Marketing Strategy Assignment: Product Launch By Toyota

Question

Task:
Write a marketing strategy assignment containing an overview of your marketing strategy plan with clear examples and mock-ups of the creative ideas which includes information about each part of the marketing mix strategy.

In addition, as part of your research into the market, you noticed that there is some volatility and changing trends in the macro- factors and other contemporary issues that are influencing the market right now and may impact on the success of your marketing strategy so therefore you will also need to address a key issue or trend in your report.

To complete this task you need address the following four components:

Briefly explain the theoretical concepts elements of the extended marketing mix (theory of the Seven Ps)

Identify and briefly outline one key market trend or societal issue (such as macro factors i.e. law, technology etc, corporate social responsibility, environmental issues, ethics and diversity) that is likely to affect your marketing strategy and explain its potential impact; and

Finally, present an outline of ideas for a marketing campaign (based on all the components above) which contains specific and well justified recommendations for the business’s marketing strategy including recommendations for each element of the marketing mix. Remember to consider how your recommendations create (or maintain) the business’s competitive advantage - given the target market and environment in which the business operates. Please include clear examples and a holistic mock-up of the creative ideas that contains all the elements of the marketing mix (e.g the mock-up should include details of product function/ price/ distribution etc) as part of your recommendations- make your product "stand-out" from the crowd.

Answer

Executive Summary
Purpose
This report on marketing strategy assignment focused on the company Toyota and conducted a marketing strategy review of its product named ‘Updated Camry’ which was recently launched with added features and upgrades in April 2021.

Customer Segment
The middle class families of Australia primarily consisting of a couple and one or two children are the prime target market of the company.

Marketing Mix Recommendations

• Product: The car is hybrid and has added safety features effective for families
• Price: Price Skimming Strategy
• Place: Dealership stores and e-commerce
• Promotion: Social media marketing
• People: Training and Development
• Process: Lean management and UNSDGs
• Physical Evidence: Creation of Toyota Store

Findings
The holistic mock-up ideas are innovative and includes different strategies such as the creation of hyperlinked poster, including graphs for comparing price surge and decrease of the product, celebrity endorsement and more. It can be said that the mock-up ideas that promotes Toyota’s rich history and their collaboration with popular names would lessen the threats looming from ethical and diversity issues from the corporate sector of Australia.

Conclusion
The review enabled in emphasising on the importance of innovation and how companies can obtain success in their business operations accordingly. However, a review of their existing strategies are required from time to time because of the constantly fluctuating market and consumer tastes.

1. Introduction
1.1 Company
This report intends to focus on the company Toyota, which started in the year of 1937 and begin its business operations in Australia in 1963, and it has enabled the company to cement its position in the Australian market as one of its leading automotive companies (Toyota.com.au, 2021). Over the years the company has continued to expand all of its invention into different countries. For the year of 2021, Toyota has been expected to launch four new cars in the Australian market known as New Kluger, Mirai FCEV, Updated Camry and 300 Series LandCruiser among which the former three would be launched in the second quarter and the latter in year’s end (Carexpert.com.au, 2021).

1.2 Product/Location
The product that has been chosen for marketing review is the ‘Updated Camry’ because an updated version of their most popular Sedan includes hybrid power and would be open for different families for purchase. According to Carexpert.com.au. (2021), the focus is mainly on the ability to provide hybrid power, increased fuel consumption of 6.8litre/100 km and the major changes in its current safety measures such as the inclusion of driver assists, road sign assist, emergency steering assist and intersection turn assist.

Figure 1: The Updated Camry Model
(Source: Carexpert.com.au, 2021)

The updated model has been chosen because the specifications and new upgrades have to be made popular among its existing customers. The marketing strategy of this product should be effective because the old model was popular among the Australian population and contributed to its massive sales back in 2020.

1.3 Consumer
The use of demographic segmentation would be considered by Toyota to determine the definitive target market for its marketing process. The use of demographic segmentation primarily refers to the categorisation of target market depending on variables such as age, education, income range, class and more.

Figure 2: Middle Class Australian Family
(Source: Whiteford, 2019)

The ideal target market for Toyota would be the Australian middle class family for attracting them towards the sale of updated Camry. According to Whiteford (2019), in Australia a middle class family consisting of a couple with two children earns between AUS$ 66,000- AUS$ 177,400. Thus, it makes them ideal customers for Toyota who can successfully afford the car and its added safety features would be beneficial for the family and its children. The marketing mix would be framed depending on the characteristics of the middle class families of Australia.

2. Extended Marketing Mix
2.1 Product
According to Thabit & Raewf (2018), the product element refers to the goods and services provided by an organisation and can also be addressed as something which is an advantageous pack that the marketer of a company provides for the customers. The product can be both tangible and intangible, and in case of the later it is addressed as service. Some of the key factors that the customers consider while buying a product consists of its ability to address customer needs, expectations, warranty period, features and more. The product is the integral component of a marketing mix. In case of Toyota, the updated Camry is the product that has to be marketed to its identified target market.

2.2 Price
Price is the second most important element in marketing mix and it is often considered a difficult job to fix a rate for a product or service. According to Thabit & Raewf (2018), many factors have to be weighed in before the finalisation of a price and it consists of the product demand, costs involved in marketing and manufacturing, government restrictions, competitor’s charges and more. Meanwhile, the most critical factor is to correctly assume how the fixated price would enable in generating profitability for a company. Some of the notable strategies that are used by several companies consist of price skimming, competitive pricing, penetration pricing and more. Toyota has to choose from the mentioned strategies to fix a price for the suitable marketing of the product.

2.3 Place
The element of place is related to ensuring that the products are accessible to the designated customers of the company at a suitable place. It indicates that the company has to decide on the areas from where the products would be easily available for purchase for the customers. According to Wu & Li (2018), there exists a chain of people and specific organisations in the form of wholesalers, retailers, distributors and others who have the liberty to make the products available for customers. The company also has the option to sell directly to the customers. Toyota can opt for any form of distribution to make their products available for the Australian customers.

2.4 Promotion
Promotion is identified as one of the strongest elements of the marketing mix strategy and it consists of actions such as publicity, public relations, demonstrations, launch event, fairs, advertisements and more. The publicity generated from promotional activities are responsible for generating attraction for the customers (Camilleri, 2018). The promotional activities of an organisation also depend on its marketing objectives and advertisement is considered to be the strongest and traditional method. However, in the recent times there has been an increase in the use of social media marketing and other digital forms of promotional activities that is prominent in attracting young demographic. Toyota has to employ a promotional activity that can easily attract the middle class population towards the sales of their products.

2.5 People
The people refer to the employees of an organisation who are involved in different departmental works associated with a product and its selling, distribution and marketing (Sudari et al., 2019). The people refers to the individuals who are directly or indirectly associated with the business elements of the company. For a company, the ability to employ and retain highly skilled employees guarantees them of the necessary success that enhances the profitable opportunities for the company.

2.6 Process
The process element of the marketing mix strategy refers to the actions that are utilised by the company personnel to deliver the products to the customers (Mahmoud et al., 2017). Some of the key areas of assessment for the company officials consists of sales funnel, the payment systems, the distribution procedure of the company and the ability to manage good customer relationships. There are different teams and individuals involved in addressing these factors but each of them have an important role to play in assuring good service delivery timing.

2.7 Physical Evidence
The element of physical evidence consists of two forms and that is the evidence of the purchase provided by the company and the confirmation of a brand’s existence (Liu et al., 2017). The store of a brand accounts for a confirmation of brand’s existence and receipts, brochures and others counts for purchase existence. Here, the validation received by the company is an important aspect for the brand. Toyota has its distribution stores and its popularity in Japan is a proof of the brand’s existence in the world.

3. Market Issue
3.1 Ethics and Diversity
As mentioned in Dick (2019), wage theft has been a prominent practice in many of Australia’s corporations and due to their malpractices many changes have been initiated by the government, which can make it difficult for the upcoming businesses to continue their operations. Many of the companies have been found to have owed each one of their employee up too AUS$100,000. The practice of wage theft is completely unethical because it is considered as a form of exploitation that perpetrates differentiation of various forms and is an ethics issue. Sdan.org.au (2020), mentions that wage theft has a negative impact on the workers and the economy because it threatens the good will of genuinely good employers and then the economy is affected because growth, profitability, minimum wage are all drivers of economic development, which are negatively impacted. Most of the corporations in this condition have started conducting their business operations with a radical structuralist perspective. Tafon (2018), mentions that the theory of radical structuralism suggests that an organisation is committed to radical change, emancipation that propagates structural conflict and various modes of oppression and deprivation. The companies operating in Australia are implementing this perspective to devoid workers of their deserved wage for facilitating their profit vendetta.

On the other hand, Nip (2018), mentions that there is a lack of representation and diversity in the senior position of majority of the corporations operating in Australia which is a diversity issue. There is a lack of cultural diversity in business leadership which fails to incorporate diversity and inclusivity in an organisation. There is a possibility that many of the senior leaders cannot act for the best interests of an organisation and its diverse workforce if the senior board itself is not sufficiently diverse. The leadership of every corporation continues to preach about inclusive and diverse workforce but the methodology of addressing their adversities are still not effective. Thus, it can be said that ‘ethics and diversity’ can be extremely challenging for the major corporations operating in Australia.

3.2 Impact of ‘Ethics and Diversity’ Issue on the Business of Toyota
The ethics and diversity issue would have a massive impact on the business of Toyota in Australia. As it has been previously discussed, law-abiding employers would be subjected to massive scrutiny by employees and authorities alike in this situation. According to Hardy (2020), the penalties and criminalisation of wage theft is a good proposition for guaranteeing the rights of employees but at the same time if minimum wages are compromised due to administrative errors then the chances of facing criminal charges would increase. Even in the case of unintentional errors, Toyota would be subjected to mass criticism and penalties. As mentioned in Oir.qld.gov.au (2021), the employers engaging in wage theft can be imprisoned for 10 years and may have to pay hefty fines and settlement charges to the employees.

Meanwhile, diversity is on the verge of becoming a major issue among the leadership of the company and among the workforce as well. According to Reynolds & Lewis (2017), the lack of diversity and inclusivity among the senior leadership team of Toyota would lack the ability to attract a diverse workforce and creative ideas, which would be inefficient in attracting different groups of people and maintaining innovation. The lack of such practices may encourage Toyota to do the same where the company may be subjected to accusations of racism and bigotry.

4. Recommendations
4.1 Product
The functionality of ‘Updated Camry’ from Toyota as a hybrid car in a homogeneous market mainly because of its key features and safety that are not usually found in other company’s similar models. The peak power of the car is 160kW and it has a 2.5 litre four-cylinder petrol engine and the wheels are driven by an e-CVT (Carexpert.com.au, 2021). However, it is the safety issues addressed by the car model and its higher-end versions that make it extremely desirable for the target market of middle class families. The safety features consist of lane-departure warning, adaptive cruise control, reversing camera, blind-spot monitoring, parking sensors and more. The best part about the Updated Camry’s safety impact is that it scored 15.16 out of 16 on the frontal impact test making it extremely secure for a family.

However, the features of the ‘Updated Camry’ can be highlighted more with the creation of a hyperlinked poster on the official website of Toyota Australia. For example, the hyperlinked poster would enable the audience to click on any part of the car presented in poster and it would redirect to a separate link about the intricate and added features of the product.

4.2 Price
The pricing strategy that can be used by Toyota for this product is ‘price skimming’ strategy. According to Du & Chen (2017), the price skimming strategy refers to the method where the company sets up high prices when the product is introduced in the market and gradually lowers it as more competitors start emerging. As mentioned in Carexpert.com.au (2021), the following has been identified as the price of ‘Updated Camry’:

• 2021 Toyota Camry Ascent petrol: $30,990 (+$3300)
• 2021 Toyota Camry Ascent hybrid: $33,490 (+$3500)
• 2021 Toyota Camry Ascent Sport hybrid: $36,290 (+$5100)
• 2021 Toyota Camry SX hybrid: $39,190 (new)
• 2021 Toyota Camry SL hybrid: $46,990 (+$6000)

Depending on the net income of a middle class family consisting of a couple and two children, it would be effective for the family to afford both Toyota Camry Ascent Petro and Hybrid cars. However, the price can be further decreased after 7-8 months, which would be contribute in increasing the sales. For example, the price surge and decrease would be visible on the hyperlinked poster included in the website of Toyota. Additionally, a graph would be added that depicts the changes in prices alongside the hyperlinked poster. The graph would also enable the viewers to compare the price changes that have occurred since the launch of the product.

4.3 Place
Toyota is known for selling their products via dealers and this practice of distribution would continue. However, one new opportunity that can be explored by Toyota is its involvement in e-commerce. The indulgence in e-commerce would only be feasible when the consumer confirms the purchase of the product. A live demonstration can be done through online to provide the specifications of the product. The participation in e-commerce would increase the feasibility of the company.

4.4 Promotion
The social media participation of the company would alleviate its status among the varied range of its target market. According to Li, Larimo & Leonidou (2021), the use of social media marketing is cost-effective and innovative. Toyota Australia already has posted about its ‘Updated Camry’ on Instagram but sufficient buzz was not generated among their followers.

Figure 3: Instagram Post of Toyota Australia about ‘Updated Camry’
(Source: Instagram.com, 2021)

Instead of a post, the creation of a video that has a popular Australian celebrity would garner more buzz around the brand and would attract consumer attention. The inclusion of popular celebrities such as Keith Urban or Nicole Kidman and them using the Updated Camry would attract more consumers.

4.5 People
It is important that the concerns of both internal and external stakeholders of Toyota has been effectively addressed. The company needs to provide training to its sales department and marketing department to prepare them for the emerging trends in the market. This way the company would find it easier to address the concerns of their target market and conduct their business operations accordingly. For example, the training and development programme should have significant practical application such as making sales calls for the sales department personally to B2B clients and for marketing department it would be personally communicating with the consumers.

4.6 Process
The process of Toyota is extremely sophisticated due to the application of their lean management model. The use of lean management enabled the company to monitor its waste distribution and prevent scarcity of resources, and it is also credited as the company that introduced the concept of ‘lean management’ (Kamarudin & Nakanishi, 2017). However, the company address more sustainable concerns with the implementation of UNSDGs (United Nation Sustainable Development Goals). The ability to achieve any one of the goals would already improvise the condition of the company for enhancing its sales. This would improve the company’s relation with all of its stakeholders. It is recommended that Toyota assures the implementation of goal 5 (gender equality), goal 8 (decent work and economic growth), goal 9 (industry infrastructure and innovation) and goal 11 (sustainable cities and communities) for better marketing of the Updated Camry.

4.7 Physical Evidence
The tangible presence of Toyota can be created with the initiation of its own store in Australia. The company has only operated and sold their products via dealership stores. The creation of their own store would increase their validation in the market and would significantly address customer grievances accordingly. This would also be a good way to maintain good relationship with customer’s post purchase. The store must enhance the visibility of Toyota’s history and success stories, which would be effective in acquiring customer validation.

5. Conclusion
This report permitted in reviewing key strategies for Toyota and its newly launched ‘Updated Camry’. The updated models are difficult to be marketed to the customers because the point of differentiation is barely witnessed. Hence, the added features and price range have to be highlighted as a part of marketing strategy. The recommendations provided would ensure that the company has attained a significant amount of success while operating in Australia. The innovative marketing strategy would further attract the attention of Australian middle class families to its products. The involvement of all the company’s departments would be quintessential in achieving the sales objective of the brand and its ‘Updated Camry’ model.

6. List of References
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Dick, S. (2019). Shame File: The big businesses that ripped off workers in 2019. Retrieved from https://thenewdaily.com.au/news/national/2019/12/29/wage-theft-businesses-2019/

Du, P., & Chen, Q. (2017). Skimming or penetration: optimal pricing of new fashion products in the presence of strategic consumers. Annals of Operations Research, 257(1), 275-295.

Hardy, T. (2020). Criminal penalties for corporate wage theft are appealing, but won't fix the problem on their own. Retrieved from https://www.abc.net.au/news/2020-02-20/criminal-penalties-corporate-wage-theft-wont-solve-problem/11985252

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Kamarudin, K. S., & Nakanishi, H. (2017). Lean Construction Management: a Toyota Way for Organisational Learning and Participation. MALAYSIAN CONSTRUCTION RESEARCH JOURNAL (MCRJ), 40.

Li, F., Larimo, J., & Leonidou, L. C. (2021). Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science, 49(1), 51-70.

Liu, Y., Li, K. J., Chen, H., & Balachander, S. (2017). The effects of products’ aesthetic design on demand and marketing-mix effectiveness: The role of segment prototypicality and brand consistency. Journal of Marketing, 81(1), 83-102.

Mahmoud, T. O., Ibrahim, S. B., Ali, A. H., & Bleady, A. (2017). The influence of green marketing mix on purchase intention: The mediation role of environmental knowledge. International Journal of Scientific & Engineering Research, 8(9), 1040-1048.

Nip, G. (2018). The lack of cultural diversity in Australian business leadership: Lessons from AMP and the consequences for corporate governance and business performance. Retrieved from http://www.aala.org.au/resources/Documents/The%20lack%20of%20cultural%20diversity%20in%20 Australian%20business%20leadership%20-%20By%20Gisela%20Nip.pdf

Oir.qld.gov.au. (2021). Wage theft and wage recovery information for workers. Retrieved from https://www.oir.qld.gov.au/industrial-relations/wage-theft#:~:text=Wage%20theft%20is%20a%20criminal,up%20to%2010%20years%20imprisonment.

Reynolds, A., & Lewis, D. (2017). Teams solve problems faster when they’re more cognitively diverse. Harvard Business Review, 30.

Sdan.org.au. (2020). Wage Theft Hurts Workers And Economy. Retrieved from https://www.sdan.org.au/news/wage-theft-hurts-workers-and-economy

Sudari, S., Tarofder, A., Khatibi, A., & Tham, J. (2019). Measuring the critical effect of marketing mix on customer loyalty through customer satisfaction in food and beverage products. Management Science Letters, 9(9), 1385-1396.

Tafon, R. V. (2018). Taking power to sea: Towards a post-structuralist discourse theoretical critique of marine spatial planning. Environment and Planning C: Politics and Space, 36(2), 258-273.

Thabit, T., & Raewf, M. (2018). The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4).

Toyota.com.au. (2021). Toyota Australia. Retrieved from https://www.toyota.com.au/corporate/toyota-motor-corporation-australia

Whiteford, P. (2019). A snapshot of life in the middle class. Retrieved from https://www.canberratimes.com.au/story/6204673/a-snapshot-of-life-in-the-middle-class/#:~:text=the%20income%20distribution).-,In%20Australia%20that%20translates%20into%20 after%2Dtax%20income%20of%20between,minimum%20wage%20to%20sneak%20in.

Wu, Y. L., & Li, E. Y. (2018). Marketing mix, customer value, and customer loyalty in social commerce: A stimulus-organism-response perspective. Internet Research.