Advertisements History Toyota
Toast’s brand Image of creating reliable and efficient Is damaged due to accelerator pedals getting caught on floor mats. Toyota faces tremendous competitive rivalry in the car market. Let was badly hit by 2008 financial crisis and declared its first annual loss in 70 years history. Spending much money on Advertisements History Toyota was founded in 1 937, Minute (2009) states that Toyota now owns and operates the Lexus and Scion brands and has a majority shareholding stake in
Dadaists and Hint Motors, and minority shareholdings in Fuji Heavy Industries, Issue Motors, Yamaha Motors and Mediumistic Aircraft Corporation. Since its inception Toyota has grown to become the world’s leading manufacturer in 2008 a title previously held by General Motors. It also held the label of being the most lucrative vehicle manufacturer In 2006. Toast’s success Is mainly due to a large US market share with the company having a smaller segment of the European market (Minute, 2009).
In May 2009, Toyota announced a record yearly net loss of E. Lion for the previous year as a consequence of the global downturn in vehicle sales caused by the 2007-09 balancing crises and the company predicted it would lose ?¬3. 7 billion in the current financial year (Minute, 2009). Most recently the Toyota brand has suffered due to the company announcing the recall of vehicles across its main markets namely China, Europe and the united States. Toast’s brand image of creating reliable and efficient cars is under threat due to accelerator pedals getting caught on floor mats.
Toyota Is recalling over 1. Lion cars and had to suspend sales of eight models. SOOT Analysis Strength: The company had the right mix of products for the markets that it served. Toyota primarily sold bigger cars like Fortunes and Quails in the American market and this was a great success. China on the other hand prefers fuel-efficient sedans.
Toyota in China marketed and sold cars like Pries, Corolla and Campy. The management quickly decided to invest in green’ technology and Toyota became one of the first companies to manufacture environment friendly, hybrid and efficient cars like the Auras.
Toyota reduces fuel efficient, higher quality and smaller automobile that can attract consumers. Weaknesses: Toyota had quite a few large-scale vehicle recalls. An Increase In recalls not only results In losses but also harms the brand Image of the company.
Weak presence In emerging markets Opportunities: Hybrid and Echo friendly Technology New Customer Segments Global Expansion Threats: Competition. Toyota faces tremendous competitive rivalry in the car market Increasing Maintenance cost of vehicles, rising fuel price and changing customer preference are challenging threats Alternative Courses of Action
Change the brand image by creating the good brand image in publicizes. Build credibility and trust with consumers. The company in order to reduce their weakness has started to shift its attention towards other country. India and China, are countries good move.
But, it must do more to increase its market share in these emerging economies in order to compete with General Motors which has a bigger market share especially in China. Make ways to have an edge with the competitors. Recommendation Develop the social media advertising to assertively collect testimonials and consumer reviews.
Testimonials and consumer reviews have been one of the most effective way to build credibility. India and China, are countries good move. But, it must do more to increase its market share in these emerging economies in order to compete with General Motors which has a bigger market share especially in China.
Competition can be fought by introducing new products, slashing prices, increasing market segments and innovation Conclusion Toyota must ensure that the cars produced are faultless and of good quality. An increase in recalls not only results in losses but also harms the brand image of the many. Increasing fuel prices have boosted the demand for more efficient cars. Customers today are more aware of the harm air pollution by vehicles causes to the environment. Therefore, there is a big demand for environment friendly cars. Emerging economies have a huge demand for cars.
Toyota must make sure it increases its market share in the developing economies in order to survive and compete in the global scenario. By increasing localization and strengthening the supply chain system, Toyota is slowly expanding into emerging markets.