Toyota Marketing Strategy

The Global Marketing Strategies of the Toyota and the Hyundai

Introduction

This research focuses on analyzing the global marketing strategies of the two famous Asian automotive manufacturing companies, the Toyota and the Hyundai. The Toyota and the Hyundai are both taking middle and high income households as the core customers to promote their products. Each of the company has its own unique marketing strategies hence this paper will initially examine each company separately using the 4P Model which is the abbreviation for Product, Price, Place, and Promotion. After that, there will be a discussion section to compare and contrast the marketing strategies of the two companies before reaching the final conclusion and evaluation.

Toyota

Products

The Toyota aims on producing vehicles that has good quality, high performance and reasonable price. But when the Toyota saw the potential growth of the luxury car, it started launching a new brand, named Lexus, targeting customers having higher financial conditions and demanding for the experience of the fully equipped and more comfortable car.

However, there is a great threat for all of the current automotive lines including the Toyota’s production lines, which is used car. Since a Toyota car usually has quite long life, it is sold and bought through several owners hence this fact may lead to a threatening drop in sales of the Toyota overall. With price lower than the price a new car, used cars have become the most considerable choice for low and middle income families. Once a used car have no big difference with a new car, used cars may be considered a potential alternative product leading to a significant threat to automobile manufacturing industry in general and for the Toyota company in particular. By the willingness of customers switching to use used cars, this may create downward pressure for automobile manufacturers and affect the profits and revenue of the whole automobile industry. However, considering the remaining life of the product, the used cars seem to cost their owners

The restrictions on the ability to set up the outreaching distribution channels and high costs to develop new channels are the major barriers for the Toyota’s competitors. Therefore, it is extremely challenging for the competitors of Toyota to overcome the Toyota’s distribution networks. Toyota specially built for their extensive distribution system not only in Japan but also many other countries around the world

With wide-scale development of Toyota 's global network of resellers and distributors, and major vendors in the markets of not only Japan but also the outside world, the cost per unit of distributing a product becomes lowered and