Toyota is in for changes in its strategy and marketing initiatives.

The Japanese multinational that felt the effects of a global slowdown is now stepping on the gas, not in the traditional way of expanding with numbers and volumes but in terms of strategic decisions that are in line with its successful strides in new markets. Toyota has just cleared its position on some bad press it received as a result of its mats leading to unintended acceleration, after it has amply been proved that there were no mechanical problems involved in the issue. Toyota Prius: With the mat news behind it, Toyota plans to make its way forward through initiatives in the production and marketing departments. Toyotas Prius Hybrid vehicle has been a roaring success as a stand-alone brand. High on style, space and efficiency, the vehicle, after its enormous acceptance with the consumers, is being seen as more than yet another model in Toyotas stable but as a marque that is strong enough to have a slew of models within the Prius brand. While no decision has been taken in this regard and while it is yet to be approved by the management, the move by Toyota is very much on the cards, which could see the Toyota Prius brand being stretched to accommodate sub-brands under the marque. Lexus Hybrid: Next in line is to cash in on the success of its hybrid vehicles and the star power of Lexus Toyota has ideas to make Lexus a hybrid-only brand in the UK. And in efforts to project all its brands and initiatives using the right pedestal, Toyota is going ahead with its consolidation in the Advertising arena, pooling all its advertising projects for Toyota brand in Europe into Saatchi & Saatchis account. While individual projects were allotted to different ad agencies previously, the move is aimed at creating and projecting a uniform image of what the brand stands for in the market. Advertising messages for its Lexus brand would be handled by CHI & Partners. Both the agencies would work in unison to creating a global marketing campaign and to provide a more consistent and uniform branding platform across the globe. Toyota is known to be consistent in its product quality and in the production department. With its initiatives in the fast-growing hybrid market and with efforts to get its branding and advertising acts together, Toyota could well be expected to set the roads on fire in the days to come Toyota Marks 4 Millionth Vehicle Built in Canada Milestone Vehicle Built Today September 17, 2010 Cambridge, Ontario - The 4 millionth Canadian built Toyota was driven off the line today in Cambridge at the Toyota Motor Manufacturing Canada Inc. (TMMC) assembly plant. The 2010 model silver Corolla was surrounded by some of the more than 6,500 TMMC employees for a group photograph celebrating this major milestone. TMMC Chairman Ray Tanguay said, The consistent quality produced by Canadian Team Members has supported this major contribution to our economy. This is another

proud milestone for our company and for Canada. We are very grateful to our customers for their ongoing support. It took eleven years from the initial start of production in 1988 to build the first 1 million cars at TMMC. By comparison, the 3 millionth vehicle was built just three years ago. Today, with the potential to build 500,000 vehicles annually, the 5 millionth vehicle built in Canada could arrive in only two years. The TMMC Cambridge South plant recently received the J.D. Power Gold Plant Quality award, after being ranked by customers as the best manufacturing plant in North and South America out of 68 plants and the #2 manufacturing plant globally out of 137 plants. About Toyota Motor Sales, U.S.A., Inc. Toyota Motor Sales (TMS), U.S.A., Inc. is the marketing, sales, distribution and customer service arm of Toyota, Lexus and Scion. Established in 1957, TMS markets products and services through a network of nearly 1,500 Toyota, Lexus and Scion dealers which sold more than 1.77 million vehicles in 2009. Toyota directly employs nearly 30,000 people in the U.S. and its investment here is currently valued at more than $18 billion. Function of Marketing Department Arrange the events of the government institutes Prepare the potential customer list Make region performance report Provide selling skills to dealers employees Contact with the Govt. institutes Contacts with the banks for leasing Establish the new dealership network monitor the sale at dealers Swot Analysis Opportunity Switching diesel market toward petrol and CNG market Failure of competitor model Unacceptability of competitor model Price increase in 1000cc Threat Government reducing the excise duty on imported car IR interest rate Higher Reduction in Diesel prices Entrance of the new Firms

Swot Analysis Strength Brand image Market Leadership Easy availability of spare parts Dealership network Suitable for rural area Weakness Always charge the premium price Management Control by local partner

How Toyota became the most innovative car company in the world This weekend's New York Times Magazine featured a great cover story on Toyota, which explained how the Japanese company has become the acknowledged leader in the global automobile industry. At a time when Ford and GM are downsizing and rightsizing, the incredible Toyota engineering team continues to get things right. The latest product is the Toyota Tundra, a new full-size truck designed with Red State America in mind. With Toyota, small incremental innovations snowball over time into huge improvements in productivity, efficiency and output. By the end of 2007, Toyota could pass GM as the world's largest car company. Already, the company's stock market capitalization is $240 billion - higher than that of GM, Ford, Daimler Chrysler, Honda and Nissan combined. If Toyota were a baseball team, surmises Jon Gertner of the New York Times, it would be the type of team that wins 150 out of 162 games. Anyway, if you're looking for some Japanese management buzzwords to inject into your cocktail conversations, the article explains concepts like kaizen ("continuous improvement") and genchi genbutsu ("what customers want in a car or truck and how any current versions come up short"). What's cool is that Toyota engineering and design teams actually make archaeological visits to truck graveyards in Michigan, where they examine the rusting hulks of old trucks: "With so many retired trucks in one place, they also gained a better sense of how trucks had evolved over the past 30 years - becoming larger, more various, more luxurious - and where they might go next." (In addition to this great quote about evolution, the article highlights the importance of Toyota's DNA -- both topics, of course, that relate directly to the Endless Innovation blog!) Marketing Strategies For Toyota Toyota has grown to a large multinational corporation from where it started, and expanded to different worldwide markets and countries by becoming the largest seller of cars in the beginning of 2007, the most profitable automaker along with increasing sales in, among other countries, the United States. Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. The Toyota Production System (TPS) is a production system steeped in the philosophy of

the complete elimination of all waste and that imbues all aspects of production with this philosophy in pursuit of the most efficient production method. Toyota Motor Corporations vehicle production system is a way of making things that is sometimes referred to as a lean manufacturing system and has come to be well known and studied worldwide. This production control system has been established based on many years of continuous improvements, with the objective of making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible. Toyota has introduced new technologies including one of the first mass-produced hybrid gas-electric vehicles, Advanced Parking Guidance System, a four-speed electronically controlled automatic with buttons for power and economy shifting, and an eight-speed automatic transmission. Toyota, and Toyota-produced Lexus and Scion automobiles have consistently ranked near the top in certain quality and reliability surveys. Toyota is one of the largest companies to push hybrid vehicles in the market and the first to commercially mass-produce and sell such vehicles, an example being the Toyota Prius. The Prius has become the top selling hybrid car in America. This technology is the most widely tolled-out environment-friendly system in the automotive industry to date. Toyotas CEO has committed to making every Toyota a hybrid vehicle eventually. Hybrids are viewed by some automakers as a core... Toyota's Future Strategic Toyota Company's strategic plans are divided into three categories: one year plan (shortterm), two year (mid-term), five year plan (long-term) depending on the duration also on the of the ideas to be developed. The one year plan includes the apparition of new and finding ways cut costs or even already growths which are not put practice. According to Toyota Motor Company's official, the company is always seeking. Although they do yearly up a model and, they has managed to achieve some its when discussing the cutting down of costs. Toyota Motor Company is developing its hybrid technology and even planning for 2008 emergence a model: "The Lexus to technology continues with the launch of the all-new 2008 LS 600h L premium luxury hybrid sedan when it goes on sale this summer." dealing with cutting down costs there some by which this be done: investing in new technologies like the hybrid , trying to find long term for daily problems, in finding new of consolidating their products, by better materials and by coming up with new of improving the labor conditions. Moreover, by growths on a short term Toyota Motor Company tries to enter preestablished markets and gain a sale-quota or the project already discussed and . When comes to very companies, such as Motor Company, it really to which are the one year plans and are or plans because a year plan could developed on, could be on other markets in the following years or, it be starting point for projects. That is, it is quite hard focus on short-term plans, other what has been established so far.

Two year plans (mid-term) are more easily identifiable as they either planned projects that exceed one year, planned improvements to efficiency or planned . Most implementation projects usually take more than year. This sense, Toyota Motor Company always improves in all. They currently developing their programs support ongoing expansion but at the same time manage to keep their unity all over world. Moreover, Toyota Motor Company is trying to improve its technology, by renewing its fabrication and the technology used all over the. "By 2008, Toyota have annual capacity to build nearly 2.2 million cars and trucks in America." to the fact Toyota Motor Company open second at Toyota Motor Manufacturing Canada in Woodstock, Ontario in 2008 in order to sustain the ones in North America. Furthermore, Toyota is not just a place to, but it strives become family for its employees In formulating sound strategic plans, an organization must assess its internal strengths and weaknesses in relation to the external opportunities and threats it faces. An effective strategy will take advantage of an organizations strengths and opportunities at the same time it minimizes or overcomes weaknesses and threats. Regular assessment and SWOT analysis is thus given importance. STRENGTHS 1. Toyota has become the generic name in the Pakistan market. Whenever the company launches the new car in the market it has always the great support of the already market orientation so the car introduced by it easily covers the introduction stage. People have a lot of trust for their name and this is why Toyota is the leader in automobile industry. 2. Toyota has a great strength for its 2.OD car, Toyota is the hot selling diesel engine car in Pakistan and is the only company offering the diesel engine in this category of cars. 3. The important edge over the company editors are the sample availability of the spare parts in the markets. The price of spare parts is comparatively low and availability all over the country has proved to be beneficial for the company .4. Toyota is a financially strong company. This can be seen by analysis of the financial reports of the previous years. 5. Toyota vehicles have got a much stronger resale value than other car in Pakistan. This is why people prefer to buy a Toyota. 6. Toyota vehicles are made according to the Pakistani environment. No doubt the other cars are available but Toyota has an edge because it has learnt various

conditions of the Pakistan environment and people. So new additions and changes are proving to be successful. 7. Toyota has an edge over others because it is the only automobile company in Pakistan, while offers many variants of its vehicles. Also Toyota offered many variants of colors. 8. Toyota is proud to have a successful team of competent managers and skilled workers. Extensive training have enabled the employees to perform outstandingly. 9. Toyota is the only company having the most sophisticated network of dealerships where customers are treated by professional dealers. There are seventeen dealers in Pakistan where sales, service and spare parts are offered, leading to convenience for the customers. New investment by Toyota in factories in the US and China saw 2005 profits rise. Diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. Many are now saying that Toyota may become the largest automaker surpassing General Motors by next year. Uses marketing techniques to identify and satisfy customer needs, and as emphasized by the case video, on customer relationships.

WEAKNESSES Manufacturers need to make sure that it is their models that consumers want versus competitor's. Most products targeted to the US and Japan only - shifting attention to the Chinese market. Movements in exchange rates could see the already narrow margins in the car market being reduced. Company needs to cautiously keep producing cars in order to retain its operational efficiency, especially in the case of the Prius, which the case study states had a backorder dating back six months. 1. There is some weakness in the case of ergonomic interior of Toyota corolla as well. The power steering is not speed sensitive and the air conditioning system in severe heat is in-effective. Interior dimensions are less and heavy body and small engine sometimes create problems in hilly areas. 2. There are some weaknesses in the dealership network. The dealers sometimes tend to deviate from the recommended course of action and principles of Toyota. This results in customers complaints sometimes.

3. The company is besieged with internal operating problems which are not very serious. Because of dependency on Toyotas principles delivery of cars is done after 4-6 months. This is because CKD kits are ordered four months before and once they arrive from Japan, assembly and delivery takes some more time. 4. A lot of effort is pull into the sales forecasting because of the changing political and economic scenarios. For this reasons inventory has to be kept low.5. The company feels that one weakness is the changing policies of the government and also the 30% cash L/c margin. This has lead to an adverse environment.

OPPORTUNITIES Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which is targeted at the streetwise youth market. 1. Export is a major opportunity for Toyota Indus Motors. Vehicles were exported to Bangladesh just once in order to prove the plant capacity and efficiency of the company. This should be started again. 2. The contract with the government departments e.g. Motorway Police, Shaheen Force and the dignitaries where corolla has an opportunity to deal with the business markets along with dealing in consumer markets.3. Toyota can do better by focusing on segments much more than presently being done. 4. Toyota should also try to lower its price of Corolla in the segment where Honda city has penetrated. 5. It can offer discounts to Government departments and large organizations on purchase of its vehicles in more quantities.6. Success of the manufacturing of Daihatsu coure is a major opportunity for Toyota to excel further careful planning and the right time to launch the new car can prove to be a success. THREATS In 2005 the company had to recall 88,000 SUVs and pick up trucks due to faulty front suspension systems. Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost daily, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe 1. Even though Toyota enjoys the position of being the no.1 automobile company, still it faces some threat from competitors especially Honda. Honda has adopted aggressive strategies for capturing the market. 2. Even though Toyota keeps a careful eye on the changing trends, still the changing customer needs and trends can prove to be a threat.3. A major threat is the changing political and economic scenarios of Pakistan.

Changing government policies affect the companys performance. Devaluation of rupee adverse shifts in foreign exchange rates, trade policies of governments is a threat. Moreover the company is threatened by the ongoing rate of 30% cash L/c margin.4. Import of re-conditioned cars is also considered as a threat for the company.5. The planned car manufacturing plants of Hyundai and Daewoo can prove to be tough competition for Toyota if they are successful.