Toyota segmentation and introducing
- 2. TOYOTA Marketing segmentation assignment 02 M.Niroshan – 2017/BS/87 W.M.I.P.Bandara – 2017/BS/106
- 3. INTRODUCTION Toyota Motor Corporation : Toyota is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan. In March 2014 the multinational corporation consisted of 338,875 employees world wide and, as of November 2014, is the twelfth-largest company in the world by revenue. Toyota was the largest automobile manufacturer in 2012 (by production) ahead of the Volkswagen Group and General Motors. In July of that year, the company reported the production of its 200-millionth vehicle. Toyota is the world's first automobile manufacturer to produce more than 10 million vehicles per year. It did so in 2012
- 4. Segmentation It has segmented all the countries across the globe as its markets All of Toyotas vehicles speak to a different consumer segmentation Based on income, gender, life cycle stages, needs, desire etc. Vehicles are designed so as to attract on the basis of life style choices and specific attitudes Toyota uses a psychographic and behavioral approach to segmenting the markets targeting Targets on conscious customers who place an importance on the environment Targets individuals that wants to save as the gas pumps Targets individuals that care about safety, Quality, family etc.
- 5. Positioning Toyota works strategically to establish a firm position on the mind of their consumer. Their main motto is “moving forward” and “Pursuit of perfection”. With these mottos on their mind Toyota tries to develop their product up the quality of the consumer’s choice. Toyota positions its fuel efficient hybrid car- Prius as high tech solution to the energy shortage. “How far will you go to save the planet?” it asks to the consumers to make a great position on their mind and to think about the environment as Toyota believes their product is eco-friendly.
- 7. Geographical Segmentation Toyota operates many geographical areas, but pay attention to geographical needs & wants. They segment their market on the basis of world region , density of population & Climate. On the world region they segments their market for Japan, North America, Europe, Asia, others. Toyota would use plants in Thailand, Indonesia, Argentina and South Africa. These four main IMV production and export. bases supply Asia, Europe, Africa, Oceania, Latin America and the MiddlenEast with three IMV vehicles. And Also the dry & hot, cold climate has effects on their production. So they segments their cars for cold & snow-covered area & also for dry & hot area as well. For example, SUV cars are specially customized for running on snow covered area or on a desert.
- 8. Geographic Segmentation World Region or Countries Japan, North America, Europe, Asia, others Density Urban, Suburban Climate Dry & Hot, Cold
- 9. Demographic Segmentation Demographic factors are the most popular basis of the segmentation for the Toyota. Toyota segments their products on the basis of age, income, familysize, occupation and generations Age: Toyota produce their car from the age range 18-50+. People among these ages have different choices over the models of Toyota. For example people of age 18-30 purchase Toyota Supra. Family Size: Toyota also produces cars on the basis of family size. For example Noah & Voxy for 6+ members. Corolla. Income- For the people who has the income under 25000$ per year, Toyota offers D class cars like Allion, Corolla, Matrix, amry, Prius. For 25000-35000$ per year- Avalon, RAV4, Venza. For 35000$+, Occupation- Toyota has some business class cars like MarkII & Crown for businessmen. Normal Sedan cars like Yaris, corolla for employers. Some pickup trucks like Tacoma & Thundra for farmers. Generation- Toyota is basically producing their cars for the third generation. They also producing some Hybrid cars for the next generations like- Prius, Camry hybrid.
- 10. Demographic Age 18-50+ Family Size Single, 2members, 2-4 members, 4+ members Income(per year) Under 25000$, 25000-35000$, 35000$+ Occupation Businessman, Employer, farmers, Official, transporter Generation Third generation, Next Generation
- 11. Psychographic Segmentation People in the same demographic group can have very different psychographic make ups. That’s why Toyota also segments their market on the basis of psychographic factors like Social class and Lifestyle. Social class: People of different classes has different choices. That’s why Toyota segments their market on the basis of three social classes: Higher class, Upper Middle class and middle class. Life Style: Toyota offers highlander and FJ Cruiser to the adventurous people and cars like Avalon and Sequoia Psychographic Social Class Higher, Upper Middle, Middle, Lifestyle Adventurers, Luxurious, Formal,
- 12. Behavioral- Depending on the behavior of the customers, Toyota segments their market on the basis of Benefits and loyalty status. Benefits: Different consumer’s wants different sort of benefits from their products. That’s why Toyota offers three kinds of benefits to their consumers. They are durability, power and fuel efficient. Loyalty status: Consumers, who are highly loyal to the products of Toyota has a special place in Toyota’s segmentation. For example people of Asia are highly loyal to the products of Toyota. So this segmentation is highly profitable for Toyota.. Behavioral Benefits Durability, Power, Fuel efficiency Loyalty Status None, Medium, Strong, Absolute
- 13. Conclusion: The Toyota is leading company in the Japan and well reputed in the world automobile industry. The company mission is to build trust and confidence with customer by delivering outstanding quality products and service. The Toyota is targeting all segment of the market in world and producing differentiation and cost leadership products to get more market share of the automobile industry
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