5cs of Toyota Company:
For Toyota” company customers comes first” is the main priority. Being an excellent brand of automobile company Toyota, the promoting Strategy of this company concentrates on the higher section of its individual customers. The competitors of Toyota are, Ford, Volkswagen, and Honda. These companies are providing some good features in their automobiles on other hand Toyota was following their old techniques only. After the overseeing the revenue Toyota has decide to accept or change their working procedure, they have started use of new technologies, new innovation in their automobiles (Armstrong, et al., 2014). The marketing Strategy of the Toyota, that customers is first priority for them and according to the demand and feedback of customers they made some changes in their products and services. The main purpose of marketing research of any company is to know that: What is the demand of Customers? Threat poses company? Context of business is changing? Role collaborators play in the process? All these factors affect the market research of any company (Baker, 2014). Here further we will discuss about 5cs of Toyota in brief:-
Introduction of the Company:
Toyota Motor is automobile company in Japan. Toyota Company contained 333,498 employees global. As of January 2014, after research this is the 14th largest automotive company in automobile industry (Lockrey, 2015). By production this company was the largest automobile manufacturer company in 2012. Toyota was founded by Kiichiro Toyoda in 1937. It created its first product, a passenger car in 1936 (Scott, 2015).
Customers of the Company:
Improvements in the product and qualities after listen the customer voice and feedback regarding the product is the concept of Toyota Company. In 1982 Toyota motor co., Ltd and Toyota Motor Sales Co., Ltd were merged from new Toyota Motor Corporation. By the delivering voice of the customer to relevant department the entire company strives to ensure the satisfaction to improve the customer support and product quality. Basic philosophy of the Toyota Company is customer first and quality first.
Collaboration with suppliers, distributors, customers:
Principle of Toyota Company is fair business activities with their partners, suppliers, and distributers to raise the quality and services of the company in terms of customer’s safety and confidence, and work hard for increasing the customer satisfaction.
In every good or bad situation Toyota and its suppliers have faced same issues and solved it together in a very easy manner (Tuten, and Solomon, 2014). Toyota has built a strong trust and good relationship with his suppliers and distributers to achieve the mutual benefits and trust. Toyota has also introduced the policies of basic purchasing that include an open-door policy which introduce the fair competition, mutual trust base on mutual benefits. Also Toyota request to their suppliers to provide their own CSR activities to maintain the customer trust.
Competitors of the Company:
Thought Toyota is the world’s biggest automobile manufacturer company but it has competitors also. Major competitors of Toyota is FORD, Volkswagen, Honda, and GM. For dis American multinational company, products of ford who give major completion to the Toyota is:
- Ford Fiesta
- Ford Mustang
- Ford Explorer
Volkswagen products: A German multinational company in worldwide.
Honda Product: A Japanese multinational company in worldwide.
GM Products: General Motors is an automobile co. in worldwide.
This are the major competitors of Toyota which give competition to it.
Context (Factor affecting the organization):
Valuation multiples can change according to the many internal and external risk factor tis factor also important to understand for investors. These factors such as:
- Risk of significantly unfavorable currency movement.
- Risk of stagnation in Japanese auto sales
- High dependency in the US auto market
Toyota is an established company, so this is important that investors of Toyota pay attention to factors that can increase the company risk. To perform better in market, Toyota has been pressurized. Due to strengthening its overseas that revenues are likely to fall down. So, to avoid the company loss Toyota introduced some marketing strategies to their suppliers, distributers.
Stagnation in home market:
Unfavorable currency fluctuation is also affect the Toyota revenues. Investors of Toyota should always keep eye on the money movement in coming quarters. Especially the US dollar and the euro. Fluctuation in these two currency would hurt the profitability of company, which effect the future earnings growth of the company (Parente, and Strausbaugh, 2014).
Toyota Company has decided to expansion in the business so they introduce some new technologies, the future of the cars will be natural gas biomass and range of renewable. These techniques will help to storage the electricity and future oil production cost. Toyota displayed number of variety of alternative energy vehicles. Toyota also introduced “the Third Generation of Prices Hybrid” concept and small battery power called FT-EV concept also. By using these techniques Toyota introduced an urban electric car in 2012.
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Lockrey, S., 2015. A review of life cycle based ecological marketing strategy for new product development in the organizational environment. Journal of Cleaner Production, 95, pp.1-15.
Parente, D. and Strausbaugh-Hutchinson, K., 2014. Advertising campaign strategy: A guide to marketing communication plans. Cengage Learning.
Scott, D.M., 2015. The new rules of marketing and PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly. John Wiley & Sons.
Tuten, T.L. and Solomon, M.R., 2014. Social media marketing. Sage.