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The Strategic Planning Process For Toyota Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 4594 words Published: 1st Jan 2015

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Strategic planning is the process of developing and maintaining a strategic fit between the organizations’ goals and capabilities and its changing marketing opportunities. Same goes to Toyota organizations that have their own objectives for business. According to http://www.toyota.co.jp/ (2010-05-03), Toyota objectives are “to create vehicles and a mobility society in which people can live with a sense of safety, peace of mind, and comfort”. These objectives are concern about the quality of product and the society regarding their business.

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Toyota can apply this model when setting their organizational objectives. Toyota might experiment their SWOT matrix as the first steps to develop the organizational objectives. This stage needs the organization to environmental scanning, background information and situational analysis. Next, baseline stages consider Toyota to significant issue; align with capabilities, gaps and the situations (past, present and future). Here, the management need to study the issue eagerly before set up the action plans and goals. Then the organizations can implement the component into the issues exactly such as mission and vision, values principle, major goals and specific objectives. Toyota can down to specific stages with measure the performance of the business, standardize the performance, find out initiatives and projects and take proper action plans. Finally, Toyota can evaluate the results from the four stages before. Toyota should review the progress and balanced the structure. Take corrective action from the feedbacks received. Then the result will show how effective the performance of Toyota.

So, Toyota needs to understand their objectives and goals before they can work for it. As the objective given, Toyota is concern about the quality of product and the society regarding their business. They want the consumer to satisfied and appreciate value of their life. The manager and employees need to do research on consumer feedbacks for increasing their financial and strategic objectives.


Every organization needs to plan their organizational objectives for long-term activities. These objectives can apply as company policies or manual for the employees. Objectives must be rationale set up or either wise it does not perform well as the perceptions. These objectives are related with the environmental factors.


Last year Toyota was forced to recall its car from the US market due to faulty brakes. This has affected Toyota’s image in the minds of stakeholders. In order to change stakeholders’ attitude towards Toyota, it has plan new strategies. Stakeholders’ is the asset for Toyota that they should aware and concern on because without the stakeholders’, Toyota can’t be success as today.


In order to change stakeholders’ attitudes Toyota, it has plan new strategies as marketing strategies, operational strategy, communication strategy and etc. The strategies are built based on the feedback from the consumer and the employees itself. Toyota as the practitioner of corporate social responsibilities has the customer care centre for worldwide productions. So they can simply get the opinions on how to improve the quality of productions.

Toyota is known to be consistent in its product quality and in the production department. With it initiatives in the fast-growing hybrid market and with efforts to get its branding and advertising acts together, Toyota could be well expected the roads on fire in the days to come.

According to the case study, Toyota has forced to recall its car from US market due to faulty brakes. This shows that Toyota has great responsible towards their consumer. They have give their high-service and pay for reimbursement to the involve victims of problem. With proper actions and strategic planning, Toyota can be saved from devastate immediately and run the business as usual.

Stakeholder analysis can be use in order to plan the organizational strategy. Toyota should assess the impact of strategic planning process to the stakeholders’, the ideas and opinions from them and incorporate the feedback. Before that, Toyota must have clear strategic goals to achieve to make alertness on more stakeholders’.

Marketing Strategy that can be implementing by Toyota is developing the marketing mix and managing the marketing effort. Operational strategy such as implement advanced technology on safety and quality, design the modern pattern car and so on. This strategy is to full fill the consumer demands in the market. Toyota should grab the opportunities to attract consumer attention. Communication strategy is also the important strategy need by Toyota to concern on. They need to know on how to control the stakeholder, supplier, consumer and distributors. They should have highly motivated and talented employees to handle this hot issue. They can cooperate with mass media to help communicate with the external environments.


There have four types of strategies which are intensive, integrative, diversification and defensive. In intensive strategies consist of:

Market penetration: Seeking increased in market share for present’s products in present market. For example, Toyota always tries to improve their relationship with the investor with giving them the efficient rewards.

Market Development: Introducing present products in new geographic areas. For example, Toyota tries to expand their business into global market with different services for each country.

Product Development: Seeking increased sales by improving or modifying present products. For example, Toyota concerns on issue of faulty brakes so that they have recalled the sales for keep their brand name clean. They try to improve their mistake with apply ethics behaviour system.


The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor Ansoff and first published in his article “Strategies for Diversification” in the Harvard Business Review (1957). The matrix allows marketers to consider ways to grow the business via existing and/or new products, in existing and/or new markets – there are four possible product/market combinations. This matrix helps companies decide what course of action should be taken given current performance. First, Market penetration (existing markets, existing products); second, Product development (existing markets, new products); third, Market development (new markets, existing products); and fourth, Diversification (new markets, new products).


As a conclusion, Toyota needs to communicate with the stakeholder before making the final decisions. Toyota should know how to planning their strategy with conduct a research among the consumer, employees, distributors and etc. Without stakeholders’, Toyota might lost their business immediately.


The strengths and weaknesses in the system under review will strongly influence the volume of audit works necessary in relation to each area of operation in Toyota. The interplay between strengths and weaknesses will be evaluated by reference to their materiality in relation to the system as a whole and the existence of related ‘compensating controls’ which minimize (if not eliminate) the effect of identified weaknesses.


Audits have their own function in the management such as to identify under-used marketing resources and make recommendations for apply them more properly. Organizational audits focus on improving future performance; not just auditing historical or current practices. Therefore, it’s provides an important insight into the improvement of marketing planning. An audit gives an opportunity for input from other areas of the business. Finally, recommendations will be made based on the findings of the audit in improve the effectiveness of future marketing efforts.

To summarize, the audit is a structured approach to the collection and analysis of information and data in the complex business environment and is an essential requirement to solve problem.

There have two variables structured in organizational audit which is INTERNAL AUDIT (concerned with the controllable variables) and EXTERNAL AUDIT (concerned on the uncontrollable variables). External audit usually take the form of what can be described as environmental, market and competitive variables, starts with an examination of information on the general economy and then moves on the outlook for the health and growth of the markets served by the company. While internal audit are variables over which the company has complete control. The purpose of internal audit is to assess the organizations’ resources as they related to the environment and in comparison with the resources of competitors.


As the previous task, Toyota has internal and external audit committee in the company. The internal audit or marketing-organization-audit will cover a formal structure, functional efficiency and interface efficiency. Formal structure stress on if the management have adequate authority and responsibility for company activities that affect customer satisfaction and the strategic functions from marketing activities optimally structured (functional, product segment, end-user and geographical lines).

Functional efficiency develops on product-management-system-effectively and provides training, motivations, supervisions or evaluation for the marketing groups. Nevertheless, interface efficiency must solve the problems between marketing and manufacturing, R&D, finance, purchasing, accounting.

While external auditing or marketing-environment-audit cover on macro-environmental-audit and task-environmental-audit. This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.

ECONOMIC: Two types of national economies which are: Subsistence and Industrial. This economic environment will affect consumer purchasing power and spending patterns. The consumers spend carefully and desire greater value. This make the consumer spending patterns are changing. As an example, the Toyota Marketing Director needs to evaluate the income of consumer and how they spending patterns. This will help the Toyota Marketing Director to build up a proper strategy to introduce the new products.

Toyota might focus on the competitiveness in the marketplace either the competitors performances. For example, Toyota should know the market size, growth, geographical distribution, profits and the major market segments they will works on.

For competitors, Toyota has a few competitors such as Honda, Nissan and General Motor. Toyota must take advantages from competitors’ strategy and weaknesses, for example the technology competitors used and the market share.

Finally, suppliers are the most importance forces for Toyota. It’s because suppliers has their bargaining power that Toyota must agreed. This term stress the outlook for the availability of key-resources used in production and the trends are occurring among suppliers.


The internal audit function, though reporting to the Executive Director, Finance & Control next to the Audit Committee, is an independent institution within the Group. Its main role is to undertake independent and systematic reviews of the processes and guidelines of the Group and to report on their application and compliance.

The individual assessments are to be objectively reported to management and to the Audit Committee. All meetings of the Audit Committee have been attended by the Internal Audit Manager, the External Auditors, the Corporate Controller and the Head of Accounting & Consolidation.

The external audit function is to review managements’ responses to the external auditor’s interim reports, annual report and management letters; monitor developments in the external audit field and standards issued by professional bodies and other regulatory authorities; and oversee external audit arrangements in place at the various controlled entities or subsidiaries.

The internal audit committee is the board of director itself, so all the risk is under their responsible. The term of management audit purely defined as a company-wide-audit which includes an assessment of all internal resources against the external environment. In practice, the best-way to carry-out a management audit is to conduct a separate audit of each major management function. Thus the audit is simply part of the larger management audit similar to operations audits.


As a conclusion, Toyota need to understand the concept of audit in order to improve their performance then benefits the company and others parties. Because of the auditing, Toyota have achieved the success as nowadays, having the branch in worldwide and produce the high-standard quality products.


According to the “Toyota February US sales fall nearly 9%” scenario, Toyota has to do something to cover their business fittingly. The issue will affect the business images and performance of Toyota if doesn’t proper action taken.


The automotive industry is a great example of what happens when a few competitors gain a strategic advantage by setting a high standard in a critical area. Toyota and Honda have been the quality leaders for more than two decades, attracting car buyers who had been Ford, General Motors, and Chrysler customers but who wanted better reliability in their vehicles. Toyota rode its quality wave to worldwide leadership in car sales, only to slip at the same time competitors’ quality matched and even surpassed it.

The Economist recently described the problems Toyota faces and how it is addressing them (“Losing Its Shine,” December 10, 2009). While the company seems to have fixed its quality issues-Toyota had 18 of the 48 leading vehicles in the recent Consumer Reports reliability study-quality is no longer a big differentiator in the automobile industry. Instead, Toyota’s “vehicles will inevitably be judged increasingly on more emotional criteria, such as styling, ride, handling, and cabin design.”

Toyota has been operating in Europe since the early 1960s. In 2006, the company sold over 1,124,000 units in Europe. Based in Brussels, Belgium, Toyota Motor Europe NV/SA handles the wholesale marketing of Toyota and Lexus vehicles, parts & accessories, and manages Toyota’s European manufacturing and engineering operations.

Toyota Motor Europe


SWOT pest_logo_small

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company’s unique value chain. SWOT analysis groups key pieces of information into two main categories:

Internal factors – The strengths and weaknesses internal to the organization.

External factors – The opportunities and threats presented by the external environment to the organization. – Use a PEST or PESTLE analysis to help identify factors

The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization’s objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P’s; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.


1. Adequate enough funds

2. Exclusivity of brands – leading auto manufacturer


1. Limited market – demand

2. Damaged reputations


1. Government policy

2. Stabile political

3. Advanced Technology

S1O1: Toyota provides high-quality products as in agreement government policy due to the exclusivity.

S3O2: The exclusivity of brand linked with the stabile political, so that they can expand the business to worldwide.

W1O1: Toyota should pursue government policy whether it’s facing limited market for ensure the quality of products.

W3O3: Toyota needs to train new employees for implementing the technology they have.


1. Competitors in market

2. Media

3. Customer Perspective

S1T1: Toyota can challenger their competitors through their brand image and reputation as leader of car manufacturer.

S3T3: Toyota can use their exclusivity to attract media to announce their well-performance.

W2T2: The company should maintain their services and productivity to avoid their reputation damaged.

W3T1: The company can attract the competitors’ employees that have skill and knowledge to work with them.


As a multinational company, Toyota might strategic positions on their weaknesses and threats. The company should maintain their services and productivity to avoid their reputation damaged. For case the faulty brakes, Toyota can responsible to handle situations. Toyota has recall the sales and pay for the compensations to the victims. In order to repeat the mistake, Toyota must systematically doing quality control and corporate with safety organizations. The responsible person here is the management and employees. To protect the company from damaged, Toyota need a skill and experienced manpower in operational levels. So that Toyota can grab the opportunities to attract competitors worker with provides extra earning for them. For getting the quality products, Toyota must have close relationship with supplier and control them appropriately.


As the conclusion, strategic positioning and SWOT matrix are related and useful for Toyota to achieve their organizational objectives. Toyota must appreciate their success with giving some extra services to the environment and government.


Strategic planning is the process of developing and maintaining a strategic fit between the organizations’ goals and capabilities and its changing marketing opportunities. Same goes to Toyota organizations that have their own objectives for business. The explanation is as follow.



Task 1 is about develop strategic mission and vision of the company, this can be explain as Toyota need to inject sense of purpose into firms activity, provide long-terms direction, give firm strong identity’s and decide who they are, what they do and where they were head. A strategic vision widely shared among the employees function similar to how a magnet aligns iron fillings.

Task 2 is about setting objectives. The purpose of setting objectives is to:

Convert mission into performance targets.

Create yardstick to track performance.

Establish performance goals requiring stretch.

Push firm to be inventive, intentional, focused.

Setting CHALLENGING but ACHIEVABLE objectives guard against:



Internal confusion.

Status quo performance.

They should focus on two types of objectives which is financial objectives and strategic objectives. Financial strategic is about outcomes that relate to improving firms’ financial performance; examples increase earnings growth from 10 to 15% per year. Strategic objectives are mention on outcomes that will result in greater competitiveness and stronger long-term market positions; examples attain lower overall costs than rivals and achieve technological superiority.

Task 3 is concern on crafting a strategy. Strategy-making concern on how to:

Achieve desired strategic & financial objectives.

Out-compete rivals & win competitive advantages.

Respond to changing industry & competitive conditions.

Defend against threats to firm’s well-being.

Grow the business.

A strategic plan maps out where Toyota is headed, short and long range performance targets, and actions of management to achieve outcomes. A strategic plan consists of a strategic vision & business mission, strategic & financial performance objectives, comprehensive strategy for achieving the objectives.

Task 4 describes the implementing strategy. Implementing strategy involves creating fits between way things are done & what it takes for effective strategy execution, executing strategy proficiently & efficiently and producing excellent results in timely manner. Most important FITS are between strategy AND organizational capabilities, reward structure, internal support systems and organizational culture.

Task 5 is concerning on evaluating performance. None of the tasks of strategic management are a one-time only exercise when times & conditions change and new managers with different ideas take over. Manager must constantly evaluate performance, monitor situation & decide how well things are going and make necessary adjustments. Corrective adjustments can entail altering firm’s long-term direction, redefining the business. Modifying the strategy and improving strategy execution.


The conclusion is Toyota need a strategic planning when run the business. The strategic planning must start with realistic objectives and know the functions of each member. The process can help Toyota to perform well and to regains the trust of consumer.









SWOT Analysis Toyota.


New investment by Toyota in factories in the US and China saw 2005 profits rise, against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the company has the right mix of products for the markets that it serves. This is an example of very focused segmentation, targeting and positioning in a number of countries.

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In 2003 Toyota knocked its rivals Ford into third spot, to become the World’s second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management).


Being big has its own problems. The World market for cars is in a condition of over supply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan. Therefore it is exposed to fluctuating economic and political conditions those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market. Movements in exchange rates could see the already narrow margins in the car market being reduced.

The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labour. So if the car market experiences a down turn, the company could see over capapacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing.


Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota’s interest and investment in hybrid R&D.

Toyota is to target the ‘urban youth’ market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at their rear! The narrow segment is notorious for it narrow margins and difficulties for branding.


Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to recall 880,00 sports utility vehicles and pick up trucks due to faulty front suspension systems. Toyota did not g ive details of how much the recall would cost. The majority of affected vehicles were sold in the US, while the rest were sold in Japan, Europe and Australia.

As with any car manufacturer, Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost daily, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel. The key economies in the Pacific, the US and Europe also experience slow downs. These economic factors are potential threats for Toyota.

Thanks to the dedication and hard work of indivduals who make up the Toyota family, Toyota has become the forth biggest automaker in North Amercia. Here you will find some of the many figures behind that fact.


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