Toyota Pricing Strategy and Branding
Toyota offers both products and services. The products offered by Toyota include cars, cars’ spare parts such as engines, electronics, batteries, stamping dies, air conditioning compressors, and many more. The company also sells material handling equipment such as forklifts. Finally, Toyota deals in textile machinery used to manufacture car seats and other materials. Toyota enjoys a positive brand reputation usually associated with its logo and symbols. The company has a log that is uniquely recognized by many vehicle enthusiasts. The unique red color has also contributed to its brand reputation and recognition. Toyota enjoys a positive brand association and is considered one of the most preferred brands globally.
The Toyota pricing strategy is based on competition, geography, segments, and demand. The prices are flexible based on the region and demands. Toyota prices its products based on regions; in some continents, the process may be lower to attract demand, while in other places, the prices may depend on competitor pricing. Toyota appeals to both price and quality buyers. Toyota has high-end cars such as Lexus and Prado, Land cruiser which prices differently due to the quality of the cars.
My pricing strategy for the Toyota cars would be based on quality and performance. This involves developing a price for all cars in a specific category and using that price globally. This will ensure Toyota gains equal revenues from all global markets and avoid price discrimination based on region (Dolgui & Proth, 2019). Cars in the same class may have different prices based on their features and performances. Toyota’s pricing strategy is effective since it is the leading seller of cars globally. The company is also competing with other luxury brands and has the upper hand in delivering luxury cars.
Dolgui, A., & Proth, J. M. (2019). Pricing strategies and models. Annual Reviews in Control, 34(1), 101-110.
Toyota Environmental Analysis
Toyota Inc. is one of the leading automobile manufacturers globally. The company has its headquarters in Japan and currently run warehouses and production assemblies in various regions such as Japan, United States and Europe (Colias & Rogers, 2022). It is the leading motor vehicle manufacturers in terms of global sales and the product range.
Finance and accounting affects marketing pans since departments are responsible for providing necessary funds needed for marketing and sales. The economics affects marketing plan since it helps the company determine the cost efficient marketing strategy based on economic and marketing condition. The management is responsible about marketing decision making and selecting the best marketing practice and sometimes the company cans elect the marketing plans without caring out financial implications.
Political factors: Toyota has global operations hence political stability in countries such as Africa and Ukraine is currently affecting its sales. The government implementation of ecofriendly practices is also affecting the sales of Toyota fleet that are mainly fossil fueled.
Economic: The economic conditions due to Covid 19, pandemic affected 2020 and 2021 sales. The value of Yen is weaker than the dollar hence Toyota fetches higher prices in Europe and America (Colias & Rogers, 2022). The rise of new market such as middle East is also influencing Toyota sales
Social: the increasing interest in hybrid and electric cars which is promoted buy sustainability culture is creating new opportunities for Toyota to invest in electric car segment (Mainwaring, 2018). Toyota already gains more sales from its hybrid cars.
Technological: The rise of e-commerce is helping Toyota gain more sales and reduce expenses related to warehousing and showrooms. It also creates a perfect avenue for marketing hence targeting many audiences at once.
Ecological: The climate change, the declining oil reserves and global emphasis on sustainability is creating new markets for Toyota hybrid and electric cars.
Legal: The increased adoption of intellectual property laws helps Toyota to protect its IPs from theft and earn more from them (Lahiri, 2021). Consumers laws also affects the company negatively and positively.
Colias, M., & Rogers, C. (2022, January 4). Toyota overtakes GM as Bestselling auto maker in U.S. WSJ.
Lahiri, A. (2021, October 14). Nippon steel alleges Toyota motor of patent infringement: WSJ. Yahoo Finance – Stock Market Live, Quotes, Business & Finance News.
Mainwaring, S. (2018, November 13). Purpose At Work: How Toyota is Driving Growth, Innovation and Impact. Forbes.