FACULTY OF ECONOMICS & MANAGEMENT

HOA SEN UNIVERSITY

LESSON:
PRICING STRATEGIES & TACTICS
Lecture: Nghiem Tan Phong

TOPIC: OVERVIEW OF TOYOTA

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06/2024

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 THANK YOU
First of all, we would like to send our sincere thanks to the teacher Mr. Nghiem Tan
Phong for taking the time and dedication to teach and support our knowledge during the
past time to complete this mid-term project.

Your support is extremely valuable to us, helping us overcome many difficulties

and achieve success in studying and research. I am especially grateful to you because:
- Dedication and enthusiasm: The teacher is always willing to take the time to
answer questions, guide you every step of the way and encourage you when you
encounter difficulties.
- Knowledge and experience: You have shared valuable knowledge and experience
with us, helping us expand my vision and improve my understanding.
- Advice and direction: Teacher's advice and direction have helped us determine our
own goals and development path.

We have learned a lot of useful and necessary knowledge, greatly supporting our
own professional skills. We promise to always try to study and practice so as not to
disappoint your trust.

We wish you health, happiness and success in your noble career.

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INSTRUCTOR VERIFICATION AND EVALUATION SECTION
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The teacher's evaluation part marks the test

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 TABLES OF CONTENTS
INTRODUCTION
1.1 WHAT IS THE TOYOTA BUSINESS?
1.1.1. Vision and mission
1.1.1.1. Vision
1.1.1.2. Mission
1.1.1.3. Relationship between Vision and Mission
1.1.1.4. Influence of Vision and Mission on Toyota's Marketing activities
1.1.2. Current status of marketing
1.1.2.1. Overview
1.1.2.2. Challenges
1.1.2.3. Opportunities
1.1.2.4. Toyota's Current Marketing Strategy
1.1.2.5. Evaluation
1.1.2.6. Recommendations
1.2. MARKETING TOOLS THAT BUSINESSES ARE USING
1.2.1.1. Communication Channels
1.1.2.2. Communication Effectiveness:
1.1.2.3. Examples of Successful Toyota Communication Campaigns:
1.3. EXTERNAL ENVIRONMENT
1.3.1. Micro environment
1.3.1.1. Customers
1.3.1.2. Competitors:
1.3.1.3. Suppliers:
1.3.2. Macro environment
1.3.2.1. Economic Factors
1.3.2.2. Political Factors
1.3.2.3. Social Factors
1.3.2.4. Cultural Factors
1.4. PAYMENT RISK
1.4.1. Types of Payment Risk
1.4.2. Impact of Payment Risk
1.4.3. Mitigating Payment Risk
2.1. MARKET SEGMENT
2.1.1. Market Segmentation by Consumer Characteristics of Toyota
2.1.1.1. Demographic Segmentation
2.1.1.2. Lifestyle Segmentation
2.1.1.3. Interest-Based Segmentation
2.1.1.4. Examples
2.1.2. Market Segmentation by Product Type of Toyota
2.1.2.1. Passenger Cars

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 2.1.2.2. Commercial Vehicles
2.1.2.3. Electric Vehicles:
2.1.2.4. Examples
2.1.3. Market Segmentation by Geographic Region of Toyota:
2.1.3.1. North America
2.1.3.2. Europe
2.1.3.3. Asia
2.1.3.4. Latin America
2.1.3.5. Africa
2.2. TARGET MARKET
2.2.1 Toyota's Target Market by Features and Benefits
2.2.1.1. Young Customers (18 - 35 years old)
2.2.1.2. Families
2.2.1.3. Environmentally Conscious Customers
2.2.1.4. Business Customers
2.2.1.5. Off-road Enthusiasts
2.2.2. Toyota's Target Market by Geographic Region
2.2.2.1. North America
2.2.2.2. Europe
2.2.2.3. Asia
2.2.2.4. Latin America
2.2.2.5. Africa
2.3. OVERVIEW OF TOYOTA’S MARKETING MIX 4Ps:
2.3.1. Product
2.3.2. Price
2.3.3. Place
2.3.4. Promotion
2.4 SWOT
2.4.1. Strengths
2.4.2. Weaknesses
2.4.3. Opportunities
2.4.4. Threats
2.5. POPs AND PODs
2.5.1. POPs (Points-of-Parity)
2.5.2. PODs (Points-of-Difference)
2.5.3. Utilizing POPs and PODs in Pricing Strategy
2.6. COMPETITORS
2.6.1. Comparison of Honda and Toyota Pricing Strategies
2.6.2. Comparison of Nissan and Toyota Pricing Strategies
2.6.3. Comparison of Hyundai and Toyota Pricing Strategies
REFERENCES

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THE REPORT

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CHAPTER I: OVERVIEW OF TOYOTA

INTRODUCTION
Toyota, a global automotive leader, isn't just known for reliable cars. They've also
mastered the art of setting prices that resonate with customers. This presentation will delve
into Toyota's strategic approach to pricing, exploring the tactics they use to achieve:
● Market Competitiveness: How Toyota positions their vehicles strategically within
the automotive landscape.
● Value Perception: How Toyota builds a strong brand image of quality and
reliability, justifying their pricing.
● Product Differentiation: How pricing strategies vary across Toyota's diverse
product range, from budget-friendly Corollas to premium Lexus models.
By understanding Toyota's pricing playbook, we'll gain insights into how a
successful automaker balances market forces, customer value, and profitability.

1.1 WHAT IS THE TOYOTA BUSINESS?

1.1.1. Vision and mission

1.1.1.1. Vision
Toyota's vision: "To become the world's leading automobile manufacturing
company, bringing customers the highest satisfaction through high quality products and
services, while contributing to the sustainable development of society."
Meaning of vision:
● Toyota's vision represents the company's commitment to customers, quality and
sustainable development.
● This vision inspires employees and helps Toyota attract and retain top talent.
● Vision also helps Toyota direct the company's strategy and business operations in
the future.

1.1.1.2. Mission
Toyota's mission: "To provide safe and reliable transportation for everyone,
everywhere in the world."
● Toyota's mission focuses on providing high quality products that meet customer
needs.
● This mission demonstrates Toyota's commitment to product safety, reliability and
accessibility.

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 ● This mission also plays an important role in orienting the company's activities and
creating Toyota's brand image.

1.1.1.3. Relationship between Vision and Mission

● Toyota's vision and mission are closely related to each other.
● The mission is to realize the company's vision.
● Vision provides direction for the mission, helping Toyota determine the activities
necessary to achieve its goal of becoming the world's leading automobile
manufacturer.

1.1.1.4. Influence of Vision and Mission on Toyota's Marketing activities

Toyota's vision and mission influence every aspect of Marketing activities,
including:
● Product development: Toyota focuses on developing products that are safe,
reliable and meet customer needs.
● Price: Toyota applies a competitive pricing strategy to ensure its products are
accessible to many customers.
● Promotions: Toyota regularly launches promotions to attract customers.
● Distribution: Toyota builds an extensive distribution network to bring products to
customers easily.
● Communication: Toyota focuses on communicating a reputable, trustworthy brand
image and is committed to bringing high quality products to customers.

CONCLUDE:
Toyota's vision and mission play an important role in guiding the company's
business operations and marketing strategy. Thanks to a clear vision and mission, Toyota
has achieved much success and become one of the world's leading automobile
manufacturers.
Toyota's core values:
● High Quality.
● Low cost.
● Safe.
● Quick response.
● Respect people.
● Working group.
● Innovative techniques.
Toyota's Marketing Strategy:
● Focus on branding.
● Use a variety of Marketing channels.
● Provide attentive customer service.

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 ● Participate in social activities.

1.1.2. Current status of marketing

1.1.2.1. Overview
The automotive industry is currently undergoing significant changes due to the emergence
of new competitors, changing customer demands, and macroeconomic factors such as
climate change and economic recessions.

1.1.2.2. Challenges
● Intense competition: Toyota faces increasingly fierce competition from traditional
automakers like Ford, General Motors, and Hyundai, as well as electric vehicle
startups like Tesla and Rivian.
● Changing customer demands: Today's customers are increasingly concerned with
factors such as fuel efficiency, technological features, and connectivity when
purchasing vehicles.
● Climate change: Toyota is under pressure to reduce the environmental impact of
its operations.
● Economic recession: Economic recessions can affect consumer demand for
vehicles.

1.1.2.3. Opportunities
● Growing electric vehicle market: The electric vehicle market is growing rapidly,
and Toyota has the potential to become a leading EV manufacturer.
● Demand for autonomous vehicles: The demand for autonomous vehicles is
growing, and Toyota is investing heavily in developing this technology.
● Emerging markets: Emerging markets such as Asia and South America have high
growth potential.

1.1.2.4. Toyota's Current Marketing Strategy

● Focus on product development: Toyota is focusing on developing new products
that meet customer needs, including electric vehicles, autonomous vehicles, and
fuel-efficient vehicles.
● Marketing technology innovation: Toyota is using new marketing technologies
such as digital marketing, social media marketing, and influencer marketing to
reach customers more effectively.
● Enhancing customer experience: Toyota is striving to improve the customer
experience by providing better customer service and building long-lasting customer
relationships.

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 ● Engaging in social activities: Toyota participates in social activities to raise brand
awareness and build a reputable company image.

1.1.2.5. Evaluation
Toyota's current marketing strategy is aligned with the current market situation. However,
Toyota needs to continue to innovate and adapt to maintain its leading position in the
automotive market.

1.1.2.6. Recommendations
● Continue to invest in product development: Toyota needs to continue to invest in
developing new products that meet customer needs, particularly electric vehicles
and autonomous vehicles.
● Leverage customer data: Toyota can use customer data to personalize marketing
campaigns and provide a better customer experience.
● Expand into new markets: Toyota can expand into new markets such as Asia and
South America to grow revenue.
● Partner with startups: Toyota can partner with startups to innovate and develop
new products and services.

1.2. MARKETING TOOLS THAT BUSINESSES ARE USING

Product:
- Diverse Product Portfolio: Toyota offers a wide range of products to cater to
diverse customer needs, including:
● Passenger Cars: Camry, Corolla, RAV4, Vios, Altis, ...
● Trucks: Hilux, Hiace, Fortuner, ...
● SUVs: Land Cruiser, Prado, C-HR, ...
● Commercial Vehicles: Hiace, Granvia, ...
Each product line is designed to meet the specific needs of a particular customer segment.
For example, the Camry is a luxury sedan for business customers, while the Vios is an
affordable sedan for young customers.

- High Quality:
● Toyota is renowned for producing safe, reliable, and durable vehicles.
● The company utilizes high-quality materials and advanced manufacturing processes
to ensure product quality.
● Toyota also has an extensive after-sales service network to support customers
whenever they need assistance.

- Modern Design:

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 ● Toyota stays up-to-date with the latest design trends to provide customers with
stylish and attractive vehicles.
● The company collaborates with world-leading designers to create vehicles with
aesthetically pleasing exteriors and interiors.
● For instance, the 2023 Toyota Camry features a luxurious and modern exterior
design, while the 2023 Toyota Corolla Altis boasts a youthful and dynamic design.

- Advanced Technology: Toyota equips its vehicles with the most advanced
technologies, including:
● Safety Features: Forward collision warning system, automatic emergency braking
system, adaptive cruise control, ...
● Comfort Features: Touchscreen display, premium sound system, automatic
climate control, ...
● Entertainment Features: Apple CarPlay and Android Auto connectivity,
navigation system, …

For example, the 2023 Toyota Land Cruiser comes equipped with numerous advanced
safety features, such as a blind spot warning system and lane departure warning system.
Pricing:
- Competitive Pricing:
● Toyota employs a competitive pricing strategy to ensure its products are accessible
to a wide range of customers.
● The company regularly conducts market research to guarantee its product prices
align with those of its competitors.
● Toyota also offers various promotional programs to attract customers.

- Promotional Programs: Toyota frequently implements promotional programs to

entice customers, including:
● Discounts: Direct reductions on the product's selling price.
● Low Interest Rates: Offering installment plans with low-interest rates.
● Gifts: Providing complimentary gifts with vehicle purchases.
For example, the 2023 Toyota Vios is currently being offered with a 10 million VND
discount across all variants.

- High Value:
● Toyota is committed to providing customers with products that offer high value for
their money.
● The company delivers high-quality vehicles packed with features and benefits.
● Toyota also provides exceptional customer service to ensure customer satisfaction.

1.2.1. Overview of corporate media

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1.2.1.1. Communication Channels
- Advertising:
● Toyota employs a variety of advertising channels to reach customers, including
television, print, internet, and social media.
● Toyota's advertisements typically focus on product quality, safety, reliability, and
value.
● The company also collaborates with celebrities to promote its products.

- Public Relations:
● Toyota cultivates positive relationships with the media to secure favorable coverage
of the company.
● The company regularly organizes events and seminars to introduce new products
and share information about the company.
● Toyota also sponsors various community activities to enhance its brand image.

- Direct Marketing:
● Toyota utilizes direct marketing to reach potential customers and encourage them
to purchase its products.
● The company sends emails, direct mail, and text messages to potential customers.
● Toyota also conducts direct marketing events to meet potential customers and
showcase its products.

- Digital Marketing:
● Toyota employs digital marketing to reach customers online and attract them to the
company's website and dealerships.
● The company utilizes tools such as SEO, SEM, display advertising, content
marketing, and social media to engage customers.
● Toyota also leverages influencer marketing to collaborate with social media
influencers to promote its products.

1.1.2.2. Communication Effectiveness:

● Toyota is one of the most successful automotive brands globally.
● The company enjoys a strong reputation for quality, safety, and reliability.
● Toyota boasts a large and loyal customer base.
● The company is highly regarded for its communication efforts.

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1.1.2.3. Examples of Successful Toyota Communication Campaigns:
● "The Unbreakable Bond" Campaign: This campaign narrated the stories of families
who have been connected to Toyota for generations. The campaign was highly
successful in building trust and connection with customers.

● "Prius Challenge" Campaign: This campaign challenged individuals to drive a Prius

and document their fuel-saving experiences. The campaign effectively raised
awareness of the Prius's fuel efficiency and attracted new customers.

● "Super Bowl Ads" Campaign: Toyota is renowned for its creative and humorous
Super Bowl commercials. These ads have helped Toyota reach a vast audience and
establish a unique brand identity.

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1.3. EXTERNAL ENVIRONMENT

1.3.1. Micro environment

1.3.1.1. Customers
- Customer Segments:
● Individuals: Include households using vehicles for daily commuting, travel,
leisure, etc.
● Businesses: Include companies using vehicles for cargo transportation, taxi
services, car rentals, etc.
● Governments: Include government agencies using vehicles for official purposes.

- Customer Needs and Wants:

● Quality: Customers expect Toyota vehicles to be high-quality, durable, safe, and
reliable.
● Performance: Customers want Toyota vehicles to have powerful performance, fuel
efficiency, and environmental friendliness.
● Design: Customers desire Toyota vehicles to have modern, stylish designs that suit
their personal preferences.
● Price: Customers seek Toyota vehicles to be competitively priced and affordable.

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 ● Service: Customers expect excellent, professional, and dedicated customer service.
Examples:
● Toyota launched the Corolla Cross model with numerous improvements in quality,
performance, design, and price to meet the growing customer demands.

● Toyota rolled out the Toyota Sure program with various warranty, maintenance,
and roadside assistance benefits to enhance customer experience.

1.3.1.2. Competitors:
● Direct Competitors: Include other automakers producing and selling vehicles
within the same price segment and market as Toyota, such as Ford, General
Motors, Honda, Nissan, Hyundai, etc.

Toyota là thương hiệu ô tô nắm giữ thị phần cao tại Việt Nam
trong 5 tháng đầu năm 2023

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 Toyota vẫn là thương hiệu ô tô nắm giữ thị phần cao tại Việt Nam
trong quý 1 năm 2024
● Indirect Competitors: Encompass companies providing alternative transportation
means to automobiles, such as motorcycles, buses, subways, etc.
● SWOT Analysis of Competitors:
○ Strengths: Identify the strengths of each competitor to assess their
competitive capabilities.
○ Weaknesses: Identify the weaknesses of each competitor to seek
opportunities for attack.
○ Opportunities: Identify opportunities that competitors may exploit and take
preventive measures.
○ Threats: Identify challenges that competitors may face and capitalize on
emerging opportunities.
Example:
● Toyota conducts a SWOT analysis of Ford to evaluate Ford's competitive strength
in the pickup truck segment with its Hilux model.

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 ● Toyota studies Tesla's electric vehicle development trends to prepare for future
competition.

1.3.1.3. Suppliers:
- Types of Suppliers:
● Raw Material Suppliers: Provide raw materials such as steel, aluminum, plastic,
rubber, etc.

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 ● Component Suppliers: Furnish vehicle components like engines, transmissions,
suspension systems, electronic systems, etc.
● Service Providers: Offer services such as transportation, logistics, maintenance,
repair, etc.

- Supplier Selection Process:

● Capability Assessment: Evaluate the supplier's ability to provide products and
services.
● Quality Assessment: Assess the quality of the supplier's products and services.
● Price Evaluation: Evaluate the competitive pricing of the supplier's products and
services.
● Delivery Assessment: Evaluate the supplier's ability to deliver on time and in full.

- Supplier Relationship Management:

● Frequent Communication: Maintain regular communication with suppliers to
update information and address issues.
● Supplier Support: Assist suppliers in enhancing their capabilities and product
quality.
● Profit Sharing: Share profits with suppliers to incentivize long-term collaboration.
Example:
● Toyota partners with local suppliers in Vietnam to reduce production costs and
strengthen the supply chain.

1.3.2. Macro environment

1.3.2.1. Economic Factors

● Economic Growth: Economic growth leads to increased consumer income,
boosting demand for car purchases. Toyota can capitalize on this by expanding
production and entering new markets.
● Interest Rates: High-interest rates can make it difficult for consumers to finance
car purchases, affecting Toyota's sales. To mitigate the impact, Toyota can offer
attractive financing programs with low-interest rates.
● Exchange Rates: Fluctuations in exchange rates can impact the cost of importing
raw materials and components, as well as the export prices of Toyota's vehicles.
Toyota needs to closely monitor exchange rate movements and adjust pricing
accordingly to maintain profitability.
● Raw Material Prices: Rising raw material prices can increase vehicle production
costs, affecting Toyota's profit margins. To minimize the impact, Toyota can seek
alternative supply sources or implement cost-saving measures.

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Example:
● During periods of economic growth, Toyota increases production and expands into
emerging markets.
● When interest rates rise, Toyota introduces financing programs with low-interest
rates to attract customers.

1.3.2.2. Political Factors

● Tax Policies: Tax policies on automobiles can influence vehicle prices and
purchasing demand. Toyota needs to monitor tax policy changes and adjust its
pricing strategies accordingly.
● Environmental Regulations: Emission regulations and safety standards for motor
vehicles can impact Toyota's production costs and vehicle designs. Toyota must
comply with these regulations and invest in research and development to meet
increasingly stringent requirements.
● Political Stability: Political instability can disrupt Toyota's business operations,
including manufacturing, distribution, and sales. Toyota needs to monitor the
political landscape in its operating markets and have contingency plans in place.
● International Relations: Strained international relations can lead to trade
sanctions, affecting Toyota's import and export activities. Toyota needs to follow
international developments and develop a flexible trade strategy.
Example:
● Toyota complies with Euro 5 and Euro 6 emission regulations to meet
environmental requirements in the European market.
● Toyota invests in manufacturing facilities in politically stable countries to ensure
long-term business operations.

1.3.2.3. Social Factors

● Environmental Consciousness: The growing demand for environmentally friendly
vehicles drives Toyota to develop hybrid and electric vehicle lines.
● Consumer Preferences: Changing consumer preferences regarding vehicle size,
style, and features can influence Toyota's designs and product offerings. Toyota
needs to conduct market research and stay updated on trends to meet customer
demands.
● Demographic Trends: An aging population may lead to a higher demand for
vehicles that are easy to use and suitable for older drivers. Toyota needs to develop
products that cater to this need.
● Urbanization Rate: A high urbanization rate leads to increased demand for
personal transportation, creating opportunities for Toyota to expand its market.
Example:

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 ● Toyota develops the Prius hybrid model to meet the demand for fuel-efficient and
environmentally friendly vehicles.
● Toyota designs vehicles with spacious interiors and easy-to-use features for older
drivers.

1.3.2.4. Cultural Factors

● Attitude Towards Cars: Cars may be perceived as symbols of success and social
status. Toyota needs to understand local cultures to tailor its marketing and pricing
strategies accordingly.
● Family Values: Family values that emphasize togetherness and shared experiences
may influence consumer preferences for larger vehicles or minivans. Toyota should
consider these preferences when developing product lines.
● Religious Beliefs: Religious beliefs may influence transportation choices, such as
the preference for certain vehicle colors or avoidance of travel on specific days.
Toyota needs to be sensitive to these beliefs when marketing its products in
different regions.
Example:
● Toyota offers larger SUVs and minivans in markets where family values emphasize
togetherness and shared experiences.
● Toyota avoids using certain colors or symbols in marketing campaigns that may be
considered offensive in some cultures.

1.4. PAYMENT RISK

Payment risk is a crucial factor to consider in Toyota's pricing strategy, especially as its
business operations span across numerous countries with diverse payment systems and
credit risks.

1.4.1. Types of Payment Risk

- International Payment Risk:
● Exchange Rate Risk: Fluctuations in exchange rates can impact revenue value
when converting from foreign currencies to domestic currency.
● Country Risk: Customers' payment ability may be affected by political, economic,
or social instability in their residing country.
● Procedural Risk: Complex international payment regulations and procedures can
lead to payment delays or additional costs.

- Domestic Payment Risk:

● Customer Credit Risk: Domestic customers' payment ability may be affected by
their financial capacity, credit history, or payment intention.

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 ● Fraud Risk: The use of fraudulent credit cards or payment methods can result in
losses for Toyota.
● Payment System Risk: Technical issues or glitches in payment systems may
prevent customers from paying for Toyota's products or services.

1.4.2. Impact of Payment Risk

● Reduced Revenue: If customers fail to pay, Toyota will experience revenue and
profit losses.
● Increased Costs: Toyota incurs expenses for debt collection, payment dispute
processing, and fraud protection.
● Reputational Damage: Late payments or payment disputes can tarnish Toyota's
reputation and erode customer trust.

1.4.3. Mitigating Payment Risk

● Customer Credit Assessment: Toyota should evaluate customers' financial
standing and creditworthiness before allowing them to purchase products or
services.
● Providing Secure Payment Methods: Toyota should offer multiple secure and
reliable payment options, such as credit cards, online payments, and mobile
payments.
● Utilizing Debt Collection Services: Toyota can partner with professional debt
collection agencies to recover overdue payments.
● Purchasing Payment Risk Insurance: Toyota can purchase insurance to protect
itself from losses due to international or domestic payment risks.
● Monitoring and Managing Risk: Toyota needs to regularly monitor and manage
payment risk to identify and address potential issues.

Examples of Toyota's Payment Risk Mitigation Strategies:

● Toyota offers discounts or incentives for customers who pay using credit cards or
online payment methods.
● Toyota partners with reputable international payment processors to ensure
transaction security and data protection.
● Toyota provides warranty and after-sales support services to build trust and
encourage timely payments from customers.

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CHAPTER II: ANALYSIS OF THE
MARKETING SITUATION

2.1. MARKET SEGMENT

2.1.1. Market Segmentation by Consumer Characteristics of Toyota

2.1.1.1. Demographic Segmentation

- Age:
● Young customers (18-35 years old): This group typically prioritizes affordable,
fuel-efficient cars with stylish designs. Examples: Toyota Yaris, Toyota Vios.
● Middle-aged customers (36-55 years old): This group is often interested in
comfort, spaciousness, and safety for their families. Examples: Toyota Camry,
Toyota Fortuner.
● Older customers (over 55 years old): This group typically prefers cars that are
easy to use, have high visibility, and provide convenient entry and exit. Examples:
Toyota Innova, Toyota Avanza.

- Income:
● Budget-conscious customers: This group has a low income and typically looks for
affordable, fuel-efficient cars. Examples: Toyota Wigo, Toyota Agya.

● Middle-income customers: This group has a stable income and can afford cars
with more features and amenities. Examples: Toyota Corolla Altis, Toyota RAV4.

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 ● High-income customers: This group demands luxury cars with high performance
and brand prestige. Examples: Toyota Land Cruiser, Lexus.

2.1.1.2. Lifestyle Segmentation

● Family customers: This group needs cars with multiple seats, spacious cargo areas, and
amenities for the whole family. Examples: Toyota Sienna, Toyota Alphard.
● Young and trendy customers: This group often prefers sporty cars with strong
performance and individualistic designs. Examples: Toyota GR86, Toyota 86.
● Business customers: This group needs luxury cars with comfort, convenience, and good
connectivity for business purposes. Examples: Toyota Camry, Toyota Lexus ES.

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2.1.1.3. Interest-Based Segmentation
● Off-road enthusiasts: This group needs cars with powerful engines, 4-wheel drive, and
high ground clearance. Examples: Toyota Land Cruiser, Toyota Hilux.

● Travel enthusiasts: This group needs cars with fuel efficiency, spacious cargo areas,
and amenities for long trips. Examples: Toyota Corolla Cross, Toyota C-HR.

● Environmentally conscious customers: This group needs hybrid or electric cars that
are fuel-efficient and environmentally friendly. Examples: Toyota Prius, Toyota bZ4X.

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2.1.1.4. Examples
● Toyota Vios: The B-segment sedan is positioned by Toyota for young customers with its
youthful, dynamic design, affordable price, and fuel efficiency.
● Toyota Fortuner: The SUV is positioned by Toyota for family customers with its 7
spacious seats, large cargo area, and powerful performance.
● Toyota Camry: The D-segment sedan is positioned by Toyota for middle- and high-
income customers with its luxurious design, comfort, and numerous safety features.
● Lexus RX: The luxury SUV is positioned by Toyota for high-income customers with its
premium design, luxurious interior, and advanced technology.

2.1.2. Market Segmentation by Product Type of Toyota

2.1.2.1. Passenger Cars

● A-segment (city cars): Toyota Wigo, Toyota Agya.
● B-segment (subcompact cars): Toyota Yaris, Toyota Vios.
● C-segment (compact cars): Toyota Corolla Altis, Toyota Corolla Cross.
● D-segment (mid-size cars): Toyota Camry.
● E-segment (large cars): Toyota Avalon.
● MPVs (multi-purpose vehicles): Toyota Innova, Toyota Avanza.
● SUVs (sport utility vehicles): Toyota Fortuner, Toyota RAV4, Toyota Land Cruiser.
● Sports cars: Toyota GR86, Toyota 86.

2.1.2.2. Commercial Vehicles

● Trucks: Toyota Hilux, Toyota Hiace.

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● Buses: Toyota Coaster, Toyota Hino.

2.1.2.3. Electric Vehicles:

● Hybrid electric vehicles: Toyota Prius, Toyota Camry Hybrid.
● Battery electric vehicles: Toyota bZ4X.

2.1.2.4. Examples
● Toyota Wigo: The A-segment car is positioned by Toyota for budget-conscious
customers with its affordable price, fuel efficiency, and suitability for city driving.
● Toyota Corolla Altis: The C-segment car is positioned by Toyota for young customers
and families with its modern design, comfort, and numerous safety features.
● Toyota Fortuner: The SUV is positioned by Toyota for families and off-road
enthusiasts with its 7 spacious seats, large cargo area, and powerful performance.
● Toyota Hilux: The truck is positioned by Toyota for business customers with its high
load capacity, fuel efficiency, and durability.
● Toyota bZ4X: The battery electric vehicle is positioned by Toyota for environmentally
conscious customers with its modern design, long driving range, and fast charging
capability.

2.1.3. Market Segmentation by Geographic Region of Toyota:

2.1.3.1. North America

● United States: Toyota has been the best-selling automaker in the United States for
decades. The company focuses on vehicles that suit American tastes, such as pickup trucks,
SUVs, and large sedans. Examples: Toyota Camry, Toyota RAV4, Toyota Tacoma.
● Canada: The Canadian car market is similar to the United States. Toyota also focuses on
large vehicles and SUVs in this market. Examples: Toyota Tundra, Toyota Highlander.
● Mexico: The Mexican car market is growing rapidly and Toyota is investing heavily in
the region. The company offers a variety of affordable vehicles that meet the needs of
Mexican consumers. Examples: Toyota Yaris, Toyota Corolla.

2.1.3.2. Europe
● Western Europe: The Western European car market is a highly competitive market with
many well-known brands. Toyota focuses on fuel-efficient and environmentally friendly
vehicles in this region. Examples: Toyota Yaris Hybrid, Toyota Prius.
● Eastern Europe: The Eastern European car market is growing rapidly and Toyota is
expanding its market share in the region. The company offers a variety of affordable
vehicles that are suitable for the road conditions there. Examples: Toyota Corolla, Toyota
RAV4.

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2.1.3.3. Asia
● Japan: Japan is Toyota's home market and where it has the largest market share. Toyota
offers a wide variety of vehicles to meet the needs of Japanese consumers. Examples:
Toyota Aqua, Toyota Alphard.
● China: China is the largest car market in the world and Toyota is increasing its presence
there. The company partners with Chinese automakers to produce and sell vehicles that suit
the tastes of Chinese consumers. Examples: Toyota Corolla Levin, Toyota RAV4
Rongfang.
● Southeast Asia: The Southeast Asian car market is growing rapidly and Toyota is one of
the leading automakers in the region. The company offers a variety of affordable vehicles
that are suitable for the road conditions there. Examples: Toyota Vios, Toyota Avanza.

2.1.3.4. Latin America

● Brazil: Brazil is the largest car market in Latin America and Toyota is the best-selling
automaker there. The company focuses on affordable vehicles that meet the needs of
Brazilian consumers. Examples: Toyota Etios, Toyota Corolla.
● Mexico: The Mexican car market is similar to Brazil and Toyota also focuses on
affordable vehicles there. Examples: Toyota Yaris, Toyota Corolla.
● Argentina: The Argentine car market is relatively small but Toyota is still one of the
leading automakers there. The company offers a variety of vehicles to meet the needs of
Argentine consumers. Examples: Toyota Hilux, Toyota Corolla.

2.1.3.5. Africa
● South Africa: South Africa is the largest car market in Africa and Toyota is the best-
selling automaker there. The company focuses on SUVs and pickups
that are suitable for the road conditions there. Examples: Toyota Hilux, Toyota Fortuner.
● North Africa: The North African car market is growing rapidly and Toyota is expanding
its market share in the region. The company offers a variety of affordable vehicles that
meet the needs of North African consumers. Examples: Toyota Yaris, Toyota Corolla.
● East Africa: The East African car market is relatively small but Toyota is still one of the
leading automakers there. The company offers a variety of vehicles to meet the needs of
East African consumers. Examples: Toyota Land Cruiser, Toyota Prado.

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2.2. TARGET MARKET

2.2.1 Toyota's Target Market by Features and Benefits

2.2.1.1. Young Customers (18 - 35 years old)

- Goal: Provide affordable, fuel-efficient cars with stylish designs and advanced
technology to attract young, active customers.

- Benefits:
● Competitive pricing.
● Fuel efficiency.
● Sporty and modern designs.
● Advanced connectivity and entertainment features.
● Ease of use and maintenance.

Examples: Toyota Yaris, Toyota Vios, Toyota Corolla Altis.

2.2.1.2. Families
- Goal: Offer spacious, comfortable, safe, and convenient vehicles to meet the needs
of families.

- Benefits:
● Spacious and comfortable interior.
● Flexible and convenient seating.
● Sunroofs and large windows for good visibility.
● Rear-seat entertainment systems.
● Advanced safety features.

Examples: Toyota Innova, Toyota Avanza, Toyota Fortuner.

2.2.1.3. Environmentally Conscious Customers

- Goal: Provide hybrid and electric vehicles that are environmentally friendly to meet
the needs of eco-conscious customers.

- Benefits:
● Reduced emissions and environmental pollution.
● Fuel economy and cost savings.
● Smooth and quiet driving experience.
● Eco-friendly brand image.

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 ● Tax and fee incentives.

Examples: Toyota Prius, Toyota Camry Hybrid, Toyota bZ4X.

2.2.1.4. Business Customers

- Goal: Deliver luxurious, comfortable, and reliable vehicles to fulfill the needs of
business customers.
- Benefits:
● Premium and professional brand image.
● Luxurious and comfortable interior.
● Advanced technology to support driving and work.
● Premium customer service.
● High resale value.

Examples: Toyota Camry, Toyota Lexus ES, Toyota Alphard.

2.2.1.5. Off-road Enthusiasts

- Goal: Offer powerful, capable, and durable SUVs to meet the needs of off-road
enthusiasts.
- Benefits:
● Powerful performance on all terrains.
● Advanced 4WD systems.
● High ground clearance and ample approach and departure angles.
● Comfortable and convenient interior.
● Rugged and stylish image.

Examples: Toyota Land Cruiser, Toyota Hilux, Toyota Fortuner.

2.2.2. Toyota's Target Market by Geographic Region

Toyota divides the market into different geographic regions and applies distinct target
market strategies for each region to cater to the needs and preferences of local customers.
Here are some examples:

2.2.2.1. North America

● Goal: Maintain its position as the best-selling automaker in the United States and Canada
by offering vehicles that suit American and Canadian tastes, such as pickup trucks, SUVs,
and large sedans.
● Examples: Toyota Camry, Toyota RAV4, Toyota Tacoma, Toyota Tundra, Toyota
Highlander.

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2.2.2.2. Europe
● Goal: Increase market share in the highly competitive European car market by focusing
on fuel-efficient and environmentally friendly vehicles while meeting stringent European
emission standards.
● Examples: Toyota Yaris Hybrid, Toyota Prius, Toyota Corolla, Toyota C-HR.

2.2.2.3. Asia
● Goal: Strengthen its market leadership in the rapidly growing car markets of Asia, such
as China, India, and Southeast Asia, by offering affordable vehicles that are suitable for
local conditions.
● Examples: Toyota Vios, Toyota Avanza, Toyota Corolla Altis, Toyota Camry, Toyota
Hilux.

2.2.2.4. Latin America

● Goal: Expand market share in the growing Latin American car market by providing
affordable and durable vehicles that suit local road conditions and consumer needs.
● Examples: Toyota Etios, Toyota Corolla, Toyota Hilux, Toyota RAV4.

2.2.2.5. Africa
● Goal: Enhance its presence in the potential African car market by offering robust and
reliable SUVs and pickups that are suitable for the terrain and needs of local consumers.
● Examples: Toyota Hilux, Toyota Fortuner, Toyota Land Cruiser.

2.3. OVERVIEW OF TOYOTA’S MARKETING MIX 4Ps:

2.3.1. Product
● Toyota offers a wide variety of vehicles to meet the needs of different customers. Their
main vehicle lines include sedans, SUVs, pickup trucks, hybrid vehicles, and electric
vehicles.
● Toyota focuses on developing high-quality, safe, reliable, and fuel-efficient vehicles.
They also focus on equipping their vehicles with advanced technology features and modern
designs.
● Examples: Toyota Camry, Toyota RAV4, Toyota Corolla, Toyota Prius, Toyota bZ4X.

2.3.2. Price
● Toyota employs a competitive pricing strategy for its products. They offer a variety of
price points to cater to different customer segments.

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● Toyota also utilizes promotions and discounts to attract customers. They also offer
attractive financing packages to make it easier for customers to purchase vehicles.

Examples: The Toyota Camry starts at $24,495, the Toyota RAV4 starts at $26,975, and
the Toyota Corolla starts at $20,075.

2.3.3. Place
● Toyota has an extensive global distribution network with over 10,000 dealerships in
more than 180 countries. This makes it easy for customers to purchase and service their
Toyota vehicles.
● Toyota also sells vehicles online through their website. This allows customers to
purchase vehicles conveniently and quickly.

Example: You can find your nearest Toyota dealer on the website https://www.toyota.com/

2.3.4. Promotion
● Toyota utilizes various advertising channels to reach customers, including television,
print, internet, and social media. They also sponsor sporting and entertainment events to
increase brand awareness.
● Toyota also employs direct marketing programs to reach potential customers. They send
emails and mail to customers and organize test drive events.

Example: Toyota frequently runs ads on television and YouTube. They also have an annual
"Golden Week" promotion where customers can purchase vehicles at discounted prices.

2.4 SWOT

2.4.1. Strengths
- Strong Brand Reputation:
● Longstanding Reputation: Toyota was founded in 1937, with over 80 years of
experience in the automotive industry.
● High Quality: Toyota vehicles are renowned for their durability, safety, and
reliable performance.
● Strong Resale Value: Toyota vehicles retain their value well compared to
competitors, benefiting customers when reselling their cars.
● Excellent Customer Service: Toyota provides attentive and professional customer
service, building trust and satisfaction among customers.
Examples:

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 ● J.D. Power surveys have ranked Toyota as the most reliable automotive brand for
14 consecutive years in the United States.
● Toyota Corolla and Camry models consistently top the list of best-selling cars
globally.

- Diverse Product Portfolio:

● Catering to Various Needs: Toyota offers a wide range of vehicles to meet
diverse customer needs, from affordable sedans to high-end sports cars, trucks, and
SUVs.
● Expanding Market Share: A diverse product portfolio allows Toyota to reach
multiple customer segments and expand its market share.
● Mitigating Risks: If one market segment struggles, Toyota can compensate with
revenue from other segments.
Examples:
● Toyota offers vehicle lines such as Corolla, Camry, RAV4, Land Cruiser, Prius,
and more, catering to a broad range of customers.
● Toyota's Lexus luxury vehicle line appeals to customers seeking premium and
prestigious cars.

- Extensive Distribution Network:

● Over 10,000 Dealerships: Toyota boasts a vast network of dealerships and retail
outlets worldwide, ensuring accessibility and good customer service for its
clientele.
● Easy Car Purchasing: Customers can easily find and purchase Toyota vehicles at
dealerships near their homes.
● Convenient After-Sales Service: The extensive dealership network enables
Toyota to provide convenient warranty, maintenance, and repair services for
customers.
Examples:
● In Vietnam, Toyota has over 100 dealerships and retail outlets nationwide.
● Toyota offers 24/7 customer support through a hotline and website.

- Robust Manufacturing Capabilities:

● Lean Manufacturing System: Toyota employs the Lean Manufacturing system to
minimize waste and enhance production efficiency.
● High Automation: Toyota utilizes numerous robots and automated machinery in
its manufacturing processes, increasing productivity and product quality.
● Quick Response: The flexible manufacturing system allows Toyota to respond
swiftly to market demands and adjust production to meet fluctuating needs.
Examples:
● Toyota is among the automakers with the lowest production costs globally.

32
 ● Toyota can produce a new vehicle in just a few minutes.

- Advanced Research and Development (R&D) Activities:

● Significant Investment in R&D: Toyota invests heavily in R&D to develop new
technologies and improve products.
● Hybrid and Electric Vehicle Development: Toyota is a pioneer in hybrid and
electric vehicle development, with renowned models like the Prius and Camry
Hybrid.
● Engine and Transmission Enhancements: Toyota continuously refines its
engines and transmissions to enhance fuel efficiency and reduce emissions.
Examples:
● Toyota's European Research & Development Center (ED2) employs over 1,100
engineers and scientists working in various research fields.
● Toyota has sold over 25 million hybrid vehicles globally.

2.4.2. Weaknesses
- Electric Vehicle Shortage:
● Lagging Development: Compared to competitors like Tesla, General Motors, and
Volkswagen, Toyota is behind in developing and offering electric vehicles.
● Limited EV Options: Toyota currently only provides a limited selection of electric
vehicle models, restricting customer choices.
Example: Consumers seeking a wider variety of electric vehicle options may choose other
brands.

- Focus on Traditional Markets:

● Overreliance on North America: Toyota's revenue heavily relies on the North
American market, making it susceptible to economic fluctuations in the region.
Example: An economic downturn in North America could significantly impact Toyota's
profits.
● Potential Growth Limitations: Focusing primarily on traditional markets may
limit Toyota's growth opportunities in emerging markets with high potential.
Example: Toyota may miss out on increased car sales in rapidly developing countries.

- Complex Supply Chain:

● Potential Disruptions: Toyota's extensive global supply chain could be disrupted
by events like natural disasters, political instability, or labor strikes.
Example: A natural disaster in a key supplier country could halt production and delay
deliveries.
● Increased Costs: Managing a complex supply chain can lead to higher overhead
costs for Toyota.

33
Example: Toyota may need to raise prices to compensate for increased supply chain
management costs.
● Quality Control Challenges: Maintaining consistent quality standards across a
global supply chain can be challenging.
Example: A quality control issue at a supplier could lead to product recalls and damage
Toyota's reputation.

2.4.3. Opportunities
- Growth in Electric Vehicle Market:
● Rising Demand: The global demand for electric vehicles (EVs) is rapidly
increasing, presenting a significant opportunity for Toyota.
● Leveraging Existing Brand Reputation: Toyota can leverage its strong brand
reputation and loyal customer base to capture a significant share of the growing EV
market.
● Developing New EV Models: By investing in R&D and expanding its EV
portfolio, Toyota can cater to diverse customer needs and preferences.
Example: Toyota could introduce a wider range of electric vehicles, including SUVs,
trucks, and budget-friendly options, to compete effectively with established and emerging
EV manufacturers.

- Expansion into Emerging Markets:

● Rising Disposable Income: Growing economies and increasing disposable income
in emerging markets create a strong demand for new vehicles.
● Adapting Products: Toyota can adapt its existing product lines or develop new
models specifically suited for the needs and preferences of emerging markets.
● Building Brand Awareness: By establishing a strong presence in these markets,
Toyota can build brand awareness and customer loyalty for the future.
Example: Toyota could develop more fuel-efficient and affordable vehicles to cater to
price-sensitive consumers in emerging markets.

- Development of Mobility Services:

● Shifting Consumer Preferences: Consumers are increasingly opting for car-
sharing, ride-hailing, and other mobility services over traditional car ownership.
● Partnering with Mobility Providers: Toyota can partner with existing mobility
service providers or develop its own platform to cater to this growing demand.
● Monetizing Vehicle Data: Utilizing data collected from connected vehicles,
Toyota can offer new services and generate additional revenue streams.
Example: Toyota could launch a car-sharing service using its existing fleet of vehicles,
providing a convenient and flexible transportation option for urban customers.

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 - Integration of Advanced Technologies:
● Autonomous Driving: Investing in autonomous driving technology positions
Toyota at the forefront of the future of transportation.
● Connected Vehicles: By developing connected car technology, Toyota can offer
enhanced safety features, personalized driving experiences, and valuable data
insights.
● Artificial Intelligence Integration: Integrating AI into its vehicles can improve
functionalities like navigation, safety systems, and personalized recommendations.
Example: Toyota could collaborate with tech companies to develop self-driving car
technology, potentially revolutionizing the transportation landscape.

- Focus on Sustainability:
● Environmental Regulations: Increasingly stringent environmental regulations
encourage automakers to develop more sustainable vehicles and production
processes.
● Consumer Demand for Eco-Friendly Products: Consumers are becoming more
environmentally conscious, creating a demand for sustainable vehicles.
● Investing in Green Technology: By developing and utilizing eco-friendly
technologies, Toyota can enhance its brand image and attract environmentally
conscious customers.
Example: Toyota could invest in renewable energy sources to power its production
facilities and develop electric vehicles with longer ranges and shorter charging times.

2.4.4. Threats
- Increasing Competition:
● Established Players: Existing automakers like General Motors, Ford, and
Volkswagen are constantly innovating and improving their offerings.
● New Entrants: Tech companies like Tesla and startups specializing in electric
vehicles pose a significant threat to Toyota's market share.
● Chinese Automakers: Chinese automakers are rapidly expanding their global
presence, offering competitive pricing and features.
Example: Increased competition could lead to price wars, making it difficult for Toyota to
maintain its profit margins.

- Fluctuations in Raw Material Prices:

● Volatile Costs: The cost of essential raw materials like steel, aluminum, and
lithium can fluctuate significantly, impacting Toyota's production costs.
● Supply Chain Disruptions: Geopolitical instability or trade wars could disrupt the
supply of raw materials, hindering production.

35
Example: A surge in steel prices could force Toyota to raise vehicle prices or face reduced
profits.

- Shifting Consumer Preferences:

● Focus on Sustainability: Consumers are increasingly prioritizing fuel efficiency,
electric vehicles, and environmentally friendly practices.
● Alternative Transportation Options: The rise of ride-hailing, car-sharing, and
public transportation may decrease car ownership rates.
Example: If Toyota fails to adapt its offerings to meet changing consumer preferences, it
could lose market share to competitors.

- Stringent Environmental Regulations:

● Emission Standards: Governments worldwide are implementing stricter emission
standards, forcing automakers to invest heavily in cleaner technologies.
● Production Regulations: Regulations aimed at reducing environmental impact
during manufacturing could increase production costs for Toyota.
Example: Failure to comply with new emission standards could result in heavy fines or
production stoppages.

- Technological Disruptions:
● Rapid Innovation: The automotive industry is undergoing rapid technological
advancements like autonomous driving and connected vehicles.
● Cybersecurity Threats: Increasing reliance on connected car technology exposes
vehicles to potential hacking and security breaches.
Example: If Toyota falls behind in adopting new technologies, its vehicles could become
outdated and less competitive.

2.5. POPs AND PODs

2.5.1. POPs (Points-of-Parity)

● High Quality: Toyota vehicles are renowned for their durability, safety, and
reliable performance.
● Extensive Distribution Network: Toyota boasts a vast network of dealerships and
retail outlets worldwide, ensuring accessibility and good customer service for its
clientele.
● Excellent Customer Service: Toyota provides attentive and professional customer
service, building trust and satisfaction among customers.
● Strong Resale Value: Toyota vehicles retain their value well compared to
competitors, benefiting customers when reselling their cars.

36
2.5.2. PODs (Points-of-Difference)
● Strong Brand Reputation: Toyota possesses one of the most trusted and respected
automotive brands globally.
● Diverse Product Portfolio: Toyota offers a wide range of vehicles to meet diverse
customer needs, from affordable sedans to high-end sports cars and commercial
vehicles.
● Advanced Research and Development (R&D) Activities: Toyota invests heavily
in R&D, enabling the company to continuously improve products and develop new
technologies.
● Commitment to Sustainability: Toyota demonstrates a commitment to
environmental protection and sustainable practices, appealing to customers
concerned about environmental issues.
Example:
● POPs: Toyota Corolla and Honda Civic both offer high quality, extensive
dealership networks, and excellent customer service.
● PODs: Toyota Corolla has a stronger resale value than Honda Civic, while Honda
Civic has a sportier design and more technological features.

2.5.3. Utilizing POPs and PODs in Pricing Strategy

● Market Segmentation: Toyota can leverage POPs and PODs to segment the
market and target specific customer groups. For instance, Toyota can focus on
quality and durability-conscious customers by emphasizing its POPs.
● Pricing: Toyota can justify its premium pricing by utilizing POPs and PODs. For
example, Toyota can charge higher prices for models with PODs like strong brand
reputation, diverse product portfolio, and commitment to sustainability.
● Positioning: Toyota can employ POPs and PODs to position its brand in
customers' minds. For instance, Toyota can position itself as a premium and reliable
brand by highlighting its POPs and PODs.
● Communication: Toyota can incorporate POPs and PODs into its communication
campaigns to attract customers. For example, Toyota can advertise the high quality
and durability of the Corolla in targeted communication campaigns aimed at
families.

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2.6. COMPETITORS

2.6.1. Comparison of Honda and Toyota Pricing Strategies

Honda:
● Strategy: Value-based and competitive pricing.
● Key strengths:
○ High quality and durability: Renowned for long-lasting, low-
maintenance, and fuel-efficient vehicles.

38
 ○ Technology and features: Equips many advanced technologies and
modern infotainment systems.
○ Brand reputation: Strong brand for quality and reliability.
● Pricing:
○ Mainstream segment: Mid-to-high prices, competitive.
○ Hybrid segment: Competitive prices to attract customers.
● Example: Honda Civic (starting at $21,250).

Toyota:
● Strategy: Value-based, brand-driven, and competitive pricing
● Key strengths:
○ High quality and durability: Renowned for long-lasting, low-
maintenance, and highly reliable vehicles.
○ Technology and features: Focuses on safety technology, fuel efficiency,
and infotainment systems.
○ Brand reputation: Strong global brand for quality and reliability.
● Pricing:
○ Mainstream segment: Mid-range prices, competitive with rivals.
○ Hybrid segment: Competitive prices to maintain leadership position.
● Example: Toyota Corolla (starting at $20,025)

Comparison:
Criterion Honda Toyota
Quality &
High Very high
durability
Technology & Many modern
Focus on safety, efficiency & entertainment
features technologies
Brand reputation Strong Strong globally
Mid-to-high, Mid-range, competitive, focuses on long-
Pricing
competitive term value
Hybrid segment Pursuing Leading with Prius

Conclusion:
● Both brands offer high-quality, durable vehicles at competitive prices.
● The choice between the two depends on individual needs and preferences:
○ Honda: Suitable for those who love modern technology and an engaging
driving experience.
○ Toyota: Suitable for those who prioritize reliability, fuel efficiency, and
long-term value.

39
2.6.2. Comparison of Nissan and Toyota Pricing Strategies

Nissan focuses on flexibility and value while Toyota emphasizes brand reputation and
features:

Key Differences:
Criterion Nissan Toyota
Overall
Flexible Brand Value
Strategy
Pricing Performance, feature-based,
Technology-based, competitive
Approach competitive
High for tech-heavy vehicles,
Price Levels Higher, reflecting brand value
competitive
Promotions Frequently used Less common

Detailed Analysis:
1. Flexible Pricing vs. Brand Value Pricing:
● Nissan:
○ Utilizes promotions, discounts to attract customers.

40
 ○ Adjusts prices based on market demand.
○ Offers the best value in the segment.
● Toyota:
○ Maintains higher prices due to strong brand reputation.
○ Focuses on brand value, making customers willing to pay more.
○ Uses promotions less frequently.
2. Technology-based Pricing vs. Performance and Feature-based Pricing:
● Nissan:
○ High prices for tech-heavy vehicles, especially EVs (e.g., Nissan Leaf:
~$31,500).
○ Uses technology as a key selling point.
● Toyota:
○ Prices based on performance and features, including advanced technology.
○ Balances price, performance, and features to attract customers.
3. Competitive Pricing:
● Both brands compete on price:
○ Nissan: Focuses on providing the best value in the segment.
○ Toyota: Uses pricing to reflect brand reputation and product features.
Conclusion:
● The choice between Nissan and Toyota depends on individual needs and
preferences:
○ Nissan: Suitable for those seeking competitive prices, flexibility, and tech-
forward vehicles.
○ Toyota: Suitable for those who value brand reputation, are willing to pay
more for quality, performance, and premium features.

41
2.6.3. Comparison of Hyundai and Toyota Pricing Strategies

Hyundai employs a competitive pricing strategy focused on affordability and high features,
while Toyota emphasizes brand value and premium quality:

Key Differences:
Criterion Hyundai Toyota
Overall
Competitive pricing Brand value pricing
Strategy
Price
Affordable Higher
Levels
Emphasis High features at reasonable prices High quality, brand reputation
Target Focuses on new buyers and first- Attracts customers seeking long-term
Market time car owners value and reliability
Promotions Frequently offered Less common
Warranty Long-term (5-7 years) Standard (3 years)

Detailed Analysis:
1. Competitive Pricing:
● Hyundai:
○ Starting prices are generally lower than competitors in the same segment.

42
 ○ Offers a wide range of standard features and options to meet diverse
customer needs.
○ Aims to attract new buyers and first-time car owners.
● Examples:
○ Hyundai Elantra: Starts at a lower price than the Toyota Corolla but still
offers many modern features.
○ Hyundai Tucson: Provides various trims with affordable prices and diverse
features.
2. Brand Value Pricing:
● Toyota:
○ Higher price points are based on a long-standing brand reputation and
proven product quality.
○ Focuses on long-term value, reliability, and strong resale value.
○ Attracts customers willing to pay more for quality and brand.
● Examples:
○ Toyota Corolla: While priced higher than the Hyundai Elantra, the Toyota
Corolla is highly regarded for its durability, fuel efficiency, and resale
value.
○ Toyota RAV4: Offers premium quality, advanced safety features, and
hybrid technology, appealing to customers seeking a reliable SUV with
long-lasting value.
3. Promotions and Warranty:
● Hyundai:
○ Frequently runs attractive promotions such as direct discounts, financial
support, and bonus packages.
○ Offers long-term warranties (typically 5-7 years) to provide peace of mind
and enhance product value.
● Toyota:
○ Utilizes promotions less frequently than Hyundai.
○ Provides standard warranties (typically 3 years).
Conclusion:
The choice between Hyundai and Toyota depends on individual needs and preferences:
● Hyundai: Suitable for those seeking an affordable car with modern features and a
long-term warranty.
● Toyota: Ideal for those prioritizing long-term value, reliability, a reputable brand,
and are willing to pay more for premium quality.

43
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