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The Key Elements of Toyota Marketing Strategy

Sam|
November 22, 2024|
17 min read

Toyota is hands-down one of the best car makers in the world. This Japanese company has been around for almost a hundred years, and they’re still at the top of their game as one of the world’s biggest car companies in 2024.

They didn’t become number one overnight; it was a slow and steady climb. But they got there through efficiency and a strong commitment to quality, and you can see that in all their marketing activities.

In this article, I’m going to break down Toyota marketing strategy and how they made the whole world recognize the quality Japanese can deliver. Let’s rev the engine!

Toyota Introduction

Toyota Introduction

Toyota Motor Corporation, established in 1937 by Kiichiro Toyoda, is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. Over the decades, Toyota has grown into the world’s no.1 automaker, renowned for its commitment to quality, innovation, and sustainability.

Toyota engages in the manufacturing and sales of motor vehicles and parts. The automotive products include passenger cars, trucks, minivans, related vehicle parts, and accessories. The company also develops intelligent transport systems, provides financial services, and builds robots.

Toyota Branding Strategy

Toyota Target Market & Audience

The target customers of Toyota are in the age group of 30-50 years old with middle-range income and looking for automotive vehicles with good value for money. The brand appeals to individuals and families seeking reliable, safe, and efficient transportation solutions. Additionally, Toyota targets environmentally conscious consumers through its extensive lineup of hybrid and electric vehicles.

Brand Mission

Toyota’s mission is to “deliver outstanding automotive products and services to our customers, and enrich our community, partners, and environment” This statement underscores the company’s dedication to delivering quality vehicles and exceptional customer service.

Brand Vision

The company’s vision include:

  • Beyond Zero Vision: Reach beyond carbon neutrality with their products, services, and operations, and find new ways to make a positive impact on our planet and society. This initiative highlights Toyota’s commitment to environmental sustainability and social responsibility.
  • Community, Collaboration, and Change: In partnership with community organizations, Toyota strives to “improve access to opportunities and create limitless possibilities for all—now and in the future.” This focus on community engagement and collaboration underscores the brand’s dedication to fostering positive societal change.

Brand Core Values

Toyota’s core values include:

  • Continuous Improvement (Kaizen): A commitment to ongoing enhancement of products, services, and processes.
  • Respect for People: Valuing employees, customers, and partners, fostering a culture of trust and collaboration.
  • Customer First: Prioritizing customer needs and satisfaction in all business activities.
  • Integrity: Upholding honesty, transparency, and ethical conduct in all operations.
  • Respect for People: Valuing their employees, customers, and partners, fostering a culture of diversity and inclusion.

Toyota SWOT analysis

Toyota SWOT analysis

Alright, let’s do a SWOT analysis of Toyota! This means we’ll look at their Strengths, Weaknesses, Opportunities, and Threats. It’s a great way to understand the company and how it can use its resources to succeed. You can use this same type of analysis for any company you’re interested in.

Toyota’s strengths

  • Brand recognition: Everyone knows Toyota! They have tons of experience in the car industry.
  • Variety of products: They offer a wide range of cars for different needs and lifestyles.
  • Efficient production: Their assembly line is top-notch, making their cars both affordable and well-made.
  • Global reach: Toyota is a huge player in the car market, both domestically and internationally.
  • Cost-effective: They’re known for making quality cars at lower prices compared to some competitors. This helped them break into the US market back in the day.
  • Lean production: They’re efficient in their manufacturing, distribution, and even servicing of their cars.
  • Reputation for quality: Toyota has built a solid reputation for reliable and well-made cars.

Toyota’s weaknesses

  • Hierarchy: Their company structure can be a bit rigid, which can slow down decision-making.
  • Product recalls: They’ve had some big product recalls in the past, which hurt their image.
  • Secrecy: They tend to keep things close to the chest, which can make it harder to respond to problems quickly.

Toyota’s opportunities

  • Eco-friendly focus: Toyota is committed to making cleaner cars, which is great for their image and the environment.
  • Investment in solar power: This aligns with the growing trend of electric cars.
  • Regional specialization: They can tailor their operations to better serve different parts of the world.
  • Technological innovation: Toyota is known for its technology, and they can use this to stay ahead of the competition.
  • Woven City project: Their prototype city project shows they’re thinking about the future and could become more than just a car company.

Toyota’s threats

  • Fierce competition: The car market is super competitive, with new models and technologies coming out all the time.
  • New players: Companies like Tesla are shaking things up and could steal customers from Toyota.
  • Rising costs: The price of materials like steel and rubber can affect their profits.
  • Changing standards: They need to constantly adapt to new safety and environmental regulations.
  • Economic slowdowns: When the economy isn’t doing well, people buy fewer cars.
  • Global events: Big world events can impact their overseas operations.

Toyota 4p’s marketing mix

When thinking about Toyota cars, people think of durability, sustainability, quality, safety, reliability, and innovation. To build this reputation among target customers, Toyota needs a suitable marketing strategy. In this section, we will break down the four pillars of Toyota’s marketing strategy, including Product – Place – Pricing – Promotion.

Toyota’s product strategy

Toyota's product sale

Toyota has a diverse set of products. Each line of automobiles has its own organizational output for a group of customers. The following are the product lines that Toyota’s products have:

  • Toyota automobiles
  • Lexus automobiles
  • Marine products
  • Welcab series
  • Spare parts and accessories
  • Engines

The automobiles are the most popular, or the signature products of the company. Lexus automobiles are the luxury lines of cars. On the other hand, the Welcab automobile series are modified for people with disabilities and the elderly. With other lines of products, Toyota reaches a wide market and reduces the risk from focusing on only one market through a diverse product mix.

A product of high quality is often self-marketed, and it is what makes Toyota vehicles so desirable. With nineteen car models, the categories for the car of Toyota are:

  • Passenger – small, medium, and large-sized vehicles. We can name Yaris, Aurion, Tarago, Camry, Ruckus, and Corolla.
  • SUVs and 4WD – Rav4, Parado, Kluger, and Landcruiser 200
  • Hybrid – Camry and Prius
  • Commercial – Coaster, Landcruiser 70, HiAce, and HiLux

Toyota really cares about keeping its customers happy. They even have a whole research center dedicated to understanding what customers want and expect from them.

To deal with the ups and downs of the oil market, Toyota created a line of hybrid cars. Their first hybrid, the Prius, gets amazing gas mileage – 48 miles per gallon! And because people love sporty cars, Toyota also offers models like the Supra. They have a huge range of vehicles to choose from!

Toyota’s place strategy

Toyota's place sale

For Toyota, dealerships are the main way they get their cars to customers. So, dealerships are a really important part of their marketing strategy. Toyota knows that it needs to make it easy for people to see and buy their cars.

The salespeople at each dealership work in teams, kind of like how an assembly line works. They’re not just good at selling; they also know everything about the cars, can take orders, collect data, and even help with financing and insurance.

Toyota focuses on making cars that people actually want. They even have salespeople in Japan who go door-to-door to promote their cars!

A typical Toyota dealership tries to keep costs down while providing great service and high-quality products. Toyota organizes its suppliers into different levels. The top-level suppliers work closely with Toyota on developing new cars, while other suppliers focus on making individual parts. This system allows Toyota to be flexible and share workers with suppliers when needed.

Toyota’s pricing strategy

Toyota's pricing sale

Toyota became a top car company by making innovative cars and investing heavily in marketing to reach customers worldwide. They make high-quality vehicles at reasonable prices.

Instead of calculating the selling price, Toyota calculates the profit first. So it can sell with the formula of price – cost price = profit. The company believes that the market mechanism and consumers determine the selling price.

Another smart thing Toyota does is provide detailed vehicle history report. This can help them sell more cars and even get higher prices. The key is to be transparent in those reports – don’t hide any problems or recalls.

Toyota is also really good at reducing waste. This helps them increase profits over time because they can offer good prices on high-quality, low-cost vehicles. In 2017, they sold over 10 million cars worldwide! Their cars range in price from around $19,000 to $80,000, depending on the model and features.

Toyota’s promotion strategy

Toyota promotion strategy

Toyota is really smart about how it promotes its cars. They use a whole bunch of different ways to get the word out, like billboards, radio ads, newspaper ads, flyers, TV commercials, online ads, and even good old-fashioned word of mouth.

They also use catchy slogans to make people remember their brand. Since 2004, the slogan has been “Moving Forward. However, a new tagline was used in the US market as “Let’s Go Places.”

At their dealerships, Toyota uses personal selling, where salespeople talk directly to potential customers and promote the cars. They also focus on building good relationships with the public and are dedicated to being environmentally friendly. This helps create a positive image for the brand.

Sometimes, they offer special deals to customers, but they don’t do big sales promotions very often. They also use direct selling to offer better deals to companies.

Toyota Core Marketing Strategies & Campaigns

Toyota’s marketing strategy varies depending on the market requirements of different geographical locations.

In this section, let’s see the core marketing strategies of Toyota, as well as some noteworthy campaigns, and see if the company is the role model that other automotive companies need to learn.

Customer-Centric Approach

Customer-Centric Approach

Customer first is one of Toyota’s core tenets. And by customers, the company doesn’t mean just the end customer. On the production line, even the person at the next workstation is considered a customer. This leads to great team work and gradual analysis to make sure everything is perfect. Put it another way, Toyota aims for continuous improvement to provide the best products for customers, both outside and inside.

Toyota dealerships are known for their friendly and helpful staff who go the extra mile to assist customers. They offer services like test drives, vehicle maintenance, and even personalized consultations to ensure a positive ownership experience.

They actively seek feedback from their customers through surveys, focus groups, and social media interactions. They use this feedback to improve their products, services, and overall customer experience.

In 2019, Toyota proudly introduced the new model of Prius – a hybrid automobile and invited consumers to go more places in the “It’s Unbelievable” campaign. The company used smart and joyful advertising to demonstrate the key advanced technology features of the car in many environments of snow, highway, and parking. What is special is that the campaign connected with new audiences like Hispanic, Asian Indian, and East Asian.

Global Reach With Regional Focus

Differentiation Toyota marketing strategy for each region

Alright, let’s talk about going global while staying local – something Toyota does incredibly well. Toyota understands that a one-size-fits-all approach doesn’t work in a diverse world. They tailor their marketing campaigns and even their product offerings to resonate with specific regions.

For example, their trucks might be marketed differently in the US, where rugged individualism is valued, compared to Japan, where practicality and fuel efficiency are priorities. In a country with special weather conditions such as Saudi Arabia, Toyota provides specific automobiles to suit their customers.

Even with something like slogans, Toyota decided to make it different for each country. For Australia, Toyota’s slogan is “Oh What a feeling!”. For Europe, the slogan turns into “Nothing is impossible”. While in Japan, the company’s slogan changes very often; the current version is “Start your impossible” since 2017. And in the US, the slogan has been “Let’s go places” since 2012.

The differentiation strategy adopted by Toyota helps the company produce products that are different from those of competitors. The strategy allows Toyota to price the products strategically.

A large dealership network across the globe

Toyota Marketing Strategy across the globe

Ever since Toyota is established, the founder Kiichio Toyoda has passed on the view of marketing as a critical tool to build a successful company. And the dealership network is the most focused marketing channel that Toyota uses to connect with customers. In 2015, Toyota’s network had 180 dealerships with nearly 4,700 sales and service outlets inside of Japan. Out of these, only 15 dealerships are owned by the company, the rest are independent.

Outside Japan, Toyota automobiles are sold through 170 distributors in nearly 190 countries and territories. The company maintains the large network of dealers through the distributors. Toyota also has factories in many parts of the world, manufacturing or assembling vehicles for the local markets of Japan, Cana, the UK, the US, South Africa, France, Brazil, China, Vietnam, Mexico, Thailand, Russia, and more.

A company’s culture of innovation

Toyota Marketing Strategy

Toyota grew really quickly, but their employees seem to be handling it like champs. To make sure everyone’s on the same page, Toyota has something called “The Toyota Way.” It’s basically a set of values and guidelines for all their employees around the world.

It boils down to two main things: Respect for People and Continuous Improvement. This means Toyota employees are always thinking about the long term, solving problems, developing their skills, and finding ways to make things better. The Toyota Way encourages employees to never settle and to always look for ways to improve the cars they make.

Just look at the ambitious plan of building a whole futuristic city, we can see how Toyota aims for long-term success. This is also a positive brand image that makes consumers feel great about purchasing from Toyota. Who doesn’t want to be a part of the future?

Emphasis on Quality and Reliability

Toyota Emphasis on Quality and Reliability

Toyota has built a fortress of trust around its brand by consistently emphasizing quality and reliability. Here’s how they do it:

  • Warranty Programs: Toyota offers comprehensive warranty programs that provide peace of mind to customers. This reinforces their commitment to standing behind their products and assures buyers that they’re making a sound investment.
  • Legendary Durability: Toyota vehicles are known for their longevity. They just keep going and going, and their marketing cleverly reinforces this image. Think about those ads showcasing Toyotas conquering rugged terrains or lasting for generations within families. They’re subtly telling you, “This is a car you can depend on.”
  • Stringent Quality Control: Toyota’s manufacturing processes are meticulous, with a strong focus on quality control at every stage. This translates to fewer defects, lower maintenance costs, and ultimately, happier customers. And they’re not shy about highlighting this in their marketing, emphasizing their commitment to exceeding industry standards.
  • Customer Testimonials and Reviews: Toyota leverages the power of social proof by showcasing positive customer testimonials and reviews. When potential buyers see real people raving about the reliability of their Toyotas, it builds confidence and encourages them to join the Toyota family.

Digital Transformation

Toyota Digital Transformation

In today’s digital age, you can’t just rely on traditional advertising to reach your audience. Customers are online, engaging with brands through social media, websites, and mobile apps. And Toyota, despite being a legacy automaker, has embraced this digital transformation wholeheartedly.

Their website isn’t just a brochure; it’s an interactive hub where customers can explore models, configure their dream car, and even schedule test drives. This empowers customers and provides a personalized online experience.

Toyota actively engages with its audience on various social media platforms, including Facebook, Instagram, Tiktok, Youtube, X, and LinkedIn. Sharing not just promotional content but also lifestyle posts, behind-the-scenes glimpses, and interactive campaigns. They’re building a community, not just broadcasting messages.

They’ve embraced video marketing, creating engaging content that showcases their vehicles’ capabilities and features. From YouTube channels to collaborations with influencers, they’re using video to connect with a wider audience and tell their brand story in a more dynamic way.

Public Relations and Corporate Social Responsibility

Toyota Public Relations and Corporate Social Responsibility

Okay, let’s talk about PR and CSR – two areas where Toyota really shines. Toyota’s PR strategy goes beyond the occasional press release. They position themselves as experts in the automotive industry by participating in conferences, publishing research, and engaging in discussions about mobility and sustainability. This builds credibility and positions them as innovators.

Toyota sponsors local events, supports charities, and invests in programs that benefit the communities where they operate. This builds goodwill and strengthens their connection with the public.

When issues arise (and they do for every company!), Toyota’s PR team is quick to respond, addressing concerns transparently and taking responsibility. This helps maintain trust even during challenging times.

Toyota also invest heavily in hybrid and electric vehicle technology, reduce their environmental footprint in manufacturing, and support conservation efforts. This resonates with environmentally conscious consumers and strengthens their brand image.

3 Outstanding Toyota Marketing Campaigns

Stand Out in Every Sense

Stand Out in Every Sense campagin toyota

Launched in September 2024, this campaign showcases the 2025 Toyota Crown Family’s sophisticated design, modern technology, and high-end performance. The campaign emphasizes a driving experience that engages every sense and elevates the everyday.

The campaign includes a variety of short video spots, such as “Power Play,” “Room to Be Alone,” and “With a View,” as well as a 30-second and 15-second commercial titled “Tango,” directed by Jaron Albertin. Each spot portrays the Toyota Crown creating a moment where the world seems to melt away, highlighting its captivating features.

Life’s Grander in the Grand Highlander

Life’s Grander in the Grand Highlander Toyota campaign

In September 2023, Toyota introduced the first-ever 2024 Grand Highlander with a campaign titled “Life’s Grander in the Grand Highlander.” The campaign highlights the vehicle’s spaciousness, design, and powerful Hybrid MAX powertrain.

Developed with Toyota’s Total Toyota (T2) marketing model, the campaign features a unified creative style across various media, including linear TV, digital video, cinema, and paid social. High-profile placements include Thursday and Sunday Night Football, Premium Soccer, and the Billboard Latin Music Awards.

The campaign successfully positioned the Grand Highlander as a bold addition to Toyota’s SUV lineup, appealing to families and individuals seeking a spacious and powerful vehicle. The integrated marketing approach likely contributed to increased awareness and interest in the new model.

Start Your Impossible

Toyota Start Your Impossible

In April 2024, Toyota reignited its global “Start Your Impossible” campaign to build excitement for the Olympic and Paralympic Games Paris 2024. The campaign emphasizes the power of local communities rallying behind their athletes and Toyota’s belief that no journey is taken alone.

The campaign features a website of https://www.startyourimpossible.com/ and commercials like “Send Off,” highlighting communities supporting their athletes, and “Together Wins,” showcasing collective achievement. These narratives underscore the importance of community and support in achieving the impossible.

What you can learn from Toyota

Here is a quick recap of what you can learn from the Toyota marketing strategy:

  • To be a global company that keeps growing, you always have to put customers as an important factor.
  • Develop different strategies for each country and region.
  • Create a company’s culture to encourage innovation and long-term thinking.

Final Thought

Toyota’s marketing strategy is a well-rounded approach that combines innovation, customer-centric practices, and a strong commitment to quality. For businesses looking to learn from Toyota’s success, the key takeaway is clear: prioritize your customers, adapt to their evolving needs, and consistently deliver value.

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