Case Study on Toyota
The Nature of the problem for the Toyota In Europe revolves around the repositioning of Toyota brand In Europe and Increase market share of Toyota from 3% to 5% by 2005.
At also include the positioning of the brand Toyota as the local brand and be more customer focused. Penetrate through the European market which is dominated by the local brands from across the Western Europe and Ford is the only other Non- European brand which made a mark on the European market.
In order to give momentum to achieve goal Toyota Company which became the world’s largest car company in the world by 1998. It issued a spending package of 16. 2 billion dollars over the period of three years, to reap the economies of scale and mostly R ; D and marketing functions.
It also includes the capacity expansions to 1. 2 million units In North America and 400,000 units In Europe. MAJOR ISSUES There are several others major problems faced by the Toyota company to compete with in the European market which became one of the world’s largest market for automobile in which Germany, France, Italy, U.
K and Spain accounted for the 80% of the Western Europe Market. 1) Markets are Heavily Protected: The major markets of Europe are heavily protected by the governments. They prefer ‘National champions’ manufactures.
Strict regulations and high import tariffs made almost impossible for not only Toyota but other Japanese manufactures to penetrate into the market. 2) Failing to adapt to the European Market : After the tough negotiation by the Japanese international trade and Industry with E and they settled for the 1. 1 million/year to be Imported.
But still Toyota fell flat in Europe In large part by failing to adopt to local taste. 3) Treatment of European Market Like U.
S : Toyota In general treated European Market Like American market. They did not paid e enough attention In tailoring cars specially for European market and carving out niches for the market. 4) Customer focus was low : Customer focus of Toyota was skewed only on the older and more conservative lifestyle and mindset. Also seen by people as cold secretive Japanese brand. Local touch to the brand was missing.
It included: a) Reduce the Cost of Ownership b) Enhancing the customer satisfaction experience. C) Network Development d) Brand Management 4) Extensive market Research: European Consumers are different than the US and Canadian consumers. As the Spirit of nationalism and regional sentiments are really strong. So in order to break into the European market, the research for their taste ND localization of the brand holds a very important place.
In order to make Toyota a true globalizes player and successful in European market, It has to treat each market as a individual market. Taste and preferences are different for people in every part of the world treating different markets as unique.
Effective market research and involvement of the local industry can hold a very important place in the success of the company in the country or a region. As it encourages the local participation of the people which could be very useful in the success of the company.