STRATEGIC COMMUNICATION

-A case specific approach

(Toyota Recall)

Group S
Presentation

Strategic Communication
Massing of information, ideas and actions to influence attitudes and behavior of target audience in support of our policy objectives

The synchronized promulgation of information, ideas and actions over time through means and content that are tailored for multiple and diverse audiences
Ref: strategic communication theory and application Dr. Emily Goldman

What is Toyota case?

Three separate but related recalls of automobiles by Toyota Motors Corporation occurred at the end of 2009 and start of 2010. Sticking accelerator pedal Floor mats interfering with accelerator pedal

Several vehicles experienced unintended acceleration

As of January 28, 2010 recall 37 deaths have been reported . The worldwide total number of cars recalled by Toyota stood at 9 million.

Toyota Case Continued..

Consumers in USA and Canada have filed numerous lawsuits regarding the sudden acceleration problem on the electronic throttle control system and alleged Toyota's negligence A day after Toyota announced sale suspension, General Motors began offering a US$ 1,000 cash rebate targeted toward Toyota owners By February 1, 2010 Ford, Chrysler and Hyundai were offering similar incentives

Recall Summary

Responses from Toyota

Akio Toyoda, the president and CEO of Toyota Toyota has, for the past few years, been expanding its business rapidly. Quite frankly, I fear the pace at which we have grown may have been too quick. I would like to point out here that Toyota's priority has traditionally been the following: First; Safety, Second; Quality, and Third; Volume. These priorities became confused, and we were not able to stop, think, and make improvements as much as we were able to before, and our basic stance to listen to customers' voices to make better products has weakened somewhat. We pursued growth over the speed at which we were able to develop our people and our organization, and we should sincerely be mindful of that. I regret that this has resulted in the safety issues described in the recalls we face today, and I am deeply sorry for any accidents that Toyota drivers have experienced. Especially, I would like to extend my condolences to the members of the Saylor family, for the accident in San Diego. I would like to send my prayers again, and I will do everything in my power to ensure that such a tragedy never happens again.

Other responses
Our investigation indicates that there is a possibility that certain accelerator pedal mechanisms may, in rare instances, mechanically stick in a partially depressed position or return slowly to the idle position," Irv Miller, Group Vice President for Toyota Motors

"The possibility of this happening is very rare - John Hanson, Toyota spokesperson

Excerpts From Press Releases

Toyota is currently working to develop a remedy for this condition. Until this remedy is developed, customers will receive an interim notice instructing them to bring their vehicle to a dealership for a preliminary inspection.Once the remedy has been developed, customers will receive a secondary notice advising the customer of the remedy availability Detailed information and answers to questions are available to customers at www.toyota.com/recall and at the Toyota Customer Experience Center at 1-800-331-4331 In addition, as a separate measure independent of the vehicle-based remedy, Toyota will install a brake override system onto the involved Camry, Avalon, and Lexus ES 350, IS350 and IS 250 models as an extra measure of confidence

Effectiveness of the strategic communication

9 million cars were called back Toyota was viewed favorably by 59% of Americans, 22% very favorably Toyota is still the largest manufacturer in the world despite of call backs

Managerial Learning
Revealing required only those details that are

Linking the strategy to the goal of the organization is important for maintaining customer relationship The issue when communicated by a native, is made more effective