Martin A. Belascuain BSBA (Marketing) III BA 170 Marketing Management 1.

. Choose a brand (any product category) Toyota Motor Corporation Automobile Industry (Philippine Market)

2. Identify and describe the target market of the chosen brand using appropriate segmentation variables.

Gender

Income
500K and below

Size of Household
Single / Childless Couples 3-4 Members 4-5 Members More than 5 Members

Region / Location
Urban Areas

Age

Vehicle Type
Sedan

Use

Male

16 - 20

Commercial

Female

500K - 750K

Rural Areas

25 - 30

Mini-Van

Personal

750K - 1M

30 and over

SUV

1M - 2M

Pick-up Truck Full-Size Van

2M and over

Hybrid

Toyota's strategy enabled the company to produce vehicles for many different market segments and price ranges. In the Philippine market alone, Toyota offers 14 vehicle types for the consumers to choose from. From the stylish and modern appeal of the Toyota Yaris which aims the young market to the Toyota Land Cruiser designed for on and off road driving, the company identifies and satisfies different customer needs.

Its main product line is composed of passenger cars, sedans and SUVs. Each model has different variants to cater different customer budgets. Price ranges from approximately 600,000 pesos for a 5-seater Toyota Avanza to as much as 4,000,000 pesos for a high-end Toyota Land Cruiser. In any car market across the world especially in developing countries, the size of the family is always a priority in choosing a new car. It would be very unlikely to see a family of five to buy the newest 2-door coupe sports car. Toyota was able to provide and satisfy the different needs of these segments. Young professionals, childless couples or even students can choose from the wide range of sedans which includes the Yaris, the Vios, the Corolla Altis and the more expensive Toyota Camry. Big families and commercial organizations can choose from the different types of SUVs and Vans Toyota offers. From the spacious Fortuner and 4x4 Rav4 which can easily cater every need of a family with 5-7 members to the Toyota HiAce and Avanza which can be utilized for commercial uses such as public transportation. Toyota also addresses the different needs of customers depending on their region and location. Customers can choose from different variants of SUVs which are suitable for most types of rural terrains or the different types of cars that performs best in urban driving. As young as 16 years old, Filipinos are already allowed to drive as long as they can secure a permit from the Land Transportation Office. The young market can choose from the standard sedans that Toyota offers, while the more mature customers can choose from the different variants of 4x4 SUVs and pick-up trucks. Its brand is a household name. The company makes a wide range of vehicles for both private customers and commercial organizations, from the compact Yaris to the large HiLux trucks. The company also maximizes profit through efficient manufacturing approaches, thus Toyotas name is attributed to affordability without comprising quality. With the advent of technology and rocketing oil prices, Toyota also develops hybrid vehicles which has low fuel consumption and can utilize other forms of energy to power the engine, such as the Toyota Prius. 3. Conduct an in-depth evaluation of the chosen brand using two brand equity modes: 1) BRANDZ and 2) Brand Resonance Model BRANDZ Presence Despite being among the worlds top 3 car manufacturers, Toyota understands that in order to maintain its position and ensure the top spot they should try to attract new customers. Toyotas campaigns have focused on emphasizing the positive experiences of

ownership and vehicle quality. Its recent marketing slogan Moving Forward used on its TV advertisement shows Toyotas global expansion and ability to cater every customer need. Relevance Toyota became the worlds top car manufacturer by stressing quality and high performance but maintaining affordability. Toyota cars are known for their award-winning engine technology with high design and quality standards, aimed for high performance and responsiveness with a big focus on reducing emissions and saving fuel. Toyota has also endorsed the services of celebrities from a wide variety of ethnic backgrounds to complement their diversified marketing strategies. This has helped project entertaining and effectual advertisements for its diversified audience, thereby helping them increase brand equity. Performance - Toyota Brand is famous and familiar among the consumers in a large number of countries in the world. The brand has been successful in attaining the image of high quality and high performance due to its consistent and effective marketing performance throughout all these years. The company is able to produce high-quality and top performing cars, which are fuel efficient and low emitting. As a result, currently, the brand has been able to establish itself efficiently as one of the most popular brand names in the world. To maintain the high image of the brand, the company has always come up with various innovations in its respective business to outperform all its competitors. Advantage - Toyota has been a leader in environmentally friendly vehicle technologies, most notably the RAV4 EV and the new line, the Toyota Prius. Not only do consumers get a high quality and high performance car, they would also acquire a car aware of the environmental constraints, by offering low fuel consuming and low emission cars. Kaizen, it means 'continuous improvement', had been Toyotas principle that guides its pursuit of total quality. Toyota believes that nothing is so good that it cannot be made better. They always strive for constant improvement in everything they do. Bonding Loyal Toyota customers had established a cult-like culture. Different groups of Toyota owners had been established across the world. Because of this great following of the brand, Toyota clearly knows how to value its customers. This is evidently showed by its 2009 2011 vehicle recalls to replace its vehicles defective brakes and accelerators. A lot of analysts would argue that this bold move by Toyota to recall more than 8 million cars did not significantly affect the company reputation because of its emphasis on customer safety rather than profit making. Toyotas also commits to the customer throughout the whole experience and ownership of Toyota cars through its quality services.

Brand Resonance Model The brand Toyota had ensured its identification to satisfy every customer need. From practicality to luxury, it offers a wide range of cars to cater different customer segments. Toyota has high brand salience in the car industry because of that fact that it became a household name that almost everyone can know what Toyota is. Its cars are well attributed to high quality and high performance. Their sleek and modern design also associates the brand with being luxurious and elegance. Despite these associations, the brand also maintains its connotation to be an affordable car. Toyotas performance is well recognized by its top positions in independent customer satisfaction surveys and its numerous international awards and recognitions. Despite being an affordable car, Toyota also promises to satisfy its customers need for status and luxury with its well-designed cars. The fact that Toyota places as being the best car manufacturer in the world reflects the favorable judgments and feelings of customers toward the brand. When many people taught that Hybrid cars wont be effective in the market, Toyota Prius became the top selling hybrid car in the world. With almost 2 million hybrid cars sold in more than 50 countries. Toyotas intensity of brand resonance is well reflected after its wide car recalls from 2009 to 2011. With a total of 8 million vehicles recalled and amounting US$1.93 billion in cost of repair, the company only showed a minimal decline in sales, majorly in the United States, where Toyotas top competitor General Motors able to leverage on the situation. Despite the scenario, Toyota was able to preserve its large base of loyal customers. The great amount of the car recalls gave Toyota a favorable response from its customers as being a safety-oriented company rather than purely a profit making organization.