1

Toyota Corolla
─

Prepared by:
Nourchene Arroubi
Mayssa Dadi
Sarah Dhaoui
Safa Sahli
 2

Plan

● Introduction
● Description of The Company
● Marketing Environmental
Analysis
● Marketing Strategy
● Marketing Mix
● Recommendation and
Conclusion
● References
 3

Introduction

Toyota was founded in 1937 by Kiichiro Toyoda, a

Japanese businessman who was crucial in paving the
way for the Japanese automotive industry. The
company today is one of the largest automakers in the
world. It produces a variety of vehicles: from luxury
sedans to compact cars like the Toyota Corolla. The
latter was the best-selling car in 2021 due to its
affordability, practicality, and reliability. This project
aims to introduce this product with an eye to the
marketing environments and techniques that made
Toyota gain a competitive advantage.
 4

Description of The
Company

-Name: Toyota
-Product & its classification: Toyota Corolla, shopping
product.
-Location: Toyota City: an industrial city east of Nagoya,
Japan.
-Telephone: 1-800-874-7505
-Website: https://www.toyota.com/
-Activities: Textile machinery, automobiles (vehicles,
engines, air-conditioning compressors for cars, and car
electronics), and materials handling equipment.
-Number of employees: Nearly 350,000 workers
globally.
-Turnover: Latest turnover in 2022 was $267.02B.
-Market: International
 5

Marketing
Environmental
Analysis
Ⅰ.The Microenvironment
The Microenvironment is "The factors close to the
company that affects its ability to serve its customers."
It consists of five actors.

1) Customers: Toyota examined its customers and

deduced that they required a vehicle with higher fuel
efficiency and a lower cost. As a result, the company
decided to release the Toyota Corolla on the market. Their
main target was middle-class families.

2) Competitors: The car sector has recently experienced

fierce rivalry. Toyota's main rivals include businesses like
Tesla, Ford, and BMW.
 6

3) Suppliers: Toyota, the second-largest automaker in the

world after Volkswagen, sold more than 9.9 million
vehicles in 2021. It purchases its raw material from more
than 200 vendors. Toyota is known for using the Just in
Time method of managing production. It developed a
system that passes on the production schedule to the
suppliers. This way, its suppliers will know precisely the
needs and timing of shipping materials without wasting
time on communication.

4) Marketing intermediaries: Toyota collaborates with

multiple marketing firms, including the Saatchi & Saatchi
global marketing firms.

5) The corporate headquarters: Toyota's various

departments work harmoniously to satisfy its customers.

Ⅱ.The Macro-environment
The macro-environment consists of six forces. They are
demographic, sociocultural, political, economic, natural,
 7

and technological. The macro-environment has an impact

on the entire microenvironment.

1) The demographic forces: The target demographic is

primarily middle-aged consumers between 30 and 50
years old. Males and females are both included in this.
Depending on the particular automobile model, the target
market varies.

2) The sociocultural forces: Toyota is the most reputable

automaker in the world. It respects society by contributing
to its economic and social development. And like any
other company, Toyota faces challenges like vehicle
recalls, a massive switch to electric cars, and security
issues.
VEHICLES RECALLING:
The vehicles contained a faulty fuel pump, and it had no
choice but to recall over 700,000 vehicles. This hurt the
company financially and made people question its
credibility. The company fixed the problem, but it left a
bad taste in people's minds.
 8

ELECTRIC VEHICLES

People across the world have become environmentally

conscious, and they prefer eco-friendly vehicles. Toyota
should shift to the mass production of electric and hybrid
cars. It would help the company to attract the attention of
the eco-friendly customer market.

SAFETY ISSUES

Safety features are the basic and essential element of any

vehicle. When some of the cars of Toyota lost safety
controls due to faulty acceleration and pedal systems, it
endangered the lives of many customers. Many people
became outraged because of it, and the company had to
pay billions of dollars to fix it. But that wasn’t enough for
many customers; they lost their trust in the company.

3) The political forces: The corporation does not deal

with unions, has an insignificant financial burden and
legal fees, and has negligible political and legal
ramifications. The business must function per the laws
established by the nation where it is based.
 9

4) The economic forces: The automobile industry has

been dealing with fierce competition, and developing
nations like China and India are expanding quickly. On
the other hand, a decline in the value of the Yen
concerning the US dollar may present a better opportunity
to make money in the US market.

5) The Natural Forces: Toyota strives to offer hygienic

and secure products. It optimizes its operations in line
with its belief in a sustainable society built on recycling.
It is an eco-friendly company that encourages
sustainability.
It faced two major natural disasters in 2011: the Great
East Japan Earthquake and the Thailand floods. Toyota
overcame these crises through unified efforts with its
group companies, suppliers, and dealers, all making
efforts to restore operations to achieve even more prompt
delivery of vehicles to customers.

6) The technological forces: Huge amounts have been

invested in technological advances and producing
 10

high-quality products. Toyota tends to focus on R&D to

keep up with the turbulent environment.
 11

Marketing Strategy

Its marketing strategies change according to market

demands in different geographies. It also has a worldwide
dealer network to supply products known for its quality
innovation. But more importantly, as part of its marketing
strategy, Toyota always puts the customer's best interests
first. The latter may be the reason for the long-term
success of the company.

Ⅰ.Differentiation/ Positioning Strategy

Its marketing strategy aims to differentiate its products

from fierce competitors like Ford or General Motors. Ford
builds one car at a time and markets it worldwide, while
Toyota, on the other hand, manufactures cars for specific
countries and markets them globally. For example, it
designs vehicles in countries with specific climatic
conditions, like Saudi Arabia or Canada. Toyota
manufactures cars to fit the needs of its customers. Even
 12

with slogans, it opted to make one for each country. In

Japan, the company slogan changes frequently; as of
2017, the current version is «Begin Your Impossible»
However, in the United States, since 2012, it has been
«Let's go places» This strategy allows Toyota to price its
products because it differentiates them from its
competitors.

Ⅱ.Segmentation

Toyota uses a combination of demographic, geographic,

behavioral, and psychographic segmentation strategies to
understand different customer groups.

1) Demographic Segmentation
The constitutional audience includes both genders, men,
and women between 30 to 50 years old.
A Toyota Camry is a popular mid-size car for families. A
Toyota Prius is famous for city dwellers and upper-class
families, while Toyota Yaris targets younger and wealthier
buyers.
 13

2) Geographic Segmentation
Its worldwide presence is significant in Japan and North
America, with 1.9 million cars sold in Japan in the spring
of 2021 and 2022. Its biggest target market was North
America. It sold approximately 2.3 million vehicles over
the same period.
Although North America is its biggest market, Japan has
the highest total sales. According to its financial results,
The car company has earned around 16 Trillion yen in
Japan compared to 11 Trillion yen in North America and
6.5 Trillion yen in Asia.
 14

3) Behavioral Segmentation
Toyota makes their customers keep their cars as long as
possible. Studies have shown that out of the top 10, 4
Toyota models are among the length of ownership list.
After the Ford Explorer, Toyota Carmy owners spent an
average of nine and a half years in this vehicle,
demonstrating the quality and reliability of the brand.

4) Psychographic Segmentation
Toyota customers strongly value Japanese innovations
and consider them efficient, high-quality, and branded.
Toyota's target market in the electric vehicle segment
focuses on fuel economy and high resale value. Comfort,
safety, and usefulness are top priorities, while style and
luxury are less significant.
 15

Marketing Mix
The marketing mix consists of four elements called four
Ps.
● The product: It creates value.
● The price: It captures value.
● The place: It delivers value.
● The promotion: It communicates value.
 16

1) Product

The Toyota Corolla has been a successful product since

1997 due to its adaptability, reliability, dependability,
and affordability. It has been popular among American
and Middle Eastern middle-class families. The product
went through different stages of the product life cycle,
from growth to maturation, and eventually to decline due
to fierce competition, technical problems, and a saturated
market.
 17

2) Price

The price ranges from $21,550 to $26,700 in the US. It

differs from one country to another due to tax, transport,
and warehousing costs.
In 2020, Toyota Corolla cost the company around $16,500
to $18,000. In this case, Toyota made a profit between
$5,050 and $8700.
To satisfy its customers, Toyota used both penetration and
economy price strategies.
● Penetration Strategy: appeal to working-class and
middle-class consumers.
● Economy Price Strategy: provide a competitive price
affordable to wide-ranging clients.

3) Place

Toyota Corolla cars are distributed globally through two

types of channels.
1. Sixty-seven independent dealership channels and
seventy-four outlets in Japan.
 18

2. Sales subsidiaries to support sales in markets outside

Japan.

4) Promotion

Toyota Corolla used various promotional methods to

reach customers.
1. Advertising: TV commercials featuring celebrities/
TV shows like Top Gear/on the Toyota
website/Androids and
iTunes/Magazines/leaflets/posters/brochures.
2. Sales promotions through Demo cars.
3. Personal selling and showrooms.
4. Public relations:
-Press releases on these two websites:
https://media.toyota.co.uk/ and
https://pressroom.toyota.com/
-Events such as Toyota Music Factory. It benefits
the Children’s Cancer Fund and the One Tribe
Foundation. It also helps needy families with a
donation drive. The latter is built around this notion:
«Give a gift, get a gift.»
 19

Recommendation and
Conclusion

Overall, Toyota Corolla should continue adapting its

production to the changes in the needs and preferences of
consumers to build on its strengths while continuing the
focus on its reputation for reliability and value, as these
are the two main factors that influence consumers'
choices. The company should also continue investing in
its hybrid models to appeal to environmentally-conscious
consumers. However, it should stay up-to-date with the
latest technological advancements to gain a competitive
advantage and keep up with the competition. Lastly, they
could explore partnerships with other companies focusing
on sustainable transportation.
 20

References
● Toyota Target Market Analysis – Toyota Customer Base, Market Segmentation &

Competitors - Start.io - A Mobile Marketing and Audience Platform

● Critical Analysis of Marketing Strategy for Toyota Corolla Altis 1.8 - Free Essay

Example - Edubirdie

● Toyota Marketing Strategy: The Pride of Japanese Quality? (avada.io)

● Marketing Mix of Corolla Toyota car Research Paper

● https://www.toyota.com/

● 2023 Toyota Corolla

● Analyses Of Toyota Motors Internal And External Environment Marketing Essay

● Detailed PESTEL Analysis of Toyota

● Pratap, A., 2022. TOYOTA PESTEL ANALYSIS

● Shaw, A., 2022. PESTLE Analysis of Toyota | SWOT & PESTLE Analysis.