Toyota Market Segmentation, Targeting and Positioning

Market Segmentation, Targeting and Positioning over Toyota

Course: Principles of Marketing (101) Section-2 Summer 2011

Prepared For: KASHFIA AHMED

Senior Lecturer Department of Business Administration ast !est "ni#ersit$ Prepared B$%
Md& 'ou(idul )slam )D: 2010-2-1*-0+* Md& Mo,ammel -a.ue )D% 2011-1-10-1+/ 0$ma 1erdous )D% 2011-1-10-*2/ A$a, 3asin )D% 2011-1-10-42+ S(arif S(i(a5 -ossain )D% 2011-1-10-2//

Date o Su!mission% *rd August6 2011

A"kno#$edgement
7n 5e(alf of our group 8e 8ould like to s(o8 utmost gratitude and respect to (our (onora5le facult$6 Madam 9as(fia A(med6 Senior Lecturer6 Department of 5usiness Administration6 ast-8est "ni#ersit$ for (er #alua5le ad#ice and firm guidance t(roug( t(e 8(ole assignment& S(e is super5 at (er su5:ect matter& !e get e#er$t(ing for (erself& !it(out (er enlig(tenment t(roug(out t(e assignment6 8e 8ould (a#e 5een stum5ling spontaneousl$ and for t(at 8e gi#e our (eartfelt t(anking once again& !e 8ould also like to t(anks t(ose 8(o (a#e gi#en us #alua5le suggestions regarding t(e assignment suc( as our fello8 class mate;s &Also man$ t(anks go to t(e dealers of t(e 'o$ota motors residing in Banglades( 8it( t(eir support and #alua5le information& 0o8 t(e less t(e 8e5site pro#iding profound and correct information a5out 'o$ota6 8e t(ank t(em as 8ell& 1inall$6 all t(e credit goes to our fello8 group mem5ers6 8it(out 8(om t(is assignment 8ouldn;t (a#e 5een possi5le to make& 1rom eac( and e#er$ single mem5er of t(e group6 8e t(ank e#er$ indi#idual for t(eir (ard 8ork and utmost support&

Ta!$e o Content

<ecuti#e Summar$ 7f ='737'A;

Introdu"tion o T%&%TA
'o$ota started in 12** as a di#ision of 'o$oda Automatic Loom !orks de#oted to t(e production of automo5iles under t(e direction of t(e founder>s son6 9iic(iro 'o$oda&?10+@ )ts first #e(icles 8ere t(e A1 passenger car and t(e A1 in 12*B& 'o$ota Motor Co& 8as esta5lis(ed as an independent compan$ in 12*+& )n 200/6 'o$ota>s sales surpassed Aeneral Motors6 making 'o$ota num5er one in t(e 8orld& '(e compan$ 8as founded 5$ 9iic(iro 'o$oda in 12*+ as a spinoff from (is fat(er>s compan$ 'o$ota )ndustries to create automo5iles& '(ree $ears earlier6 in 12*46 8(ile still a department of 'o$ota )ndustries6 it created its first product6 t(e '$pe A engine6 and6 in 12*D6 its first passenger car6 t(e 'o$ota AA& 'o$ota Motor Corporation group companies are 'o$ota (including t(e Scion 5rand)6 Le<us6 Dai(atsu and -ino Motors6?/@ along 8it( se#eral Enon-automoti#eE companies&?2@ 'MC is part of t(e 'o$ota Aroup6 one of t(e largest conglomerates in t(e 8orld& 'o$ota Motor Corporation is (ead.uartered in 'o$ota Cit$6 Aic(i and in 'ok$o&?10@ )n addition to manufacturing automo5iles6 'o$ota pro#ides financial ser#ices t(roug( its 'o$ota 1inancial Ser#ices di#ision and also 5uilds ro5ots&

Toyota "ompany pro i$e

Company 'ame President and (epresentative Dire"tor

'o$ota Motor Corporation

Akio 'o$oda

Head % i"e

1 'o$ota-C(o6 'o$ota Cit$6 Aic(i Prefecture 4+1/B+16 Fapan P(one% (0BDB) 2/-2121 1-4-1/ 9oraku6 Bunk$o-ku6 'ok$o 112-/+016 Fapan P(one% (0*) */1+-+111 4-+-1 Meieki6 0akamura-ku6 0ago$a Cit$6 Aic(i Prefecture 4B0-/+116 Fapan P(one% (0B2) BB2-2111 August 2/6 12*+G0um5er of s(ares issued *644+622+6422 s(ares *2+&0B 5illion $en (as of Marc( *16 2010) DD06222 s(are(olders 1rom April 1 to Marc( *1 of t(e follo8ing $ear Motor He(icle Production and Sales

Tokyo Head % i"e

'agoya % i"e

Date ounded Capita$ S)are)o$ders Fis"a$ &ear Main *usiness A"tivities

*usiness Sites

(ttp%GG888&to$ota-glo5al&com

'um!er o emp$oyees +Tota$ in a i$iated "ompanies,

*206B20

Market % ering

Market Segmentation for 'o$ota

-eograp)i" Segmentation !orld Iegion or Fapan6 0ort( America6 urope6 Asia6 ot(ers& Countries Densit$ Climate "r5an6 Su5ur5an Dr$ J -ot6 Cold Demograp)i" Age 1amil$ Si,e 1/-B0K Single6 2mem5ers6 2-4 mem5ers6 4K mem5ers

)ncome(per $ear) "nder 2B000L6 2B000-*B000L6 *B000LK

7ccupation Aeneration

Businessman6 mplo$er6 farmers6 7fficial6 transporter '(ird generation6 0e<t Aeneration Psy")ograp)i"

Social Class Lifest$le

-ig(er6 "pper Middle6 Middle6 Ad#enturers6 Lu<urious6 1ormal6

*e)aviora$ Benefits Lo$alt$ Status Dura5ilit$6 Po8er6 1uel efficienc$ 0one6 Medium6 Strong6 A5solute

-eograp)i" Segmentation
'o$ota operates man$ geograp(ical areas6 5ut pa$ attention to geograp(ical needs J 8ants& '(e$ segment t(eir market on t(e 5asis of 8orld region6 densit$ of population J Climate& 7n t(e 8orld region t(e$ segments t(eir market for Fapan6 0ort( America6 urope6 Asia6 ot(ers& )n 20026 'o$ota initiated t(e E)nno#ati#e )nternational Multi-purpose #e(icleE pro:ect ()MH) to optimi,e glo5al manufacturing and suppl$ s$stems for pickup trucks and multipurpose #e(icles6 and to satisf$ market demand in more t(an 140 countries 8orld8ide& )MH called for diesel engines to 5e made in '(ailand6 gasoline engines in )ndonesia and manual transmissions in )ndia and t(e P(ilippines6 for suppl$ to t(e countries c(arged 8it( #e(icle production& 1or #e(icle assem5l$6 'o$ota 8ould use plants in '(ailand6 )ndonesia6 Argentina and Sout( Africa& '(ese four main )MH production and e<port 5ases suppl$ Asia6 urope6 Africa6 7ceania6 Latin America and t(e Middle ast 8it( t(ree )MH #e(icles% '(e 'o$ota -ilu< (Higo)6 t(e 1ortuner6 and t(e 'o$ota )nno#a& '(e$ produce t(eir cars on t(e 5asis of ur5an J su5ur5an densit$ of t(ese region J countries& Also t(e dr$ J (ot6 cold climate (as effects on t(eir production& So t(e$ segments t(eir cars for cold J sno8 co#ered area J also for dr$ J (ot area as 8ell& 1or e<ample6 S"H cars are speciall$ customi,ed for running on sno8 co#ered area or on a desert&

Demograp)i" Segmentation
Demograp(ic factors are t(e most popular 5asis of t(e segmentation for t(e 'o$ota& 'o$ota segments t(eir products on t(e 5asis of age6 income6 famil$ si,e6 occupation and generations&

Age% 'o$ota produce t(eir car from t(e age range 1/-B0K& People among t(ese ages (a#e different c(oices o#er t(e models of 'o$ota& 1or e<ample people of age 1/-*0 purc(ase 'o$ota Supra& Celica and aging a5o#e purc(ase four door Sedans like- Alion6 Premio etc& 1amil$ Si,e% 'o$ota also produces cars on t(e 5asis of famil$ si,e& 1or e<ample 0oa( J Ho<$ for DK mem5ers& Corolla6 3aris for *K mem5ers& 1or single J a famil$ 8it( 2 person t(e$ produce Supra6 celica etc& )ncome- 1or t(e people 8(o (as t(e income under 2B000L per $ear6 'o$ota offers D class cars like Allion6 Corolla6 Matri<6 amr$6 Prius& 1or 2B000-*B000L per $ear- A#alon6 IAH46 Hen,a& 1or *B000LK6 t(e$ offer some e<otic cars like Le<us series& 7ccupation- 'o$ota (as some 5usiness class cars like Mark)) J Cro8n for 5usinessmen& 0ormal Sedan cars like 3aris6 corolla for emplo$ers& Some pickup trucks like 'acoma J '(undra for farmers J 8orking class people& Aeneration- 'o$ota is 5asicall$ producing t(eir cars for t(e t(ird generation& '(e$ also producing some -$5rid cars for t(e ne<t generations like- Prius6 Camr$ ($5rid&

Psy")ograp)i"
People in t(e same demograp(ic group can (a#e #er$ different ps$c(ograp(ic make ups& '(at;s 8($ 'o$ota also segments t(eir market on t(e 5asis of ps$c(ograp(ic factors like Social class and Lifest$le&

So"ia$ "$ass: People of different classes (as different c(oices& '(at;s 8($ 'o$ota segments t(eir market on t(e 5asis of t(ree social classes% -ig(er class6 "pper Middle class and middle class& .i e Sty$e: 'o$ota offers (ig(lander and 1F Cruiser to t(e ad#enturous people and cars like A#alon and Se.uoia&

*e)aviora$/
Depending on t(e 5e(a#ior of t(e customers6 'o$ota segments t(eir market on t(e 5asis of Benefits and lo$alt$ status& *ene its: Different consumer;s 8ants different sort of 5enefits from t(eir products& '(at;s 8($ 'o$ota offers t(ree kinds of 5enefits to t(eir consumers& '(e$ are dura5ilit$6 po8er and fuel efficient& .oya$ty status: Consumers6 8(o are (ig(l$ lo$al to t(e products of 'o$ota (as a special place in 'o$ota;s segmentation& 1or e<ample people of Asia are (ig(l$ lo$al to t(e products of 'o$ota& So t(is segmentation is (ig(l$ profita5le for 'o$ota&&

E e"tive Segmentation o Toyota

'o$ota c(ooses t(eir segments on effecti#e 8a$s& '(ese 8a$s (elps 'o$ota to (a#e a clear o#er#ie8 of t(e segmentations done 5$ t(em& '(e effecti#e measurements t(at t(e$ c(oose for t(eir segmentation are%

Measura!$e: Segmentation done 5$ 'o$ota is t(oroug(l$ researc(ed and anal$,ed& As a result t(e$ (a#e clear measurement a5out si,e6 purc(asing po8er and profiles of t(e targeted segments& A""essi!$e: 'o$ota can easil$ reac( into t(e core of t(eir segments and (a#e a profound access 5ecause of t(eir #ast kno8ledge and a5ilit$ o#er t(ese segments& Su!stantia$: 'o$ota c(ooses segments in t(e market t(at are (ig(l$ profita5le for t(e compan$& Di erentia!$e: Since 'o$ota (as a clear kno8ledge o#er t(eir segmented market6 t(e$ kno8 8(ic( consumer 8ants 8(at product& So 'o$ota differentiates t(eir consumer on t(eir c(oices and creates effecti#e segmentation for t(em& A"tiona!$e: 'o$ota does t(eir segmentation on t(e 5asis of t(eir resources and ser#es eac( and e#er$ one of t(em efficientl$& '(e$ don;t c(oose segments 8(ic( are out of t(eir capa5ilit$&

T%&%TA0s Market Targeting

Eva$uating Toyota Market Segmentation: Segment si,e and gro8t(
Segment structural attracti#eness Compan$ o5:ecti#e and resources

Se$e"ting Toyota0s Target Market Segmentation:

Type o marketing "ndifferentiated marketing(mass marketing) Differentiated marketing (emarks )gnore 5$ 'o$ota 1ollo8ed 5$ 'o$ota E1p$anation '(e compan$ 5asicall$ does not follo8s t(e mass marketing strateg$& 'o$ota offer different model of car for different segments like Corolla6 Le<us& & 'o$ota (as offer some e<otic cars like Le<us series some specific groups 0ot possi5le

1ollo8ed 5$ 'o$ota Concentrated Marketing )gnore 5$ 'o$ota Micromarketing

2ndi erentiated Marketing 'o$ota totall$ ignores undifferentiated Marketing& Di erentiated marketing )t is t(e most important 8a$ for 'o$ota to target t(e segment market& 'o$ota offer different model of car for different segments like =Corolla; for middle class6 =Le<us; for upper class&

Con"entrated Marketing
'o$ota offer =Le<us; series for lu<uries consumers& And =Corolla; series for middle class&

Mi"romarketing
'o$ota automo5ile ignore targeting t(is t$pe of market segment& Because it is impossi5le to full-fill indi#idual and local consumer demand for 'o$ota&

Positioning
'o$ota 8orks strategicall$ to esta5lis( a firm position on t(e mind of t(eir consumer& '(eir main motto is Mmo#ing for8ardN and MPursuit of perfectionN& !it( t(ese mottos on t(eir mind 'o$ota tries to de#elop t(eir product up t(e .ualit$ of t(e consumer;s c(oice& 'o$ota positions its fuel efficient ($5rid car- Prius as (ig( tec( solution to t(e energ$ s(ortage& M-o8 far 8ill $ou go to sa#e t(e planetON it asks to t(e consumers to make a great position on t(eir mind and to t(ink a5out t(e en#ironment as 'o$ota 5elie#es t(eir product is eco-friendl$& 7ne of t(e stronger sides of 'o$ota is t(at t(e$ offers 5etter car in afforda5le price comparing to t(e ot(er car industries& 7n t(is 5asis t(e$ produce (ig(l$ afforda5le cars for t(e people of (ig(er middle and middle class creating a 5etter positioning on t(eir mind&

Positioning map

*M3

-M

Toyota

TAT A

*M3:

Pri"e )ig)er t)an -enera$ Motors, Toyota, Tata4 Per orman"e )ig)er t)an -enera$ Motors, Toyota, Tata4

-enera$ Motors: Pri"e $o#er t)an *M3 !ut )ig)er t)an Toyota and Tata4 Per orman"e $o#ers t)an *M3 !ut )ig)er t)an Toyota and Tata4 Toyota: Pri"e )ig)er t)an Tata !ut $o#er t)an *M3 and -enera$ Motors4 Per orman"e )ig)er t)an Tata !ut $o#er t)an -enera$ motors and *M3 Tata: Pri"e $o#er t)an *M3, -enera$ Motors and Toyota4 Per orman"e $o#er t)an *M3, -enera$ Motors and Toyota4 T)is positioning map reve$s t)e position o t)e Toyota Car on t)e "onsumer mind on t)e !asis o pri"e and per orman"e "omparing to t)e ot)er Competitors4