7ps Of Toyota Innova

Marketing Mix of Toyota Innova

Submitted By: Pankaj Pal (42) Suraj Bansal (65) Sumit Minj (63) Vishal Gupta (68) Neeraj Kumar (39)

Table of Contents MARKETING MIX – AT A GLANCE MARKETING MIX – DIAGRAMMATIC VIEW

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Marketing Strategy of Toyota:

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Marketing Mix of Toyota Innova

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Product

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Pricing

9

Place

10

Promotion

12

People

14

Process

16

Physical evidence

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References:

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MARKETING MIX – AT A GLANCE The Marketing mix is generally accepted as the use and specification of the four p's describing the strategic position of a product in the marketplace. One version of the origins of the marketing mix starts in 1948 when James Culliton said that a marketing decision should be a result of something similar to a recipe. This version continued in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term 'Marketing-Mix'. A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which would see wide popularity. The four Ps concepts are explained in most marketing textbooks and classes. The set of controllable tactical marketing tools, product, price, place and promotion - that the firm blends to produce the response it wants in the target market: ●

Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system.

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Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

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Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

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Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items 3

distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. ●

Physical Evidence​​- Physical Evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following buildings, equipment, signs and logos, annual accounts and business reports, brochures, your website, and even your business cards. ​In the service industries, there should be physical evidence that the service was delivered. Additionally, physical evidence pertains also to how a business and it's products are perceived in the marketplace.It is the physical evidence of a business' presence and establishment. A concept of this is branding. For example, when you think of “fast food”, you think of McDonalds.When you think of sports, the names Nike and Adidas come to mind.You immediately know exactly what their presence is in the marketplace, as they are generally market leaders and have established a physical evidence as well as psychological evidence in their marketing.

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People​​- This refer to people of both target market and people directly related to the business.Thorough research is important to discover whether there are enough people in your target market that is in demand for certain types of products and services.The company’s employees are important in marketing because they are the ones who deliver the service. It is important to hire and train the right people to deliver superior service to the clients, whether they run a support desk, customer service, copywriters, programmers…etc.When a business finds people who genuinely believe in the products or services that the particular business creates, it's is highly likely that the employees will perform the best they can. People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the individual needs of the person consuming it.

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Process- ​There are a number of perceptions of the concept of process within the business and marketing literature. Some see processes as a means to achieve an outcome, for example – to achieve a 30% market share a company implements a marketing planning process. However in reality it is more about the customer interface between the business and consumer and how they deal with each other in a series of 4

steps in stages, i.e. throughout the process.The systems and processes of the organization affect the execution of the service.So, you have to make sure that you have a well-tailored process in place to minimize costs.It could be your entire sales funnel, a pay system, distribution system and other systematic procedures and steps to ensure a working business that is running effectively.Tweaking and enhancements can come later to “tighten up” a business to minimize costs and maximise profits.

MARKETING MIX – DIAGRAMMATIC VIEW

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Marketing Strategy of Toyota: Marketing strategy is the course of action that the organisation intends to take, so as to be able to achieve the marketing objectives, (Lowe, Doole, 2008). The marketing strategy of Toyota differs according to the market requirements in different geographic locations. The Marketing strategy of Toyota is the differentiation strategy, as it aims at differentiating its products from the competitors’ products. The competitors like Ford are trying to acquire market share by using same global marketing strategy, whereas Toyota adopts specific marketing strategy for each market. Ford manufactures one type of car at a time, and markets it globally, whereas Toyota manufactures products to be sold globally, as well as products to be sold in specific country of operations. The products are manufactured keeping in mind the requirements of the local customers. In a country like Saudi Arabia, some of the global models may not be effective, due to difference in climate and environment. Therefore, Toyota aims to satisfy its customers by providing them with specific products that suits their customers, (Toyota SA, 2012). The differentiation strategy adopted by Toyota helps it in manufacturing products which are different from the competitors’ products. The differentiation strategy allows Toyota to price its products according to its own wish, as its products are different from the competitors’ products. The marketing strategy of Toyota has been successful in acquiring the market share, as it has been able to provide products according to the needs of the customers. The marketing objectives of Toyota in UK as well as Saudi Arabia are achieved due to different marketing strategies adopted in different countries, (Toyota, 2012). On the other hand, it is also seen that the marketing strategy of Ford to sell same product globally has resulted in failure, as it incurred losses, (Ford, 2012). This emphasises that the marketing strategy of any company should be set according to the local market, and one strategy cannot fit all the geographic locations. Thus, it can be said that the marketing strategy plays a vital role in the success of Toyota, as it adopts different strategies in different countries of operations. The differentiation strategy adopted by Toyota is helpful in increasing the sales, and achieving the marketing objectives. .

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Marketing Mix of Toyota Innova Product Toyota Innova Crysta has an accommodation capacity for 8 people. The Innova differs from the straight designs of Tata Sumo and Qualis and is instead more of a curved design. The interior of this car is designed keeping comfort in mind with spacious interiors. The exterior of the car too includes fog lamps, rear lamps, 3D grill etc. Safety has been given special attention in Toyota Innova with several measures in place. It is available in both Petrol as well as the diesel model and is also available in 5-6 different colours. Toyota provides their customers with both tangible and intangible products ranging from cars to warranties. A product of high quality is usually self-marketed, and this is what makes Toyota Crysta so desirable. Toyota has nineteen car models, which are further broken down into different categories ●

Passenger – comprising of small, medium size, and large vehicles. Aurion, Yaris, Camry, Tarago, Corolla and Rukus

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SUVs & 4WD– Kluger, Rav4, Parado and Landcruiser 200

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Hybrid – Prius and Camry

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Commercial – HiAce, Coaster, Landcruiser 70 and HiLux.

Customer Interest tops the list of priorities for Toyota, and hence, they have a ​Research Center totally dedicated to gathering data on the consumer expectations from Toyota. By 2005, they had invested 22.2 million in their research centre. Toyota has put together the Hybrid

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product line to deal with the increased prices of gas. In this way, they built customer relationships and loyalty. Toyota also offers gears and other car parts. Besides these, they provide e-Toyota, biotechnology, marine, financial services, warranties that have various mileage coverage options ranging from 36,000 to 1, 00, 00 miles, road assistance and car services. Also, to deal with rising prices of gas Toyota came up with the Hybrid product line. The first hybrid car was the Toyota Prius Model introduced in Japan in 1997 and in 2001 worldwide. Camry and Highlander were later introduced in their Hybrid product line. Toyota Innova Crysta Key Specifications

Key Highlights ● ● ● ●

Electric Sunroof with anti pinch Logo Projection Lamps on ORVMs 18" Diamond-cut alloys Industry-first Ecosense Technology 8

Toyota Innova Crysta Mileage Fuel Type

Transmission

Engine Capacity

Mileage

Petrol

Automatic

2694 cc

10.75 kmpl

Diesel

Manual

2393 cc

15.1 kmpl

Petrol

Manual

2694 cc

11.25 kmpl

Diesel

Automatic

2755 cc

14.29 kmpl

Pricing

Toyota has always maintained quality and affordable prices for their vehicles. Their main objective is to make profit by allowing credit payments to their customers at low interest. The pricing strategy in the marketing mix of Toyota is based on competition, segment, geography and demand. Their prices are ​flexible to changing market conditions and prices of competitors thus affecting their selling prices. The price range of their cars changes according to the model, add options and make. Toyota’s profits mainly increase because of the pricing and features offered with their products. They have always stood by the company’s mission of satisfying customers’ needs and wants by producing high quality automobiles at affordable prices. Such affordable prices also help the brand in their marketing.

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Toyota became the second largest two-carmaker company in the year 2003. Due to their innovative designs and heavy investments in promotional activities, they have enticed customers all over the world. They built high quality vehicles and price them moderately.The selling price of any product is usually determined by the ​cost ​price and the ​profit taken together. Any increase in the cost of production is directly passed to the customers in terms of selling price. However, Toyota has a different approach. Even though the formula is same they use it slightly differently making a huge different. Instead of calculating the selling price, they calculate the profit. Thus, they go by selling price-cost price = profit. They believe that it’s the market mechanisms and the consumers who determine the selling price. T ​ hey also give utmost attention to waste elimination. The profit of the company has increased over time due to the high quality and low cost vehicles. Toyota Innova is priced somewhere at ​8-12 lacs​​. It has strong competitors like Tata sumo and Qualis which are in the lower range (6-8 lacs) and now Mahindra Xylo. Thus the pricing is definitely competitive with the extra features and comfort which Toyota Innova has at its disposal.They use low cost and differentiation to have a competitive edge in the automotive industry. They differentiate their product on the basis on quality, technology and superior design.

Place Toyota Innova is available for distribution across the country through its dealership network and retail outlets. Toyota cars seem to be everywhere you look. Dealerships and retailers are the two principal places Toyota uses to distribute its products. Customers can find with ease the find numerous dealerships and retailers all over the world. But the largest chunk of the sales is attributable to the dealerships’ efforts. The company supplies its accessories and parts through

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independently owned auto spare stores. And there are millions of such businesses dotting the world’s economic landscape.

Toyota relies heavily on the revenue its dealerships generate. But the company would not be where it is without the billions of dollars rolling in from the private auto spare stores.

Additionally, the internet is increasingly becoming a place where Toyota’s customers all over the world can buy products. It is hard to find a dealership that lacks a strong online presence.

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Promotion

When it comes to promotion and getting one’s name out there, Toyota goes all out and wins. The company consistently devises and executes various strategies and specific activities that aim to saturate the auto market with “Toyota messages.” Toyota promotes itself and its products through public relations, personal selling, advertisements, direct selling, and sales promotion.

Toyota marketing strategy: Toyota’s promotion function Ø Personal Selling: Salespeople do personal selling at the various dealerships around the world. Most people are familiar with the typical, ever-smiling car salespeople at such locations. They

are

excellent

at

explaining

or

demonstrating why a particular model would work for a customer. Toyota’s Personal selling

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strategy is hugely successful if the humongous cumulative dealerships’ sales are anything to go by.

Ø Advertisements: Toyota really goes to town on newspaper, TV, and online ads. The brand ambassador of Toyota Innova was none other than Virat Kohli, probably one of the most effective brand ambassadors in India. With his diverse style, Virat Kohli promoted Innova mainly for its spacious interior.

Ø Public Relations: Toyota understands and appreciates the incredible power of “free press” that is public relations. The company runs various programs that demonstrate Toyota’s commitment to corporate social responsibility. Studies have shown that customers are increasingly choosing to support businesses people Some

that

and of

care

about

not just profits.

the

programs are

Togethergreen and Meal Per Hour. Togethergreen supports environmental initiatives while Meal Per Hour demonstrates Toyota’s concern for the hungry. “Acts of kindness” encourage consumers to form supportive mental associations with the businesses involved.

Ø Direct Sales: Recently, Toyota started testing the effectiveness of a solution that potentially offers its customers convenience and saves them time. It is a web-based system where prospective customers would log in and order a product from anywhere. The company would

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then deliver the product to the customer’s preferred location. One wonders whether the success of the proposed system could lead to job losses.

People The company is keen to empower its entire workforce in the service and product line. This has made its workers become creative and customer friendly. As a result, it has boosted the company’s self-image and its ability to respond to consumers’ expectations. In a company, the managing director and the front line staff are some of the individuals who are relied upon to promote the image, products and services the company offers. According to Rajasekera, it is essential to have the right people to drive a business forward. Management in Toyota has

established the necessary supportive structures that have witnessed the growth of its products and offerings. Its leadership role in the provision of the necessary management practices that lead to the best management practices in organizations. It is in this regard that the company assimilated its widely known Toyota Company Philosophy that calls for long-term critical thinking as a basis for management decision making at all times. Therefore, its management structure

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has been greatly devolved to the lower levels where it has a direct link with employees to monitor how they deal with clients. Toyota values its people. The company continually trains and empowers its people. Their workforce possesses up-to-date knowledge in auto manufacturing technologies. Employees seeking a comfortable environment in which to grow their careers should look elsewhere. A culture of restlessness, challenges, and discomfort reigns. The company wants its workers to face their challenges and create practical solutions to deal with the problems. Toyota controls an army of solution-oriented employees. Most of their competitors are stuck with the typical problem-spotting workers. The people factor is perhaps the most critical factor as far as the company’s success secrets are concerned. Efficiency without Good People Fails Toyota is convinced that efficiency in the absence of the right people to drive it utterly fails. Here, people are more than “hands” that get things done. The company views them as knowledge workers who strive to attain Chie — knowledge or wisdom. Everyone’s ideas matter. Whether you are a C-suite employee or a factory-floor worker, the company values your ideas.

People are a central factor to how Toyota runs its business. The company invests enormously into its workforce through training and talent development. While Toyota pays great salaries to its employees, the work environment is not what one would call comfortable. It is a challenging place that forces people to think and create solutions that solve the company’s problems. People are probably the automaker’s number-one factor that sets it apart from its competitors. Toyota runs its business on the premise that efficiency combined with good people produces excellence. Every person working for them is a dedicated soul who works hard to attain Chie — Japanese for Wisdom or knowledge. At Toyota, everyone’s ideas matter. And suggestions can originate from any place, whether that is the corner office or the factory floor.

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Process Toyota has embraced a lean production model hence it is able to produce just-in-time products. Proper management has reduced wastage and production cost thus increasing efficiency. This has enabled the company to capture a huge market share. The company remains committed to the lean manufacturing approach. Toyota abhors waste. A lesser company would have proceeded to something else after the roaring success this company has seen. The carmaker has no tolerance for waste and inefficiency. Anyone who wastes time, material or even scrap works for a different company, not Toyota. Their mantra seems to be “if it is working efficiently, make it work even better.” The result of such an approach to business management is enormous profits and perpetually sustainable operations.

Toyota hates waste and favours the lean manufacturing approach. The company remains firmly opposed to people and ideas that waste time, material or other resources. After attaining dominance, many companies tend to stop to celebrate their success. But Toyota has a different “mindset.” To them, anything that works excellently today needs to be working even better

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tomorrow. At that point, Toyota begins to look like one of the successful companies of the future.

Physical evidence Services, as we know, are largely intangible when marketing. However, customers tend to rely on physical cues to help them evaluate the product before they buy it. Therefore marketers develop what we call physical evidence to replace these physical cues in a service. The role of the marketer is to design and implement such tangible evidence. Physical evidence is the material part of a service. In most companies, the interaction between consumers and manufacturers ends when a business deal is made. However, Toyota has maintained a tangible presence and a stable dealership with its new and old clients. This has ensured that consumers still get services from the manufacturer when a need arises. Customers have gained confidence in the company and this has enhanced more sales.

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Like most people, you are aware of Toyota’s three-overlapping-ellipses logo. And it is not just another logo. It is a symbol that comes with loads of meaning. The ellipses are a symbol of the unification of Toyota’s products and their customers’ hearts. Also, the logo represents the company’s commitment to technological advancement as well as its limitless opportunities. The Toyota logo is unmistakable. There is little chance that a prospective buyer would confuse the brand with any other. Whenever the word Toyota gets mentioned, that meaning-packed emblem comes to mind.

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Toyota is easily identifiable by a logo that features three overlapping ellipses. The ellipses symbolize the “oneness” that exists between the hearts of Toyota’s customers and the carmaker’s products. The logo also reminds the corporation of the critical role technology serves in the grand scheme of things. The emblem makes the company’s dealerships, products, and staff easily identifiable. And customers get documentation that would always call to mind the buying experience relating to the product purchased.

References: 1. https://www.marketing91.com/marketing-mix-toyota-innova/ 2. https://prowriterz.com/blog/the-7ps-of-marketing-in-toyota-company/ 3. https://www.expertwritinghelp.com/blog/2018/05/22/free-essay-toyota-marketing-strategy / 4. https://myassignmenthelpdesk.com/toyota-marketing-mix-7ps-strategy/ 5. https://www.statista.com/topics/1893/toyota/ 6. https://businessresearch123.wordpress.com/2015/08/02/toyota-marketing-strategy/

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