number of initiatives aimed at reducing its carbon footprint. As part of its Eco-Drive program, Toyota encourages customers to drive more efficiently by providing tips and tools for improving fuel economy. 

The company has also invested in renewable energy sources, such as wind and solar power, to reduce its reliance on fossil fuels. By taking proactive steps towards sustainability, Toyota is setting an example for other automakers who are looking to reduce their environmental impact.

2. Development of Hybrid and Electric Models

Toyota Marketing Strategy – Toyota’s commitment to hybrid technology is evident in its development of the iconic Prius and other hybrid models. These vehicles combine a gasoline engine with an electric motor, resulting in reduced fuel consumption and lower emissions. Toyota’s expertise in hybrid technology has allowed it to dominate the hybrid vehicle market, capturing the attention of environmentally-conscious consumers.

Moreover, Toyota has been investing in the development of electric vehicles (EVs) to meet the evolving needs of consumers. The introduction of the Toyota Mirai, a hydrogen fuel cell electric vehicle, demonstrates the company’s commitment to exploring alternative energy sources and reducing dependence on fossil fuels.

3. Incorporating Cutting-Edge Technology in Vehicles

Toyota Marketing Strategy – Toyota understands the importance of incorporating cutting-edge technology in its vehicles to enhance the overall driving experience. The company has embraced advancements such as advanced driver-assistance systems (ADAS) , connectivity features, and autonomous driving capabilities. By integrating these technologies into its vehicles, Toyota aims to provide customers with a seamless and intuitive driving experience.

Toyota is also committed to exploring other innovative technologies such as artificial intelligence (AI) and big data analytics . By leveraging AI and big data, Toyota is able to enhance the safety, efficiency, and performance of its vehicles. The company has implemented predictive maintenance systems that can detect potential issues in vehicles before they occur. 

Furthermore, Toyota has introduced connected car services that allow customers to access real-time information about their vehicles. These services enable customers to monitor their cars’ performance and diagnose any problems remotely. By leveraging the latest technologies, Toyota is able to provide customers with a superior driving experience.

Understanding Toyota Customer Needs

A key aspect of Toyota marketing strategy is its deep understanding of customer needs. The company conducts comprehensive market research and gathers customer insights to develop vehicles that cater to specific preferences and requirements.

1. Comprehensive Market Research and Customer Insights

Toyota invests significant resources in conducting market research to identify emerging trends, preferences, and customer expectations. By analyzing market data and gathering customer insights, Toyota can anticipate and respond to changing market demands effectively. 

This customer-centric approach enables Toyota to develop vehicles that align with consumer preferences and stay ahead of the competition.

2. Customization and Personalization Options

Toyota Marketing Strategy – Toyota recognizes that customers have unique preferences and desires when it comes to their vehicles. To cater to these individual needs, Toyota offers a wide range of customization and personalization options. 

Customers can choose from various trim levels, colors, and optional features, allowing them to create a vehicle that suits their style and requirements. This level of customization enhances the overall ownership experience and fosters customer loyalty.

3. Strategies for Delivering Exceptional Customer Service

In addition to understanding customer needs, Toyota Marketing Strategy places great emphasis on delivering exceptional customer service. The company strives to provide a seamless and hassle-free experience throughout the entire customer journey, from initial inquiries to after-sales support. 

Toyota dealerships are known for their knowledgeable and friendly staff, who are trained to assist customers and address their concerns promptly. This commitment to exceptional customer service has played a significant role in establishing Toyota’s reputation for customer satisfaction.

Toyota’s Global Expansion and Localization

Toyota’s global expansion strategy for Toyota Marketing Strategy has also been an important factor in the company’s success. By establishing local production facilities in key markets, Toyota has been able to reduce costs and increase its presence around the world.

1. Toyota’s Global Manufacturing and Sales Network

Toyota Marketing Strategy – Toyota’s global manufacturing and sales network is an essential aspect of its marketing strategy. The company has production facilities in various countries, allowing it to meet the demands of local markets efficiently. By manufacturing vehicles locally, Toyota can adapt to regional preferences and regulations, providing customers with products that meet their specific needs.

Moreover, Toyota’s expansive global reach has empowered the company to tap into a vast and diverse customer pool. By customizing their marketing efforts to cater to specific local markets, Toyota has successfully established genuine connections with customers across various regions.

2. Adapting to Local Market Preferences and Regulations

Toyota Marketing Strategy – Toyota understands that each market has its unique preferences and regulations. To successfully penetrate new markets, the company conducts extensive market research to identify consumer needs and preferences. By tailoring its products and marketing strategies to align with local cultures and regulations, Toyota can effectively cater to diverse markets worldwide.

3. Strategies for Successful Entry into New Markets

Toyota Marketing Strategy – When entering new markets, Toyota employs various strategies to establish a strong presence. The company often forms partnerships with local manufacturers or dealerships to leverage their knowledge and expertise. 

This approach helps Toyota navigate the complexities of the local market and build trust with customers. Additionally, Toyota invests in marketing and advertising campaigns tailored to the specific market, ensuring maximum visibility and brand awareness.

Toyota’s Effective Marketing Communication

Toyota Marketing Strategy – Toyota’s marketing communication plays a vital role in promoting its brand and products. The company employs various strategies to reach its target audience effectively.

1. Toyota’s Advertising Campaigns and Messaging

Toyota’s advertising campaigns are designed to showcase the company’s commitment to quality, innovation, and sustainability. The advertisements often highlight the features and benefits of Toyota vehicles, emphasizing their reliability and fuel efficiency. 

Additionally, Toyota’s messaging focuses on building an emotional connection with customers, emphasizing safety, family values, and environmental responsibility.

2. Leveraging Digital Platforms and Social Media

In today’s digital age, Toyota recognizes the importance of leveraging digital platforms and social media to engage with customers. The company maintains active social media accounts and regularly posts content related to its products, events, and corporate social responsibility initiatives. Toyota also utilizes influencer marketing to reach a wider audience and enhance its online presence.

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3. Partnerships and Collaborations for Enhanced Visibility

Toyota Marketing Strategy – Toyota understands the power of partnerships and collaborations in enhancing its brand visibility. The company has partnered with various organizations, including sports teams, charities, and environmental groups, to align its brand with positive values and causes. These partnerships not only help increase brand awareness but also foster a positive brand image among consumers.

Embracing the Future of Mobility

Toyota Marketing Strategy – Toyota is not only focused on its current market dominance but also on embracing the future of mobility. The company is actively investing in autonomous vehicles and mobility services to stay ahead in an evolving industry.

1. Toyota’s Vision for Autonomous Vehicles and Mobility Services

Toyota envisions a future where autonomous vehicles play a significant role in transportation. The company is investing in research and development to develop self-driving technology that prioritizes safety and reliability. Additionally, Toyota is exploring mobility services such as ride-sharing and car-sharing platforms to provide customers with convenient and sustainable transportation options.

2. Investments in Ride-Sharing and Car-Sharing Platforms

To stay ahead in the evolving industry, Toyota has made strategic investments in ride-sharing and car-sharing platforms. The company aims to leverage these platforms to reach new customers and expand its service offerings. By participating in the sharing economy, Toyota is positioning itself as a leader in the future of mobility.

3. Strategies for Staying Ahead in an Evolving Industry

To maintain its dominance in the global automotive market, Toyota continuously innovates and adapts to changing customer preferences and technological advancements. 

The company invests in research and development to develop cutting-edge technologies and improve its existing products. Additionally, Toyota actively monitors the competitive landscape to identify emerging trends and opportunities for growth.

Toyota marketing strategy has played a pivotal role in its domination of the global automotive market. By building brand trust and reputation, expanding globally while adapting to local markets, and effectively communicating with customers, Toyota has established itself as a leader in the industry.

Furthermore, by embracing the future of mobility and investing in autonomous vehicles and mobility services, Toyota is positioning itself for continued success. As the automotive industry continues to evolve, Toyota marketing strategy will undoubtedly play a crucial role in shaping its future.

Parker Casio Patty

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2018 winner, Toyota, global brand marketing - case study

It’s 2017 and, across Europe, Toyota’s hybrid moment has surely come. The VW ‘dieselgate’ scandal, and the engine debate it triggered, has opened the door for hybrids. Toyota’s hybrids were launched back in 1997, and now, as competitors fast track their own models, Toyota can finally capitalise on those years of investment. Can’t it?

Except, even with significant financial incentives now available for buyers, the overwhelming majority of car purchasers continue to eschew hybrid vehicles, either sticking with petrol or postponing their purchase altogether.

Why? A host of reasons, some functional, some emotional, varying by audience and market.

That became Toyota’s challenge for us. How to tackle this myriad of consumer barriers to hybrid, simultaneously and fast, before the automotive category got its act together and Toyota’s moment of hybrid advantage was lost?

The&Partnership used a radically different approach to audience research. We used the power of data and technology to seize the day: sizing barriers, unlocking insights and informing a vast system of creative content. Each element addressed a different audience challenge, all served dynamically to audiences at the perfect point in their car buying journey. This insightled, multi-dimensional approach meant multiple consumer barriers could be cleverly tackled at the same time and led to exceptional sales growth of Toyota hybrids across key markets in Europe .

Within three months of the campaign , we saw a clear uplift in consideration: increasing Toyota hybrid search by 57%; increasing Toyota hybrid webpage visits by 36% and test-drive requests by 83%. Toyota’s image of being the ‘hybrid leader’ consistently trended up (2-5% depending on market). Finally, we achieved record hybrid sales: up 26.86%, much more than overall Toyota car sales, which only increased 3.38% across major European markets.

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“Just-in-time” only works as part of a comprehensive suite of strategies.

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The supply chain disruptions triggered by the Covid-19 pandemic caused major headaches for manufacturers around the world. Nowhere was this felt more acutely than in the auto industry, which faced severe shortages of semiconductor chips and other components. This led many people to argue that just-in-time and lean production methods were dead and being superseded by “just-in-case” stocking of more inventory.

• Willy C. Shih is a Baker Foundation Professor of Management Practice at Harvard Business School.

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Home » Management Case Studies » Case Study: Toyota Prius Marketing Strategies

Case Study: Toyota Prius Marketing Strategies

Toyota manufactures cars, which has a wide coverage from economic minibus to luxurious cars, SUV. The brand on sell includes Crown, Reiz, Vios, Corolla, Coaster and Prius. And Prius is the brand or car that Toyota has made a significant success in American market . It is a hybrid vehicle. What are the characteristics of it?

Hybrid vehicles have both a gas engine and an electric motor . When starting up or at very low speeds (under 15 mph), the auto runs on the electric motor. At roughly 15 mph, the gas engine kicks in. this means that the auto gets power from only the battery at low speeds, and from both the gas engine and electric motor during heavy acceleration. When starting up and operating at low speed speeds, the auto does not make noise, which seems eerie to some drivers and to pedestrians who don’t hear it coming!

Toyota Prius is the first mass produced hybrid car and the car is rated as the cleanest car sold in the United States, which was launched in US in 2001. The company sold close to 8 million units till date and more than half of the sales come from the US market. The word Prius in Latin means “before” and the reason why Toyota choose this name was to highlight the fact that the company is more focused on environmental awareness and protection even before the whole auto industry started to focus on the environmental pollution caused by cars through the emissions. Toyota pioneered the concept of environmental friendly cars and also alternative fuel cars as the worldwide fossil fuel reserves like crude oil are exhausted and the cars need to have alternative fuel for running them. Toyota management had encouraged the development hybrid concept car that works on both gasoline and electricity and the current models also include the full electric car. Toyota Prius series create d a new market segment of consumers who are highly environmental conscious and also gave an opportunity to all those consumers who want to focus on  saving the environment as global warming due to carbon fuel emissions had become a major concern worldwide.

Then, have a look back at Toyota’s history to find new Toyota has made its way to America. In 1957, Toyota exported to America at the first time and established the selling company. In 1984, a joint venture was established with General motor. Co. And in 1997, Prius was first in production and had a launch in America. It was such a great success that Toyota conquered American market . To dig into the reasons, it was largely contributed to the micro and macro environment at that time.

First, let’s have a look at micro-environments. We all know that American love cars so much. And due to oil crisis, Americans changed the need structure for cars, converting their needs to oil saving cars. While American car manufactures lacked producing such cars, then Toyota caught that opportunity and tried to occupy this niche market.

Toyota’s competitor at that time was Honda. It started to develop the hybrid car almost at the same time as us. It introduced the insight. Afterwards, but It didn’t sell well because of its poor design. As a result, Toyota got the first place in America. However, Toyota had no competitors in local at that time. GE and Ford were followers later.

In the macro environment there are many young men who love technique and pursue new technology products. And they are also highly educated and so have a strong environmental protect spirit. And Prius is just the combination of the concepts of environment and technology. Other factors are natural resources and pollution. Before the environment problem and energy crisis come into people’s attentions, Toyota began to research and develop the hybrid cars with a long term view, which was designed to reduce oil consumption and gas emissions.

In a country where everyone was ecstatic when governments raised speed limits above 55 mph, why would the Prius be so successful? For the first model, the answer lies in Toyota’s clever marketing campaign. To begin with, it wasn’t aimed at the mass market. Instead, Toyota thought that the first hybrid buyers would be “techies” and early adopters (people who are highly likely to buy something just because it’s new). The company was right. Once Toyota identified the target market, it was able to educate the right consumers 2 years before introduction. The company established a Web site to distribute information and set 3-brochures to 40,000 likely buyers just before the introduction. The press was also excited about the technology. Auto magazines, and even general interest media, ran articles describing, enthusing, or belittling the hybrids. All of this coverage helped Toyota sell 1,800 cars immediately.

In all, Toyota spent $15 million in 1997 touting the Prius. There were print ads in magazines such as Newsweek and Vanity Fair, but the bulk of the campaign was in television advertising on channels such as Discovery, the History Channel, the Learning Channel, and MSNBC. These ads helped to position Toyota as an “environmentally concerned” company and more subtly stressed the technology aspect of the car. After all, Americans love technology and are quick adopters of it.

After introduction, the ads appealed more to emotion with taglines such as “When it sees red, it charges”––a reference to the recharging of the battery at stoplights. Such ads are based on ambiguity where the headline attracts attention because its meaning is not clear. The consumer must process the information in the ad in order to interpret it. The result is higher ad impact and longer ad recall. Toyota also took advantage of the environmental appeal by sending out green seed cars shaped like Toyota’s logo to prospective buyers on Earth Day. They also wrapped some Priuses in green and gave away cars at Earth Day events.

Much of the Prius’s success is based on correct identification of the target market. Many early purchasers were attracted by the technology, began to modify cars, and shared their experiences through chat rooms such as Priusenvy.com.

Even though the Internet played a major part in the Prius launch, Toyota does not sell the car from its Web site. Buyers go to www.prius.toyota.com online to look at colors and decide on options such as CD players and floor mats. After that, the dealers get involved, but it takes specially trained salespeople to explain and promote the Prius. Therefore, Toyota is planning to launch and educational campaign aimed at salespeople and consumers.

Strategies After the Year 2004

Enlarge the market.

• Launch a new product : As more and more people accepted the new Hybrid vehicles, Toyota decided to enlarge the market, from the market of techies and adopters to a wider market. In order to reach this purpose, Toyota launched a new Prius. The new Prius improved styling, performance and gas efficiency. It is a sleek, Asian-inspired design including seven colors. Inside the Prius, there is a stubby switch to engage reverse or drive and a push button that turns everything on. A 7-inch energy monitor touch screen displays fuel consumption, outside temperature, and battery charge level. It also explains whether you’re running on gas, electricity, regenerated energy, or a combination of these. There are also screens to show how much electricity you have stored and to arrange your air conditioning, audio, and satellite navigation system. The interior is roomy and practical, with plenty of rear legroom. There are many storage space cubbyholes and shelves in the front, as well as a deep dashboard which leaves ample space for maps, books, and even your lunch. The CD player holders six discs.
• Large promotion : To launch the new Pirus, Toyota spent more than $40 million dollars spread over media in more consumer-oriented magazines and TV. The promotion is successful, as Prius sales are up 120 percent and have reached 28000 units in 2004.
• Relatively moderate price : Because of the “environmentally friendly” aspects of the car, there are government breaks on the car. The federal government gives a $1500 tax deduction, and some states allow single-occupant hybrids in HOV (High Occupancy Vehicle) lanes. Although the federal deduction will be phased out in the near future, other bills are pending to extend the tax break based on greater fuel efficiency and lower emissions from vehicles. So compared SUV cars there is a relative low cost because of the tax relief, and the price is moderate.
• Increased production from external incentives : Because of the rising gasoline prices, the demand for Priuses increased. Sales of full-sized SUVs such as the Ford Excursion and Expedition and the Lincoln Navigator suffered a sharp drop. The increased demand can be seem from the long for 6 months or more waiting lists. Spots on dealers’ waiting lists were even being auctioned on E-bay for $500. Toyota increased monthly production of Prius from 7500 to 15000, but just alleviated the shortages. During this time, the reputation of Prius increased and the sales increased a lot. However, though the excess demand for Prius, Toyota had no plans at that time to start production at a second plant, perhaps because he couldn’t predict how long this high demand would last. The new Prius made Hybrid familiar to the common consumers, the target of enlarging the market has reached. However, as the excess benefit exists in this market, there must be competitors coming in, and because of the internal learning curve. What strategies will Toyota make to offend these competitors?

Bring Hybrid to a Luxury Car Level

After Toyota’s success in Hybrid car, many competitors came up. Honda is another Japanese automaker. Ford began production of a hybrid model of the Escape SUV, giving consumers a choice of a hybrid or regular model. To promote the hybrid, Ford began an environmental print campaign built around mileage, emissions and other environmental concerns. GM is following the similar strategy, putting hybrid technology in vehicles that use the most gas. It has also developed a hybrid model of its Silverado truck.

Although so many competitors come up, they are followers. Toyota is still the market leader because of its more mature technology than other automakers and the reputation it made and because Toyota is the first to come into this niche market. In order to keep its advantages Toyota keeps on updating its technology and its Lexus division introduced a Lexus SUV hybrid, moving Hybrids up to the luxury car level.

Thus, Toyota has a big jump on US automakers who have only dabbled in this market at that time. So hybrid has taken a seat from medium car level to the luxury car level and until now Toyota is updating the hybrid technology and improving the performance of the hybrid car. Now the newest model is 2008 Prius model. The effort of Toyota makes common consumers remember Toyota every time someone mentions hybrid.

Now in the car market, most people still like stockcar racing, and SUV vehicle is still appealing to people’s taste. But as the gasoline price increases these years and people’s environmental protection awareness chances, the hybrid car which brings fuel efficiency and low emissions will become more and more popular in the future. And the competition will become more and more violence. So Toyota should keep on producing hybrid cars and updating technology.

When a new version of Prius which is improved from the old one is launched, Toyota also consider a lot of macro and micro-environment factors to establish their marketing strategy. Micro-environment factors usually contain the company, suppliers, marketing intermediaries, customers, competitors and publics, while macro-environment factors usually contain demographic, economic, natural, technological, political, and cultural environment factors. As for different companies, these factors have various levels of influence. And Toyota also has some particular factors which are more important and need closely monitored. We discuss such factors in detail in the following paragraphs.

Micro-environmental Factors

• The company : The slogan and concept of Toyota express explicitly that Toyota is always pursuing the product which is environment-friendly and fuel efficient. As the previous version, the new version is also continued to use this concept and the improved Prius is in accordance with the company’s image perfectly.
• Suppliers: There are not some apparent elements changed from the earlier period, so this factor does not contribute much to the decision making about marketing strategy.
• Marketing intermediaries:  Compared with 1997, the intermediaries are more familiar with the product and can sale it more efficiently. However, this is also not a very important factor since it does not change too much.
• Customers: The customers are more familiar with such new environment-friendly product and accept the concept. From the past promotion and the practical driving experience of customer, they have form a quite stable and growing market for the new version of Prius. This factor is more beneficial than the prior years when the product was first introduced to the market.
• Competitors: Changes in this factor are quite important to the strategy decision . There arise some competitors in the market, such as Honda, Ford, GM. So the competition in this market is fiercer than before. Toyota should monitor its competitors closely and try to predict their marketing strategy and establish the reaction plan.
• Public’s: Until now, It seems that the public always appreciate Toyota’s concept since Toyota emphasis on the new technology and environmental protection idea which is in the interest of the public.

Macro-environmental Factors

• Demographic environment : There are more educated people nowadays and this trend will continue in the foreseeable future. It is a factor that has no changes compared to prior years.
• Economic environment : This summer, the price of gas has climbed to the record high level. And the experts predicted that such price rising is not temporary but permanent. It is likely that the price will rise further, so the demand of the hybrid car which can use fuel more efficiently is growing. Toyota’s new product can meet such growing demand exactly. Such changing factor certainly contribute a lot to the decision-making process of marketing strategy.
• Natural environment : Since the resource is limited, it enhances the need of the public to find substitute resource and the need to use the fuel more efficiently. So Toyota’s product suits the need of the times well.
• Technological environment : Toyota has already been the top producer of the hybrid cars and although the other producers are providing the similar products, their technological ability is still far behind Toyota. However, Toyota needs to further enhance their leading position and keep up to date about any technology changes.
• Political environment: This is the most important factor in the macro-environment. The government has already given the tax incentives to the people who purchase the hybrid car that they can enjoy the tax deduction of $1500 when they buy it. Although such benefit will be out of date recently, there qre more other tax incentives which are under discussion and probably to be approved by the government in the near future. Furthermore, some states even provide the exclusive lane for the hybrid car in some highway. All these favorable government policies give more incentive for the public to purchase hybrid cars. So Toyota should take advantage of this factor.
• Cultural environment : Cultural factors are not changed so much and generally the culture of the public shows that the hybrid concept is well accepted.

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Toyota Digital Transformation Case Study

Toyota Motor Corporation conducts business in the automotive industry. It sells its vehicles in approximately 190 countries and regions. Its markets for its automobiles are North America, Europe, and Asia.

THE CHALLENGE WITH TOYOTA

No matter what your company size, there are a great deal of pros and cons when prioritizing one communication channel over another. Digital Delane was commissioned to examine the relationship between Toyota’s global website to shift the branding initiatives to social media social media exclusively.

After a discovery session with Toyota, we began mapping the framework and conducted a thorough examination of their vast network of social channels and websites. Once we collected the information and data, we then began prepping the document.

Toyota shifts gears with a multi-format, influencer-focused audio campaign

Written by Spotify Editorial Team

Brand vertical: Auto Objective: Brand Awareness, Favorability, Consideration Target audience: US Listeners Ages 18–49 Targeting used: Age, Language Market: US Flight length: 1/10/22–6/26/22 Format: Podcast Media, Sponsored Sessions, Video Takeover

Leading automaker Toyota was preparing to launch the first-ever Corolla Cross—a bold, compact crossover built to keep up with life's many changes and adventures. To promote the new vehicle, Toyota needed to get in front of versatile movers whose cars couldn't match their passions—until now.

They needed an automotive marketing channel that would help them raise awareness of the new model among versatile movers, passionate young achievers, and multicultural audiences.

The Solution:

From young drivers ready for an automobile upgrade to an experienced generation of car buyers looking for a vehicle that ticks their many boxes, Spotify is the place for brands to reach them with automotive digital advertising. Knowing this, Toyota turned to Spotify to launch an impactful, multi-format campaign consisting of audio, video, and podcast ads for US audiences spread across multiple segments. The ads aided listeners in “Finding that Perfect Fit" for their unique lifestyle.

As part of its “Miles and Milestones" initiative, Toyota tapped three influencers—James Henry, Jesús Morales, and Emmy Cho—to curate Spotify playlists that aligned with important moments in their lives. Each playlist included annotations from each influencer about the meaning behind their song choices.

The Toyota ads also reached diverse audiences across podcasts like Higher Learning , which unpacks the biggest topics in Black culture, and Dissect , a Spotify original that analyzes the music of prominent Black artists.

You can also listen to Henry's Falling in Love playlist and Emmy's A Decade of Recipes playlist on Spotify.

The Impact:

Toyota's multi-format campaign increased performance across the marketing funnel. Among their target audience, Toyota drove a noticeable lift in Consideration Intent and Awareness for the Corolla Cross. The brand also saw a 10 percentage point lift in Favorability, as more consumers agreed that Toyota "has exciting technology" and "versatile driving capabilities" after listening to the ad.

lift in Consideration Intent among listeners ages 21-24

lift in aided Awareness

lift in Favorability

The Takeaway:

Toyota paves the way for other auto advertisers looking to launch a combination of audio, video, and podcast ads. When it comes to reaching younger, multicultural audiences, Spotify can help drive results across the funnel—and take your campaign into the fast lane.

Ready to rev the engine on your own campaigns? Read on about automotive streaming trends , reach out to your Spotify Advertising team using the form below, or create a campaign with Spotify Ad Studio .

• MRI/Simmons Winter 2020 NHCS Adult Study 12-month, US, Spotify Free Users

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