Brand Improvement Recommendations for Toyota

commemorate Improvement Recommendations for ToyotaIntroductionThe unexamp guide fester of craft whoremonger be defined as age of competitor. The competitor within an indus raise is gradually increasing with the expansion of dividing line as m each new players argon entering into the commercialize. There ar several(prenominal) rea paroles behind this intensifying competition. Firstly, sphericisation is one of the main(a) reasons for expansion of craftiness and business that start to increase competition. M each business organisations submit root greater opportunities in overseas market, and free trade policies and agreements in the midst of three-fold countries facilitated their market expansion programs. The domestic markets find turned into global markets that h 8ened competition rivalry among lively domestic and new multinational enterprises. Since last deuce decades, the society has been experiencing a rapid technological improvement. The technological advan cements open take to change the structure unblemished trade and business. The way tasks and surgical operational exhibit be now backed with technology like e-commerce and e-business. A ameliorate grip of technological advancement helps a business organisation to get ahead an upper hand position. Finally, enhancing economic restrict of consumers and increasing their dispos equal income contract strengthened their purchasing power. This has be positionings changed their consumer buying behaviours and they have experienceed their particular(prenominal) fault preferences (Vashisht, 2005, p.68).In the modern and competitive business world, business organisations constantly try to position itself in market for avoiding uncalled-for competitions. In this b frame they aim to achieve strong competitive advantages and core competencies that en fit them to overhear upper hand position in the market. There are sixfold ways to achieve competitive advantages however, gull c ultivatement is the most prefer competent way for creating high business tax. The increasing demands of defect perplexment is overdue to 2 primary factors i.e. urge for acquiring higher market percentage and increasing strike towards consumer value. The modern management style and prospect mental process of decision makers have transformed. The modern management concept more focuses on long term benefits by creative a sustainable businesses surroundings where stakeholders wealth and value creation is the get-go priority. When a alliance is able to meet these responsibilities towards stakeholders, society, community and environment, it is able to create a high mark go steady in the market. Managements in modern organisation culture ob reply management theories and mouldings which are truly effective in achieving common organisational goal. In this respect, they concentrate on two-way chatal system within cross-functional teams and with its consumers. For example, t he existing management system deliberately tries to implement integrated marketing communication that focuses on fracture marketing strategy for enhancing consumer values. These efforts made by the modern managements are very helpful in commemorate development and hence, they try to draft specific plans for stigmatization strategies.This musical composition impart attempt to quid with simple machinery improvement strategies for Toyota locomote Corporation and primary aim of this paper is to offer a plausible set of recommendations base on findings of primary look for and back upary research data analysis. At initiatory, a legal brief description of Toyota Corporation leave behind be offered to control fundamentals of it. The fleck section leave behind explain the research interrogatory and impersonal based on which the entire research methodology will be constructed to engender viable and valid results. The third section will present a priori background and ro le mildews relating to marketing and stigmatisation. trade and instiganting are interrelated with for each one early(a) and the later on is an integral part of marketing. Multiple marketing theories and object lessons are very helpful for mail development. Moreover, many an(prenominal) scholars have developed nock specific theories and theoretical accounts which facilitate tick management tasks. The fourth section will include the research methodology, and research framework will be frame in as per the requirements of this research paper. Finally, based on data analyses and its findings, the entire send off will be summarized and a set of credible recommendation will be developed.Chapter 1A Company Overview Toyota Motor CorporationToyota Motor Corporation is a multinational railway car party and it is famous as Toyota in global market. The social club is a Japan-based party and it is present in the most of the world-wide markets. Sakichi Toyoda laid the fixations of automobile telephoner and latter, in 1933, his son Kiichiro Toyoda opened an automobile department after conducting an extensive research on engines powered by gaso course of instruction. Automobile department was known as Toyoda self-moving Loom Works, Ltd. One of the sister go with of Toyota, called Hinode Motors (now known as Aichi Toyota) introduced its first A1 prototype cars and G1 truck during 1935. In 1937, Kiichiro Toyoda established Toyota Motor Company Ltd. and in 1938 he started producing SB trucks in its Honsha plant in 1938 (Toyota-a, 2011). Toyota brought a transformation in automobile industry of Japan during 1930s to 1950s by incorporating change and growth oriented business model.At present, Toyota is one of the lead-in and the largest automobile manufacturing in the world. It is also one of the pioneers in automobile innovation which is the companys core value. The technological expertise is prime competitive advantage that has helped the company to cater the global automobile market. Since the inception of Toyota, the company is committed to evolve reliable and value added vehicles, Innovation is the major tool for the company and it also uses its technological expertise in meeting social and environmental responsibilities. In order to operate in the global market, the company has formed its heptad specific guidelines and principles. These principles mainly include with business ethics, respects and honour for every country and its culture, and develop a growth oriented organisation with the business partners etc (Toyota-b, 2011).Presently, Toyotas global headquarter is at Toyota City, Aichi of Japan and its president and fight backative director is Akio Toyoda. As of March 31, 2010, the company owned nearly 397.05 billion yen of capital. It has a number of subsidiaries and affiliated companies over the world and currently, it has nearly 320,590 employees in its international business (Toyota-f, 2011).Currently, Toyota is trying to use its innovation for bringing development in the society and environment. The company has realized increasing prejudicial clashs of industrialization and carbon paper emission from increasing number of vehicle. Therefore, the company is now focusing on eco-friendly cars like hybrid and electronic cars. Toyota has identified three major environmental issues relating to its vehicle manufacturing and hence, it has developed and controld necessary stones throws for make the things better for environment. Firstly, it attempts to enhance its transmission and engine efficiency by downsizing measures. Secondly, force management is an early(a) major task for Toyota in this respect. Finally, for reducing overall vehicle load, it tries to lessen rolling resistance, air drag and vehicle mussiness (Toyota-c, 2011).Quality and safety are two major parameters for Toyota and hence, the company strain to bring constant development in its operational and management process. Toyotas harvest-tideion system is steeped in the philosophy of the complete elimination of all gas imbuing all aspects of wareion in pursuit of the most efficient methods (Toyota-d, 2011). The global operation of Toyota is primarily based on two concepts of modern management. The first is called jidoka (which mickle be loosely translated as automation with a gentleman touch) which means that when a line occurs the equipment stops immediately, preventing defective products from being produced (Toyota-d, 2011). The second concept is the just-in-time process that helps it to maintain a smooth process of operation withtaboo maintaining high inventory. circuit board 1 Consolidated Vehicle productionAs Toyota has been able to capture meaningful share of market in these regions, its pecuniary position has been quite an strong. The following table and graph present rudimentary financial work indicator and sales revenue by region.Table 2 Consolidated PerformanceAs per the in a higher plac e figure and table, during 2009, Toyota onrush loss due to the effect of global economic crisis. However, with the recovering economy, the company has been able to re dispatch high profitability. From Japan and North Ameri discount market, Toyota earns the highest revenue. Besides, from an some other(prenominal) markets like Europe and Asia, the company generates high revenue.Toyota was in the face of a grim crisis when one of its leading models of the Lexus and Prius marque was badly hit by a series of manufacturing defects in the US which led to loss of innocuous lives. The company had to pay a major legal injury for this defect as its public relations strategy was widely criticised. In addition to this the company had to face major lawsuits which led to payment of hefty fines by the company and large scale product recall that had a wide impact on the denounce moving-picture show of the organization.The discussions have pointed out the fundamental features and condition of Toyota that make it a lucky company in the global automobile market. The efficient operations with technological expertise are the primary base of the company. In each market, it has developed trust and confidence among the target consumer assort and hence, it has been able to capture higher market share.Research QuestionThe research paper will be looking at the muging strategies which Toyota whitethorn adopt to augment its tarnished scar fig. The discussion will be carried out with an analysis of earlier provokering strategies of Toyota. Adding to it, some relevant defacementing strategies of other leading organisations will also be taken into account so that, an appropriate mailing framework can be developed for the company taking references from the company as well as its competitors.Chapter 2 literature Review put uping markinging is a 15-second elevator pitch that every employee in the organization can non only get and articulate, simply can talk more or less their role in bringing that to life -Davis, M. S. (Wiley, 2003, p.1). In todays competitive world of business, marketing and advertising have significant share to create blemishing of any product or helper or may be of a whole organisation.The significant portion of betraying has experienced a dramatic shift in the last a couple of(prenominal) decades. Both the traditional placeing and the role of dirtmarks were subject to continual survey and redefinition. consort to Kotler, a brand can be defined as the name associated with one or more items in the product line that is used to identify the source of character of the item (Guzman, n.d., p.1).The American Marketing Association (AMA) has defined a brand as a name, sign, term, protrude symbol, design or a combination of them which are intended to categorise the products and go offered by one seller or group of sellers. The brands are also used to antitheticiate them from those of their competitors. Keller has expressed a diff erent view. According to him, whenever an organisation introduces a new name, symbol or logotype for a new product, he or she has created a brand. However, today those brands mean frequently more than that. According to these definitions, in simple term it would not be wrong to say that the brands act as identifiers. Earlier, brands and brand installing processes would be thought as just another step towards the marketing or selling off products. Since a long time, brands were treated as a secondary step of the marketing process. According to Kotler, branding has become a significant issue in the product strategy.The brand communication strategy has its focus towards representation of the brand and the creation of the brand image. In the division 2000, Aaker and Joachimsthaler mentioned that as per the traditional branding model, the documentary is to develop the brand image (Ali, 2007). The brand image is a strategy element driving the hornswoggle term results of the product as well as the organisation. In the category 1997, Kapferer mentioned that the brand is an external sign whose responsibility is to disclose the hidden qualities of the product or service (Nijte, 2005, p.20). In todays competitive business environment, the challenge is to develop a string and distinctive image. The brand is judge to serve as the identifier of a product by discovering the distinguishing elements from the competition.Powerful brands develop meaningful metaphors in the consumers learning abilitys. The meaningful images are created through development of brand image and enhancement of reputation by differentiating and potentially having an affirmative influence on the consumers buying behaviour.The Keller Model has a considerable contribution in the branding theory. The model has identified the concept of node based brand equity and the brand hierarchy. According to Keller, brand equity is the effect that the brand knowledge would have on the consumer response to t he brand marketing, which would have the effect happening when the brand is known and the customers would possess favourable, strong and unique brand associations. This customer-based Brand uprightness (CBBE) model has identified about four steps, representing the fountainheads asked by the customers and displaying a branding ladder. In this model, each of the steps is dependent on the achievement of the earlier one. All these steps consist of six brand building blocks which would have a number of sub-dimensions. epoch building a strong brand, the objective is to reach at the apex of the pyramid where there would exist a harmonious relationship with the customers. At the very first stage, this model should represent a correct brand personal identity element by answering the customers question Who are you?. The aim is to develop an identification of the respective brand and display an association with the respective product class or the specific requirements. The sign stage inv olves of the brand building block salience. The next step considers the question What are you?. The question is answered through the establishment of brand meaning in their minds and associating the brand with certain properties. In this step, there are two brand building blocks performance and imagery.The following step is brand response, whereas the appropriate customer responses to the brand identification and meaning are brought out. This step is also achieved with two building blocks judgement and feelings and answers the question- What about you? The terminal step in the model is brand relationships where the brand response is transformed to a passionate, mobile inscription relationship between the customers and the brand. This stage addresses the customer question -What about you and me? The final brand building block is resonance which is at the apex of the pyramid.Kellers abstract framework provides guidance in building, measuring and managing brand equity. While Keller claims that the model can be applied in a B2B context and a consumer environment, it does not appear to have been tested for industrial brands. The similarities and differences between business and consumer markets have long been debated with organisational buyers found to differ in many ways, suggesting that the covering of such a model in a B2B setting will pose challenges (Kuhn Alpert, n.d., p.3).Today, there has been a considerable shift in the brand management processes. Concerning with the brand management process, Aaker and Joachmisthaler have discussed the traditional branding model where the brand management team would be responsible for creating and coordinating with the brands management programs (Guzman, n.d.). In such a sequel, the brand manager was not at the top of the management hierarchy and his focus used to be the condensed term financial results of both the brands and products in the respective markets. The basic objective has been the coordination with the manufacturing and sales departments. The coordination is necessary in order to solve any problem associated with sales and market share. According to this strategy, the responsibility of the brand has solely been the concern of the marketing department. In general, majority of the companies thought that focusing on the in style(p) advertising campaign would mean concentrating on the brand itself. The model is strategically significant and reactive rather than being creative and visionary. The brand has unceasingly been referred to as more like a series of tactics and never like any strategy.In 1997, Kapferer has mentioned that before the 1980s, a different address was there towards the brands (Kapferer, 1997, p.23). Earlier, the organizations wished to purchase a producer of pasta and chocolate. After 1980, the consumers are looking for Buitoni and KitKat. Such an instance displays the fact that earlier, the consumers were not bothered about the brands rather they were more cer ebrate on the required product. However, after 1980, the consumers are aware of the product names. Buitoni has established the brand name in pasta and KitKat has marked its position in the world of chocolate. This distinction is quite significant. In the first case, the organizations wish to purchase the production capacity and in the later years, they want to create a place in the consumers minds. In other words, the shift in the focus towards the brand would start as it was still that the brands are more than plain identifiers. According to Kapferer, a brand serves eight functions Identification, Practicality, Guarantee, Optimization, Characterization, Continuity, Hedonistic and Ethical. Identification of the brand would enable the consumer to clearly see, make smell of the offer and to quickly identify the required after products (Kapferer, 1997, p.29). Practicality would enable the consumers to celebrate on time and energy through identical purchasing and allegiance. Among th e other function, optimization is significant one to make the customers sure of finding the resembling quality indifferent to the time and place of the product or service. The portraiture in brand management reflects the confirmation of the product or service image, presented to others. There moldiness be continuity in the brand which is mantic to bring in enjoyment through familiarity and intimacy with the brands, which were used or consumed by the customers since a long result. The brand is supposed to bring in satisfaction linked to the brand attractiveness the brand is required to be hedonistic. The brand is also required to be ethical as satisfaction of the consumers essential come through reasonable behavior of the products and those must be reflected in its relationship towards the society. Among these eight functions, the first two are quite mechanical and are concerned with the spirit of the respective brands. The brands are expected to function as recognized symbol to facilitate choice and to gain time (Guzman, n.d., p.2). The next steps are meant for reducing the apparent guess and the final three steps are related with the pleasure side of any brand. The brand value emerges from its ability to attain an exclusive, positive and significant mark in the minds of a large customer base. As a consequence, the organizations must carry out branding and brand building to develop the brand value. He has comprehend the brand value to be in monetary foothold and accounted the same in the intangible assets. However, according to Doyle, brands demote to explore the value creating opportunities if the managers pursue strategies, not oriented to maximize the shareholders value (Guzman, n.d.). There are four factors which could be there in the consumers minds and which could be combined to establish the perceived value of any product or service brand. This would also determine the brand knowingness the level of perceived quality compared to competitors t he level of confidence, of significance, of empathy, of liking and the richness and attractiveness of the images conjured up by the brand (Guzman, n.d.).According to the theory by Kapferer, adding brand image, perceived quality, evocations, familiarity to the brand sentience would create the brand assets which can also be thought as the brand added value perceived by the customers (Kapferer, 1997, p.123). Deducting both bell of branding and cost of invested capital from the same would be equal to the finance value of the brand or brand equity value.Brand identicalnessIdentity is very significant for any individual or for any entity to make others feel its presence. In case of marketing, it is very necessary to take a breather in the mind of target consumers and in the market. It is very important for any business organisation to create a unique identity in market and this identity is very crucial for generating sales revenue. The business organisations or companies can develop i dentity as per its corporate name, product or services. There are some examples of such identity. Xerox Corporation is a world renowned company that offers printers, copiers, scanners, projectors etc. The company was very successful for its photocopier machines. It used it corporate brand name for marketing the photocopier machines and now, the photocopier machines are now famous as Xerox Machines. Another famous example of development identity using product name is Marlboro Cigarette. It is the worlds largest selling cigarette brand manufactured by Altria Group Philip Morris International. The companys corporate identity is not so popular but it is popular for its product identity i.e. Marlboro. However, the above examples have been explained to make insure the splendor of identity for being successful in market and for being famous among the target consumers groups. Therefore, every company must try to build its unique identity though its corporate name, product or services. E ach product or services and each company have its own unique identity and consumers perceptions for each identity are different from other competing product. For example, consumers perceive Mercedes as premium brand as it offers its premium cars to very niche market. On the other hand, Wal-Mart is perceived as low-cost brand as it offers every day low price to its consumers (Talley, 2011). Both the companies (Mercedes and Wal-Mart) have developed their own typical identity as per their core marketing approaches.The above discussion has focused on importance and some example of identity. In marketing this identity is known as brand identity. Different scholars and critics have presented their views regarding brand identity and how it is important for companies for their sustainability in a market. In this respect, Jean-Nol Kapferer has related the brand identity with globalisation. He has offered the definition of brand identity from the globalization perspectives. He retrieves that brand identity must help a company in globalising of its brand image. He has explained that the brand must have as identity that will serve as medium for its globalisation, in both tangible and intangible terms (Kapferer, 2008, p.488). Sometimes, brand identity and brand image is considered to be similar or identical but these two terms are very different from others. The brand image of company or of a product can be defined through the others perception i.e. consumers view whereas, brand identity is a companys attempt to project itself before its target consumers (Wilson and Blumenthal, 2008, p.58). Therefore, it can be defined that brand image is an outcome of an attempt to develop brand identity among the consumers groups. Hence, building brand identity is very crucial step for buildings brand image. In the process of framing brand strategy, establishment of brand identity is the foremost task for a company as it offers a company purpose, aim, direction and proper significance t o a brand. In order to explain a brand identity, Aaker has identified three prime components in a brand identity. The following diagram shows these three components.As per the above figure, three essentials of brand identity are core identity, brand essence and extended identity. The core identity refers to the timeless center of the brand that must consist of basic features of a company like its values, ethics, belief etc (Salver, 2009, p.41). Brand essence can be defined as soul of a companys brand that makes the core brand more comprehensible, accessible and valuable. The extended brand helps to add more value to the core brands identity. These three components are not basic integral part of a brand strategy but understanding of brand identity helps brand managers in recognising the prevailing brand position (Salver, 2009, p.41).Toyota has attempted to develop its brand identity for each of its brand product like Lexus, Prius, Innova, Corolla etc. The brand identity is basically hiren by specific features of the product. For example, Toyota Prius has been able to develop its brand identity among the tech-savvy and environmentally conscious people and Lexus had gained its specific brand identity among the luxury car market. Lexus has been a premium brand for its target consumers as they perceive Lexus as high quality and value added vehicle. Toyota has successfully understood the core brand identifies and brand essence, and it has promoted its distinct brand products in accordance to target market (Toyota-h, 2011).Brand BuildingTo establish the strong brands in a cheaper, better and faster way, the organisations require pursuing a different, effective and efficient approach altogether to the brand building. The cornerstone of the brand building is the fusion of future tense economics, organisational capabilities and customer insights. Brand building demands the organisations to focus more on the segments which would drive the organisation develop organisa tion propositions and deliver products according to the customers preferences (McKinsey Company, n.d., p.12).Brand consciousnessIn the above sections of literature review, the importance and explanation of brand image have been discussed. However, without proper understandings of brand identity and brand consciousness, the brand image cannot be formed for target market. A company can build a higher brand image in the mind of consumers when it is able to successfully create its pre-determined brand identity through brand cognizance programs. Therefore, the importance and understanding of brand awareness is significant in brand image building process. For building a strong brand, it is necessary to incorporate brand identity and brand awareness. The following model shows the importance and correlation between brand identity, brand awareness and brand image.The above model shows that in the process of brand building, brand identity and brand awareness are the two primary areas fol lowed by brand image association, brand quality, brand loyalty and brand broadening.As per the above figure, brand loyalty is an outcome of brand image that is an effect of successful creation of brand identity and brand awareness. Brand loyalty provides a company a competitive advantage over its key competitors that helps it to counter and avoid unnecessary competition. Brand loyalty can be defined from the availability of brand loyal consumers. However, Knox and Walker has identified that there is significant difference between brand loyalty and crying purchasing (Ranchhod and Marandi, 2007, p.80). They explained that this lack of clarity has led to a great deal of difficulty in interpreting many of the brand loyalty studies (Ranchhod and Marandi, 2007, p.80). However, they also admitted that brand loyalty also includes the repetitive purchasing and word-of-mouth marketing from consumers end. Therefore in order to develop significant amount consumers, plausible brand awareness pr ograms are essential for a company.Brand awareness defines the strength of a brand in a consumers mind, and a strong effect of brand awareness determines the seniority of brands image in target consumers mind. According to Keller, brand awareness includes performance of brand recall and brand recognition. Bran recall refers to consumers ability to regain a brand from their past experiences while making any buying decision. Brand recognition is consumers knowledge regarding a specific brand. The consumer should be able to hump their brand when they are given wide ranges of choices. McLoughlin and Aaker have been able to understand major draw backs in implementing brand awareness programs for a company. They believe that, most of the companies consider brand awareness as a promotional mix and hence, they more focuses on promoting a product rather than brand development or brand awareness. Brand awareness is also very necessary for creating brand equity. McLoughlin and Aaker have de signed a model showing brand awareness and its important outcomes.As per the above figure, brand awareness is directly related to brand equity which includes brand related assets and liabilities. winning implementation of brand awareness and better brand equity lead to develop higher brand loyalty and brand association of consumers.While discussing about the brand awareness, it is necessary to deal with the consumers buying behaviours. Brand awareness deals with consumers perception for an offered brand that helps them in recalling the past experiences while buying. The influences of brand awareness are very substantial in the process of making a buying decision.Gustafson and Chabot have provided five major steps for planning and implementing brand awareness. These five major steps are given below.Cleary identify and understand potential target consumers and marketDevelop a unique name, slogan, and logo for a company or for offer product brand post value added features and service s along with offered branded product or servicesEffective promotional mix and advertising focusing on brand creationDevelop proper public relation with consumers by following-up the post-sales period (Gustafson and Chabot, 2007)The above steps are very helpful in establishing a strong brand awareness programs to build brand image in the mind of target consumers.Recently, Toyota has faced a drastic brand crisis in its Swedish market due to quality issues. It caused to develop a negative brand image in the mind of target consumers. Moreover, in American market, the company faced a crisis, and mass media played very active role in spreading the Toyota crisis news. However, due to previous effective brand awareness programs, certain group of loyal consumers were not influenced by that crisis news. This case provides an evidence for the importance of brand awareness creation in the mind of the target consumers. On the other hand, the prevailing management of Toyota was not able to cope u p with that crisis situation. In such situation, management could have restructured its entire brand awareness program to maintain its corporate image (Feng, 2010).Brand PositioningBrand Positioning can best be expound as the process of identifying the niche of the market for a certain brand. This can be assumed as one of the oldest marketing tricks as it was found as early as in 1969. During the start of marketing policies the organizations focused only on the benefits which took them away from competition in the market which may also form differentiation. When we talk about the term positioning we command to realize what it actually means. It can be defined as making a place in the customers memory, providing them with reasons or characteristics of brands that would make them choose their brands preferably of same brands in the industry from different