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Marketing Project: Toyota Motor Corporation

University of East London

10th May 2016

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The Business Professional

2016

Figure 1: The larger-scale components of the Toyota Mirai – a hydrogen-

powered vehicle.

Source: NY Times, (2014)

POWER CONTROL UNIT

MOTOR FUEL CELL STACK HYDROGEN TANK

BATTERY

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Executive summary

In the past few years it has been tumultuous for the automobile industry.

So much so that the rising fuel prices, environmental concerns and changing

economic position of the consumers has directed them towards a change in the

market dynamics. There has been a diversification in the car portfolio, with a rise

in small cars, and hybrid vehicles along with a need for the low cost of

production.

This study is directed to understand the core objectives of the study,

which is to decipher the reasons behind the need to embrace the Production of

Hydrogen Vehicles by Toyota. The study further establishes the costs and

benefits associated with the manufacture of hydrogen vehicles for the

organization. In order to do so, this paper also predicts the industry trends, and

assesses the market of hydrogen-based vehicle, for the company.

The marketing plan evaluates the effectiveness of Toyota Mirai FCEV, as a

hydrogen fuel cell vehicle by the firm. It is noted as opposed to competition,

Mirai has a range of 502 km (312 mi) on a full tank and thus making it one of the

most efficient hydrogen-based models. So far the sale and delivery of the same

have been started in California, and has an estimated fuel cost at annually

US$1,250, as compared to market competitor like Hyundai Tuscan, who is

expecting a price of US$1,700 in fuel.

The marketing plan reflects that there is a need for the company to

associate itself with other brands to reduce the cost of production, and focus on

enhancing the portfolio of hydrogen fuelling across the world. It is also reflected

that there is a need to reduce the audience apprehension about the safety

limitations of a typical hydrogen vehicle. It is indicated that the company should

also introduce limited number of lease models in other emerging markets, to

increase the market presence of the product.

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List of Figures

FIGURE: Page:

1. Toyota Mirai – a hydrogen-powered vehicle……………………………………... 2

2. Depiction of alternate fuel vehicle rise…………………………………………….... 4

3. Different alternative fuel vehicles in the United States by fuel type…….. 5

4. Hydrogen fuel cell vehicle vs. electrical vehicle………………………………….. 8

5. Sales of Toyota Camry as compared to other sedans in the US…………… 11

6. Sales of Hybrids in the US………………………………………………………………… 12

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Table of Contents

I. Introduction…………………………………………………………………………………... 5

Marketing plan aim………………………………………………………………… 5 – 6

Structure of the report …………………………………………………………… 7

II. Situation analysis………………………………………………………………………….. 7

External environment:

Market Information.………………………………….……………………………. 7 – 10

PESTLE Framework……………………………………………………………….. 10 – 12

Product USP…………………………………………………………………………… 12 – 13

Competition Analysis……………………………………………………………… 13 – 14

Internal Environment Analysis:

III. Organization Analysis………………………………………………………………….. 14 – 17

SWOT Analysis……………………………………………………………………….. 17 – 18

IV. Marketing objectives and Strategies……………………………………………… 19

Goals and Objectives……………………………………………………………….. 19 – 20

Marketing Strategies……………………………………………………………….. 20 – 21

Marketing Mix……………………………………………………………………….... 21 – 22

V. Marketing Plan Implementation……………………………………………………... 22

VI. Evaluation and Control………………………………………………………………….. 23

VII. Reference…………………………………………………………………………………….. 24 – 25

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I. Introduction

Marketing plan aim

A Japanese automotive manufacturer Toyota Motor Corporation;

headquarters lies in Toyota, Aichi, Japan. Founded in 1973, the company is one of

the most modern automobile countries of the world, housing over 338,498

employees worldwide (Nkomo, n.d). The company engages in the production,

designing, and assembly, as well as the sales of a commercial vehicle like the

passenger cars, minivans, and SUVs (Nkomo, n.d). Toyota Corporation also deals

in the related parts and accessories of these products, and has offices in Japan,

most of the Asia, North America and Europe (Nkomo, n.d).

Over the years, the company has strived to excel in the automobile sector

and has gained mass acceptance with their reliable, stylish and sleek vehicles in

all ranges. The fact that the corporation often is associated with "value for

money", also helps the brand image. While the company has gained market

dominance for countless years, its place is frequently challenged by market

competition from both regional and international market. Also, the

environmental problems like Tsunami and Floods in the past years, have also

affected the supplies and export of their products (Nkomo, n.d).

Nkomo (n.d) notes that the past few years have been tumultuous for the

automobile industry. So much so that the rising fuel prices, environmental

concerns and changing economic position of the consumers has directed them

towards a change in the market dynamics. There has been a diversification in the

car portfolio, with a rise in small cars, and hybrid vehicles along with a need for

the low cost of production (Nkomo, n.d). Studies suggest that while countless

companies have strived to dive in this new portfolio, many have wondered about

the competition, and changing consumer preference, and blatantly waited for the

shift to usual, thus affecting their revenue in the process (Nkomo, n.d).

In the meantime, those who have adapted to change have diverged in

hybrid; plug-in hybrid, all electric, flex-fuel, CNG and fuel cell as an alternate

source of power, to conventional fuel (Harrow, 2008). In the wake of rising

global warming, environmental damage like oil spills and acid rains, along with

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air pollution and a threat of running out of conventional fuel supplies; many

automobile companies are striving to find an alternative transportation solution.

The consumer needs further perpetuate this perception; however, it is noted that

most consumers are concerned about the longevity of these vehicles, along with

the service quality of alternate fuel vehicle (Department of Energy [DOE], 2001).

In the wake of, which many companies are striving to strike a right balance.

Amongst several alternative fuels, hydrogen fuel cells work without gasoline,

cause limited to no pollution, and have quicker acceleration with longer driving

range (CAL-FIRE, 2009).

Many counters that fuel-cell vehicles are an improper solution to the fuel

crisis in the world, owing to lack of hydrogen infrastructure (CAL-FIRE, 2009). It

is further noted that government and corporate structures are having a hard

time expanding regarding this fuel' filling station. Furthermore, there are

concerns about the environmental impact of the creation of this fuel supply. It

cannot be denied that post-acceptance of such substantial investment, hydrogen

fuel can change the face of transportation, and offer the consumer a longer-

lasting solution (DOE, 2001).

This study is directed to understand the core objectives of the study,

which is to decipher the reasons behind the need to embrace the Production of

Hydrogen Vehicles by Toyota. The study further establishes the costs and

benefits associated with the manufacture of hydrogen vehicles for the

organization. To do so, this paper also predicts the industry trends, and assesses

the market of a hydrogen-based vehicle, for the company.

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Structure of the report

II. Situation analysis

External environment

Market information

As per Harrow (2008), even though the need for alternate fuel is rising

across the world, there is limited competition in terms of service and pricing. As

a result, while companies are looking at their gasoline - and diesel-engine

powered cars, yet there have been several advancements in the form of alternate

fuel vehicles, electric vehicles and cars with advanced diesel engines, which

allow the use of bio-diesel like in the case of Volkswagen (SEAI, n.d).

Marketing implementation and risk managementSMART goals, Risk control

Marketing goals and objectivesGoals and objective analysis, strategies: STP

Organizational analysis Product profile analysis, Infrastructure analysis, SWOT analysis

Situational analysisMarket analysis: PESTEL analysis, Product analysis, Competitor analysis

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A report by Energy (2015), notes that within the U.S, there are over 20

million alternative fuel cars on the road. While in many cases reduced carbon

emission is seen as a motivation for such choice, in many cases this change is

evident due to changing government regulations and fuel cost saving needs of

the buyers (Energy, 2015). As the world dwindles under depleting resources of

traditional fuel supplies, and rising economic burden associated with the same,

many consumers reflect on their relative independence from such tumult

through the use of alternate fuels. In the wake of such trends, there has been a

rise in the consumer choice for alternative fuel vehicle, as is represented by

figure 1.

Figure 2: Depiction of alternate fuel vehicle rise

Source: Ron books ltd, (2015)

As per a report by CAL-FIRE (2009), the industry standards are changing

with the passage of time, as a result with the passage of time new internal

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combustion vehicles are emerging. There is a rise in the re-emergence of

technology as is evident in the case of bio-diesels (SEAI, n.d). Other solutions in

this regard are pure plant oil-PPO, bio-ethanol, hybrid vehicles, electric cars and

gas based power sources like CNG, LPG, multi-fuel vehicles and hydrogen (SEAI,

n.d). A representation of trends based on these alternative fuel vehicles in the

United States is further depicted in figure 2,

Figure 3: Different alternative fuel vehicles in the United States by fuel type

Source: Department of Energy, (2009)

As per a study by Davis et al. (2003), even though gasoline and fossil fuels

are still dominating the market share in the automobile industry, yet interests

are dwindling towards greener solutions. While there is a quicker acceptance

towards electric and hybrid vehicles, it is reflected that while Hydrogen can be

mixed with natural gases, to create an alternative fuel for the internal

combustion engines, in the form of fuel-cell vehicles, the use of such technology

is limited by the lack of fuelling infrastructure (Davis et al. 2003).

It is reflected that so far most of the hydrogen driven vehicles are

provided by Toyota, Hyundai, and Mercedes-Benz (Energy, 2015). The products

of these companies are associated with gasoline, methanol, natural gas, or

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ethanol to reduce nitrogen oxide emissions (DOE, 2001). With the advancement

in the technology in the form of fuel cells, which are directed to interact

hydrogen and oxygen into electricity, with the emission of mere water, the

automobiles are moving to a rapid stride (DOE, 2001). As per a review by AGA

(2014), “FCEVs have the appeal of zero tailpipe emissions, with well-to-wheels

analyses projecting that FCEVs have the potential to have one of the lowest

emissions of all alternative technology options” (pg. 13).

So far Toyota launched its hydrogen-based initiative in the form of Mirai

FCEV in 2014, the same goes for Hyundai Tucson FCEV, and a possibility of

similar launch from Honda by the end of the year 2016 (IEA, 2015). Likewise,

other companies are striving to manage fuel, technology, and infrastructure and

storage challenge of this source of energy. In the recent times, it is acknowledged

that companies like Toyota have shared their patent with BMW for this power

supply (Zeigler, 2015). While in Japan the company has been associated with

Nissan for mass productions (Zeigler, 2015).

As opposed to their previous sales of limited vehicles with hydrogen,

Toyota is now striving to sell a few thousand of their hydrogen initiative, despite

the possible initial loss of revenue. It is further reflected that the company is

endeavouring to form association with investors, to establish hydrogen re-filling

stations in California and the US Northeast (Zeigler, 2015). Through the means of

the present review, the organizational variables regarding this innovation will be

considered, and a marketing plan for implementation is created.

PESTLE framework

Political - More and more government policies are incorporating the use

of a non-traditional and renewable source of energy for transportation (Energy,

2015). Developed countries like the USA, UK, and Japan, are facilitating the

change and are helping automobile owners with an option of improved source of

hydrogen plant and supply (Nageshwaran, n.d).

Economic - Hydrogen based cars are associated with quicker acceleration

and longer driving range (CAL-FIRE, 2009), however as opposed to electric the

cost of creation of the energy source, and usability and availability for the users

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become an important point of consideration. In addition, considering the techno-

economic parameters, it is indicated that there is a need to find the hydrogen

transmission cost as well, which is staggering even though Toyota promises to

have the financial backing (IEA, 2015).

Sociocultural – There is an increase in the trend of the economically

concerned individual who are looking for alternative fuel option in the name of

better energy and less burden on the environment. However, while there is an

acceptance regarding the hydrogen-based model, many are concerned regarding

the security concerns at the time of refuelling, as opposed to electric or hybrid

based models (Nageshwaran, n.d).

Technological – Toyota has always been associated with innovation, for

its hybrid and consumer-centric models. However, it is reflected that in the

presence of market competition from an electric and hybrid vehicle, there is a

need to consider the viability of the hydrogen vehicle in the present market.

However, in the wake of changing trends, it is noted that low emission and better

product output are seen as plus points for a hydrogen-based vehicle, and would

be reasons for driving consumer preference (Energy, 2015). Since, Toyota has

shared their patents with competitors, and introduced measures for mass

marketing, along with focused on raising fuelling stations, the company is bound

to be benefitted by this innovation, albeit later than sooner (Zeigler, 2015).

Legal – Need to train and aware the users on the use, and refuelling of

vehicles with hydrogen owing to the security measures (Nageshwaran, n.d). The

company needs to meet industry standards of awareness, and protection at these

stations and production houses as well.

Environmental – It is learned that hydrogen coming from a renewable

resource like landfill gas are considered renewable. However, within the US, it

comes from methanol-natural gas reforming (over 95%); thus, it is seen as a non-

renewable source of energy, thus adding to the fuel pressure of the world (Seba,

2015). Even in the case of hydrolysis, a need of combustible material is required,

thus defying the argument of hydrogen being a renewable source of energy

(Seba, 2015). However, the carbon emission in such mode of transportation is

contained, and so is the level of air pollution (Harrow, 2008).

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A reflection of the wastefulness of hydrogen cells to energy electric vehicles is

further represented through:

Figure 4: Hydrogen fuel cell vehicle vs. electrical vehicle

Source: Seba, (2015)

Product USP

Marketed as the "turning point, from the inside out" of the automobile

industry, Toyota Mirai FCEV is a hydrogen fuel cell vehicle. It is a product of

years of research and is deemed as a safe fuel system. The company strives to

consider the safety of the consumer through the means of high technology leak-

proof tanks for storage of hydrogen. In addition, it is noted that in a high-speed

collision, the sensors in the car stops the flow of hydrogen, by shutting the

output valve. This, in turn, increases the safety of the car, even in a high-risk

situation.

Further considering safety as its high point, Toyota also promises to hold

a unique hydrogen dispersion system, for any free hydrogen in the vehicle. The

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strength of the car lies in its carbon fibre wrapped, a polymer linked tank, which

absorbs high energy. Further, the product has been climatically tested and been

given miles of road testing to verify the technology. Other important features of

the product include its collapsible steering column and distribution of impact

force around passenger space. In order to gain consumers, the company is also

providing, 3 years of complementary fuel through trailblazer support program.

There are also purchase support groups under this program (Trudell and Jie,

2014).

Unveiled in November 2014 at the Los Angeles Auto Show, Mirai has a

range of 502 km (312 mi) on a full tank, thus making it one of the most efficient

hydrogen-based models (Trudell and Jie, 2014). So far the sale and delivery of

the same have been started in California and has an estimated fuel cost at

annually US$1,250, as compared to a market competitor like Hyundai Tuscan,

who is expecting a price of US$1,700 in fuel (Trudell and Jie, 2014).

A further point in support of this product is the creation of demonstration

hydrogen fuelling stations in Japan (JX energy, 2013). It is reflected that by the

end of 2016, the Japanese government is planning to launch over 100 hydrogen

fuelling stations, several of them being partnered with Toyota, which would

increase the sales of this product (JX energy, 2013). While in the case of the USA,

there are already 10 fuelling stations in California and 28 more to come, owing to

government support of over $47 million (Trudell and Jie, 2014).

Competition analysis

While there is competition in front of Toyota' Hydrogen cell vehicle, in the

form of electric vehicles, and hybrid cars, come home their present concern is the

Hyundai Tucson Fuel Cell, which is the hydrogen car launched by the company in

2014. Come 2016; the company has launched their new albeit limited model of

this car while discontinuing the previous in the name of progress (Schaal, 2015).

While the most noticeable difference in both the cars is the sedan shape of

Miris, yet there are several minuscule yet vital differences (Schaal, 2015).

Hyundai' Tuscan has a horsepower of 134, and feet of torque at 221 pounds,

which allows it to hit 60 miles per hour from a standstill in 12.5 seconds and

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reach a speed of 100mph in a few minutes (Schaal, 2015). However, as compared

to Mirai, its total range is 265 miles, and its filling time is10 minutes, as opposed

to 5- 6 minutes of Mirai (Schaal, 2015).

Owing to the limited fuelling infrastructure and relative newness of this

technology, the product (Hyundai Tuscan) is offered in the Southern California

only by lease for 36 months at $499 per month with a signing amount of $2,999

(Schaal, 2015). Fuel and maintenance like in the case of Mirai are included in that

price for the duration (Schaal, 2015).

Presently Tuscan comes at a cost tag of $139,000 (excluding subsidies) in

Korea, as opposed to Toyota's Mirai FCV, which is priced at $62,000 (excluding

grants) in Japan (Schaal, 2015). Owing to the limited infrastructure of hydrogen

fuel in Korea, the Tuscan is facing problems in making its mark on the home

ground, as opposed to Japan, where sales are soaring.

Internal environment analysis

III. Organisation analysis

Nkomo (n.d), notes that Toyota has always practiced an innovative

industry model in all areas of its functioning. The company has strived to grab its

opportunities concerning technological innovation, diversification, research and

development growth, international partnership and expansion, as well as

management of human resources (Nkomo, n.d). Grasman (2012), further notes

that despite the altering industrial cycle, the organization thrives on a model of

internal competency and innovative practice.

In the realms of alternative energy transportation, the last few years has

seen a breakthrough in the automobile industry. The same is reflected in the rise

of electric cars, CNG and LPG commercial vehicles, and hybrid engines (DOE,

2001). In this regard it is noted, "Natural gas and hydrogen infrastructure

development are bringing new players into the marketplace. While conventional

fuel stations have a relatively monolithic set of suppliers and providers, natural

and hydrogen stations are likely to require new stakeholders with new roles"

(AGA, 2014, pg. 16).

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While there are those, who question the relevance of hydrogen based

vehicles in the alternative fuel industry (Seba, 2015). It is reflected that there are

several steps taken to provide development and innovative solutions to the

industry by varied companies. In order to exploit the opportunities posed by the

promise of growth in the alternative fuel industry, Toyota Motor Corporation has

several strengths to capitalise on.

Toyota over the years has been considered synonym to innovation as is

evident in the consumer-centric and diverse product profile by the company

(Grasman, 2012). Apart from its managerial excellence programs like the six

sigma (Nkomo, n.d), Toyota also revels under the competitive edge owing to its

pricing strategy and brand image. Over the years, the company has made a

much-lasting alliance with popular brands like BMW, Nissan amongst others, and

formed associations with dealers and manufacturers to reduce their cost of

production, and enhance technology (Romm, 2013).

It is noted that Toyota Motor Corporation has emerged as a strong brand

in the market. It is also amongst the most profitable automobile brand, among all

its competitors, and has an impressive presence across the globe. The impressive

profits revenues, despite the tragedies like Tsunami, economic recession, and

rapid inflation have been evident of the same (Nkomo, n.d). The same is reflected

through its soaring sales of a Prius-Hybrid vehicle across the world, and the sales

of other Toyota Sedan over the years, as represented in figure 5 and 6.

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Figure 5: Sales of Toyota Camry as compared to other sedans in the US

Source: Cain, (2016)

Figure 6: Sales of Hybrids in the US

Source: Plumer, (2014)

Over the years, Toyota Motor Corporation has followed a practice of

product diversification, which has served to its competitive advantage products

(Romm, 2013). The same is reflected by the sales of over 70 different models of

vehicles under its name (Grasman, 2012). These variations are evident in the

manufacturing process, internal combustion engine, size, shape, price and other

consumer-centric drivers. On the other hand, Grasman (2012), notes that

differentiation is usually in the form of off-road capabilities, vehicles sizes and

shapes and also the levels of luxury.

It will be prudent to presume that Toyota is devoid of its limitation, as is

expected from its rising competition, technological challenges like recalls of over

9 million vehicles for the gas pedal problem (Romm, 2013), and weak presence

in the emerging markets such as China and India (Romm, 2013). It is concluded

that whether in the case of hydrogen based vehicles, alternative fuel industry

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otherwise or other traditional commercial vehicle, there is a need for the

organization to set strategic marketing initiatives across the world to suppress

the weakness.

Nkomo (n/d), further notes that Toyota is perplexed by the often

dwindling prices, new standards and regulations for emission, ever rising prices

of raw materials, and an increase in the competition and natural calamities in

locations like Japan, China, Thailand and Indonesia. It is noted that within the

realms of a hydrogen-based vehicle, the company faces a challenge in economic

backup, technical maintenance in the form of service centres and in covering the

gap between fuelling infrastructures. Even then, there is competition from other

alternative sources of fuel vehicles like electric and hybrid. It is reflected even

though in terms of Hydrogen based car, Toyota is gaining superiority as opposed

to market competition; still there is a need to cover the market gaps, and raise

the popularity of the product not merely at home grounds and California, but in

the rest of the world as well.

SWOT analysis

Strength

Support from government in terms of production, storage, re-filling

stations and security regulations and training in the USA, Japan and most

of Europe

Research and development-driven strategic plan with clear technical

targets

Economic backing for hydrogen sourced products

Already introduced limited numbers of Toyota Mirai FCEV for testing

grounds

Sharing patents and production with competitor, thus reducing economic

pressure

Clear commitment to hydrogen technology and economy

Targeting smaller niche audience and market, to establish the footing for

acceptance of new technology.

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Weakness

Need to focus on a better mode of production of hydrogen, as opposed to

traditional ways of hydrolysis using combustible methods (Seba, 2015).

Need to cover the gap in the transition phase

Competition from electric and hybrid cars

Aversion of consumers to hydrogen owing to security concerns

Infrastructure challenges for refuelling

Competition with companies likes Hyundai and Honda

Opportunity

Decentralization of hydrogen production

Association of Toyota with leading refuelling companies

Toyota acknowledged as pioneer for innovation

Growing concerns for fuel scarcity and environmental challenges

Need for improved efficiency and better output from alternate energy

vehicles

Threat

Market competition

Consumer preference towards low price car, as opposed to environmental

impact

Increasing standardization and regulations

Rising raw material cost (as in case of combustible material for creation of

hydrogen)

Economic burden and increasing exchange rate paradigm

Concerns regarding consumer safety in many countries for re-filling and

use of hydrogen-based vehicle

Need for awareness and training programs for audience, relating to the

usage of such vehicle

IV. Marketing Objectives and Strategies

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Goals and SMART Objectives

Objectives for branding

To make Toyota brand for hydrogen-based vehicles the anticipated top

model known globally by September 2016;

Promotional objectives

To increase awareness in environmental challenges for natural resource

depletion, encouraging shifts to renewable sources in the Western

countries by July 2016;

Objectives for Growth:

To use home ground (Japan) government funding to set up 100 hydrogen

fuelling stations crucially by the end of 2016;

To increase trend on fuelling stations in coastal U.S. cities of over 3,000 by

end of 2017;

Since their inception, Toyota has focused on providing vehicles, which are

sustainable and reliable, and are focused on the development of society. Centred

on innovation, Toyota Motor Corporation or TMC, the vision of the company is

directed towards respecting the planet, and providing high-quality, innovative

products, that exceeds consumer expectations. The mission of the company is to

seek high-valued customers who have satisfied ownership experience.

Over the years, Toyota has dedicated itself towards the alternative fuel

energy research and development; same is reflected through their innovation in

Toyota Prius and now Toyota Mirai. Owing to the lack of the hydrogen filling

station. Initially, the company planned to sell only 200 Mirai in California by the

end of 2015 (due to their 12 fuelling stations). However, with the passage of

time, and government collaboration, it is expected that the trends would go to

over 3,000 in coastal U.S. cities by the end of 2017 (Trudell and Jie, 2014).

It is noted that at the home ground, the number of fuelling stations will

increase, as the government of Japan sees promise in the hydrogen industry. In

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addition, many of these measures are supported by the organisation itself, in the

form of investor associations and collaborations (Jx energy, 2013). Since the

sales of the product are directly related to the attainment of government funding

and setting up of the said 100 hydrogen refuelling stations in Japan by the end of

2016, it becomes an important objective for the company.

The next challenge in front of the group is to establish a more global

presence for the product, as opposed to only the western coast of the US. Thus,

there is a need to form an alliance, with the government of the USA, and

European nations to set up fuelling stations, to further introduce these products

in their market. However, presently, amidst the current investment of $7.2

million in a California start-up, Toyota has to stay and note if the government

stays true to its promise of 28 new stations selling hydrogen for fuel-cell cars,

and subsequent increase in the sales of the vehicle.

It cannot be avoided that while, Toyota is leading the hydrogen fuel cell

industry presently, from Korean competition like Hyundai and Honda, and it still

has competition (Schall, 2015). Furthermore, it is evident that Hyundai is ready

to splash its prices, to gain the marketing edge. In the wake of such trends, the

company needs to strengthen its profile and establish a stronger presence.

Marketing strategies

Target market and positioning strategy

Toyota Mirai has won the 2016 World Green Car of the Year Award and

has been since then widely anticipated in the alternative fuel structure. Even in

its initial presence during 2014, it created good reviews, and the orders for the

vehicles soared within Japan. So far, Toyota has released a series of video

commercials for the Mirai by showing their hydrogen to power fuel cells

technology. Fortunately, this marketing plan was supported by the release of

Back to the Future Part II, which exhibited that Hydrogen is the fuel of choice for

future.

Typically Toyota products are sold year long and are selected for their

pricing, innovative designs, and reliability. Over the years, the company has

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invested heavily in terms of research and development, reaching the niche

audience and extending their technology to enhance the safety of their products.

Besides, the company has a green policy, and is dedicated to creating a

sustainable planet, and hence it is seen as a source of optimum products in the

alternate fuel range.

In the case of Myria, Toyota has succeeded to handle the hurdle of

consumer safety as represented by Nageshwaran (n.d) and has made attempts

like steering collapsible columns and other impact based measures. The products

are targeted at an audience who are looking for options with alternative fuel, yet

do not want to compromise on speed and efficiency. Also, there is a need within

such consumer to make the most environmentally friendly choice.

Marketing mix

Product & pricing – So far concerning product and pricing strategy,

Toyota has gained an edge over the competitors, as is exhibited in the section of

competition analysis. Considering product location, the company has primarily

focused on gaining popularity on home ground and California, mainly owing to

their government' contribution to the fuelling needs of the vehicle.

Place & process – However, it is also acknowledged that with an entry in

California, which is seen as a greenest city in the USA, Toyota has established a

prominence for itself. Further the company' plan to extend their demographic

profile to Europe especially in Germany and Denmark, are reflective of this

perception. Hence, there is no need to counter the location mix of the marketing;

however, there is a need to infiltrate markets like China and India over time,

owing to their emerging state.

Promotion – Considering the promotion strategy, the company has

managed to establish an effective marketing plan so far, where it has an active

digital presence and advertising campaign. In addition, the product has been a

part of several car launches over the year and has been deemed as a highly

anticipated product in many markets.

Physical presence & people – Still it is reflected that a large number of

audience are apprehensive about the safety limitations of a typical hydrogen

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vehicle. It is reflected even though Toyota has managed to conquer those odds;

there is a need to advertise the same, through the means of limited number lease

models in other emerging markets, to increase the market presence for the

product.

V. Marketing plan implementation

Toyota needs to enter emerging markets like Europe and Asia. While it is

entering European nations by the end of 2017, there is a need to

penetrate the Asian market as well, possibly by the end of 2020.

There is a need to further extend their presence in the USA, possibly by

the end of 2020. For this they need to form an alliance with regional

partner and seek government support. However, part of the success is

based on success of the product in California.

There is a need for the organization to establish a non-combustible means

of hydrolysis for the production of hydrogen. This will help in establishing

the presence of the vehicle as a renewable source of energy. Use of the

wind, turbine and solar energy is suggested for the research and

development department.

The company needs a stronger marketing mix to counter the odds of

competitions like Hyundai, through smarter partnerships like BMW and

Nissan, to further lower the cost of production, and allot resources for the

development of fuelling stations, possibly by the end of 2022.

There is a need to focus on the in-house production of the vehicle, as

Japan is a promising market for the product, and a home ground for

change. There is a need to further strengthen the alliance at home turf.

There is a need to manage human resources since their success and

contribution is vital for the success of this endeavour. In this regard

Toyota has to overcome its leadership hassles and focus on diversification

and creating a culture of excellence.

VI. Evaluation and control

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So far it is noted that Toyota has taken active measures before launching

their product to the market. They seem to have a unique product profile,

optimum security measures, effective pricing strategies and brand associations.

In addition, the products are associated with countries, which are considered

breakthrough markets, and are known to be highly focused on environmental

understanding of the consumers (Energy, 2015). Through the measures taken by

Hyundai, it is evident that the product by Toyota has a better shot in the

alternate fuel market. However, this still does not mean that the consumer

preference is blatantly shifted towards hydrogen as opposed to more popular

electric and hybrid options.

To succeed, in their marketing plan there is a need for stoic leadership. It is

one thing to have aim, but another to ensure that the targets are met at time;

hence the company would need to keep a close eye on the marketing mix. The

same can be attained by relating quantitative and qualitative metrics to the

marketing strategy. For this purpose, this marketing study will rely on revenues

obtained from sales leads obtained, customer's value and measurement of

products sold over a period of time. It is believed that the use of these marketing

measures would provide a strategic edge to the company and product profile.

Control is an important part of this product initiative as well, owing to the

high amount of infrastructure and cost involved. In the case of hydrogen-based

vehicles there is a need to manage the fuelling station needs, and for the fuelling

station needs there is a need to sell the desired products. Since Toyota is already

associated with such significant investments, there is a need to consider the

parameters of investment through the means of assessing frequently the

marketing budgets and market share. It is believed that the use of these

measures will allow the organization a chance to assess their output needs, and a

system of checks and balance.

Reference

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