Toyota: Repositioning The Brand in Europe (A)

7/23/2019 Toyota: Repositioning The Brand in Europe (A)

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P r e s e n t


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Repositioning Product in Europe

29111311 Haidir Afesina

29111363 Wirania Swasty

29111384 Chairunnisa Mirhelina

29111387 F X Kresna Paska

29111398 Aqsa Adhiperwira29111400 Fajar Liem


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Outline

Background

Timeline

Goal

Toyota in Europe


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Toyota Motor Company

established

1937

1960entered into Europe

in Scandinaviancountries, Belgium,

Switzerland

Entered intoGermany,

Austria, Ireland,

Iceland

1970

Mid -1970TMC Brussels wasestablished, then

renamed TMME(Toyota Motor

Marketing

Europe)


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Timeline until Millennium

entered intoCanada and

U.S, develop

first plant inUS

1980

1990

Entered into

Italy, Poland,

Hungry

announced

New

InternationalBusiness Plan

1997

2000

Toyotaembraced

Challenge2000


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Products Portfolio

Sedan

Trucks

Sports

car

Comp

Cars

4WD

Hi-Ace

Camry

Land Cruiser

Yaris Celica


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Toyotas 7 Guiding Principles

Honor the language and spirit of the law of every nation and undertake open and fair business activitiesto be a good corporate citizen of the world.

Respect the culture and customs of every nation and contribute to economic and social development

through corporate activities in their respective communities.

Dedicate our business to providing clean and safe products and to enhancing the quality of life

everywhere through all of our activities.

Create and develop advanced technologies and provide outstanding products and services that fulfill

the needs of customers worldwide.

Foster a corporate culture that enhances both individual creativity and the value of teamwork, while

honoring mutual trust and respect between labor and management.

Pursue growth through harmony with the global community via innovative management.

Work with business partners in research and manufacture to achieve stable, long-term growth and

mutual benefits, while keeping ourselves open to new partnerships.

The expansion was led by a set of criteria that Toyota employees reffered to internally


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Issues

market share in Western Europe (1998) only 3%

its goal to raise to 5% by the year 2005

different positioning and perception as a main

obstacle to growth

need to reposition the brand


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Competition Analysis

Toyota

28%

Nissan

17%Honda

14%

Suzuki

9%

Mitsubishi

8%

Daihatsu

7%

Mazda

6%

Fuji-Subaru5% Isuzu

0%

Imports

6%

Sales in Japan in 1998

Japanese car manufacturers facing new realities


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Europe Market Share

18%

12%

11%

11%11%

10%

6%

4%

2%12%

3% Volswagen

GM

PSA

Fiat

Renault

Ford

BMW

Mercedes-Benz

Volvo

JapaneseKorea

Ford & GMs market share declined

VW able to increase its share

Required carmakers

to be responsive to the market


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Japanese Manufacturers Positioning

in Europe

Lower income segments

Perceived as offering value for money

Lack distinctive brand images


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Objective of TMME

To oversee and coordinate Toyota's sales and parts distribution aswell as product planning activities

Mission:

Supplying the range of vehicles, parts, accessories and services to meet the

requirements of the South African and export markets that it services

Ensuring that products are of outstanding quality, value for money and instill

pride of ownership

Vision: Toyota will lead the way to the future of mobility, enriching lives around the

world with the safest and most responsible ways of moving people


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Challenge 2000

How to further reduce the cost of owning a Toyota

Cost of Ownership

How to improve customer satisfaction

Customer Delight

How to improve operational efficiency and profit margins of dealers

Network Development

Build Toyota into more desirable brand

Developing communicating strategies for repositioning

Brand Management


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1998, The company had topped Nissan's sales

in Europe for the first time ever,

but was still a weak spot only 3%,

whereas had secured over 10% in other

international markets (USA)

the market was mature and still dominated bylocal players.

different positioning and perception of the

Toyota brand across Europe as a main obstacleto growth.


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What explains Toyota s disappointing

market share in Europe?

Below average sales of Toyota

dealers compared with other

manufacturersLack of unique, distinct image.

Lack of brand personality

Lack of Production capacity in

Europe

Intangible brand is cold,

secretive, introvert, notcustomer focus

Domestic law for distributor

Trade Restriction

Lack of a strong dealership

network in Europe

European has strong

nationalism on brand

Internal

External


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brand managements role

PROMOTEthat Toyota is a brand that symbolizessustainable development and brands which are infusedwith the latest cutting edge technology.

CREATEan image that it is environment friendly and thelow emission technology with reduction in ownership costsand high residual values.

COMMUNICATEthat the company packaged as abrand that ensures safety and quality.

SUCCESSFULLY communicate these qualities tocustomer so it would create brand association andperspective about Toyotas performance, thus, increasesales.


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JAPANESE BRAND

Market research revealed that

Europeans were not very aware of

Japan and Japanese culture

fall prey to "Foreign Protectionism.

would not help Toyota to gainmarketing advantage to build a

manufacturing in Europe and

investing in the European Union.

this would give its competitors

plentiful opportunity to stereotype

Toyota brand that does not belongin Europe.

Learn from FORD. Fords success can

be attributed to the platform built

upon domestic brand and not an

American brand.


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Problem: Europeans are very different from the rest of the

world in regards to needs and desires as because ofadvance economies

The biggest area of concern was Toyota's tangiblebrand identitylow pride and weak design appeal.

Solution:

Need to identify specific market segments and thenbe in sync with these segments.

European brand


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Global or International Brand

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Germany

Italy

UK

France

Spain

Switzerland

Sweden

Portugal

Greece

Japanese Market Share Problem:

Not the best strategy

Every European country has

its own preferences andhave their own nationalchampions

Success in 1 country cant

be apply in another market sophisticated and prefer

automobile which canfulfilled their needs.


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Japanese Brand

European Brand

International Brand


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European Strategy

from Ex. 10 it can be seen that European

awareness of Toyota is very low with a very

low brand preference.

The Europeans like their car to be strong,

dynamic, friendly and basic.

However, Toyota is identified as a car

manufacturer that is modern and intelligent.

Brand Perception in European Market


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8%

1%

1%

22%

3%

2%

25%

4%

3%

38%

4%

3%

50%

6%

4%

50%

10%

5%

55%

12%

5.50%

58%

14%

7%

60%

9%

5%

European Awareness

European Consideration

European Preferences

Brand Perception in European Market

Ford Mercedes Peugeot BMW Audi

Citroen Nissan Toyota Honda


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Market Overview Belgium (98)

0

1

2

3

4Value for money

Style

Technology

EnvironmentReliability

Quality

Ownership

Appeal

Ford

Toyota

Volkswagen


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Market Overview Germany (98)

0

1

2

3

4

5Value for money

Style

Technology


Quality

Ownership

Appeal

Ford

Toyota

Volkswagen


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Market Overview U.K (98)

0

12

3

4

5Value for money

Style

Technology


Quality

Ownership AppealFord

ToyotaVolkswagen


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Brand Equity

Brand

Awareness

Promotion

Advertising

Create good

image

Increase

distribution

channel,

effectiveness

Brand

Loyalty

1 on 1relationship

CRM

Advertising

Brand

Association

Associateeach country

to associate

with what

customer

want and

need.

Perceived

Quality

Distributionchannel

Eco-friendly

Intelligent

Safety

modern

Proprietary

Asset

Productionline

efficiency

Strongdomestic

market


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More Desirable Brand

Th

ink Match the

segment market

Effectiveadvertising,promotion, and

public relation

Fix cold,

introvert, and

old fashionimage

F

eel

Create strongattachment

Centralizeddistribution

1-1 relationship

CRM

Act Environment

Friendly Car

Hydrogen fuel,Solar efficacy,other alt. fuel

Unique


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Problem Solving

Should abandon its traditional segment of

value seekers, move into higher income

segments

Should standardize its advertising approach

starting with the newest model, Yaris.

Should introduce new positioning


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Possible Implementation

Product development & production system

Adding features

Repositioning prices


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ThanksBIG

Documents

Toyota: Repositioning The Brand in Europe (A)