TOYOTA’S MARKETING & CRM STRATEGY
Toyota might have gotten its start into the auto making by being a fast follower, however it is now the innovator. In 1936, Toyota accepted following Chrysler’s landmark Airflow and patterning its engine after the 1933 Chevrolet engine. But by 2000, when it innovate the first hybrid electric-gasoline car, the Prius, Toyota was the leader. In 2002, when the second-generation Prius hit showrooms, dealers acquired 10,000 orders before the car was even accessible; GM followed with an announcement that it would enter the hybrid market with models of its own.
Toyota’s strategy for Prius was to build the environmentally friendly car which reduced the footprint on the environment by reducing energy consumption, greenhouse gas emission rates, and smog emission rates. Toyota president Fujio Cho sees environmental performance as essential to future of cars.
Toyota offers a full line of cars for U.S. market, from family sedans to sport utility vehicles to trucks to minivans. Toyota also has products for various price points, from lower-cost Scions to mid-priced Camrys to the luxury Lexis. Designing these dissimilar products means listening to dissimilar customers, building the cars they want, and then crafting the marketing to reinforce each make’s image. For illustration, Toyota spent four years carefully listening to teens before launching the Scion for first-time car buyers. It learned, for instance, that Scion’s target age group of 16-to-21 year olds wanted personalization. To meet that preference, Toyota will make the car mono-spec at the factory and let customers at dealerships choose from over 40 customization elements, from stereo components to wheels and even floor mats.
Toyota markets the Scion at music events and will have showrooms where ‘young people feel comfortable hanging out and not the place where they just go stare at a car,” said Scion vice president Jim Letz.
Question 1
Toyota’s sales rose in every region of the world in 2003, and the company earned $146 billion. It edged past Ford Motor Co., to become the world’s second-largest carmaker, and its market cap of $110 billion is more than that of GM, Ford, and DaimlerChrysler combined.
Toyota is now eyeing the top spot, with a goal of surpassing GM as the world’s largest carmaker by 2014.
Task1. Define
i) Total Customer Value
ii) Customer Satisfaction
iii) Customer Relationship Management.
Task2. Explain how Toyota can make use of information technology to develop and handle customer relations.
Task3. Explain the significance for Toyota to respect the privacy of its customer information.
Task4. Explain how Toyota can measure the success of its customer centred initiatives.