Marketing Design and Innovation 2015

Corolla
Study into Design, Innovation, and Brand Appeal

Table of Content

Marketing Design and Innovation

Task 1.............................................................................................................................1
1. Introduction.................................................................................................................1
1.1

Context and Overview of the Company............................................................1

1.2

Problem Statement...........................................................................................2

1.3

Objectives of the Study.....................................................................................2

2. Corollas Benefits & Value Derived by the Customers...............................................2

2.1

Product Description Corolla...........................................................................2

2.2

Customer Perception........................................................................................3

2.3

Product and Service Value................................................................................4

3. Corollas Uniqueness in Design Elements.................................................................4

3.1

Design, Colour, and Shape...............................................................................4

3.2

Benefits and Utility for Customers.....................................................................5

3.3

Evolution of Design...........................................................................................6

4. Brand appeal in Relation to the Competitors.............................................................6

4.1

Corollas Brand Appeal.....................................................................................6

4.2

Comparison with the Competitors.....................................................................7

4.3

Competitive Advantage.....................................................................................7

5. Conclusion..................................................................................................................8
References.........................................................................................................................9
Task 2: Reflective Essay...............................................................................................11
Introduction................................................................................................................11
Innovation..................................................................................................................11
Learning....................................................................................................................12
Perception.................................................................................................................12

Marketing Design and Innovation

Conclusion................................................................................................................13

Marketing Design and Innovation

Task 1
1. Introduction
1.1

Context and Overview of the Company

Marketing trends and strategies are increasingly defined by product innovation

and design. Product design has been ignored as a key component of marketing
strategies, but it has now become a critical success factor for many firms who stand out
from others, even in times of crisis, owing to their distinction in design and differentiation
in marketing, firms like Apple for instance. Design is the form characteristics of a
product that provides any kind of benefit to its users. (Bloch, 2011, p. 378).
Organizations now respond to these changing trends by investing in design and
innovation and marketing these aspects of their products (European Union, 2014).
Toyota is a multinational automotive corporation engaged in the production and
sales of vehicles. Headquartered in Toyota, Aichi, Japan, the company was founded in
1937 by Kiichiro Toyoda and employs around 340,000 people. Apart from the
automotive business, Toyota Motor Corporation also provides financial services, design
and sale of houses, biotechnology, robotics, and a number of diversified business
activities. The company is a host of around 600 subsidiaries, including the well-known
automotive companies like Lexus, Scion, Diahatsu, and Hino. Toyota has its production
facilities in a number of countries and exports its products to over 140 countries around
the world (Toyota Global, 2015). The Toyota Corolla is one of the compact and
subcompact category of cars manufactured by Toyota. First introduced in 1966, Corolla
has been one of the best selling and well-known cars worldwide, and has gone through
various redesigns in its long lineage. The chosen product for this study is the 2016
Toyota Corolla. The key rivals of the Corolla series are the Honda Civic and Nissan
Sunny models. Toyota reported an operating income of 2,750bn Yens in 2015 (Financial
Highlights, 2015).

Marketing Design and Innovation

1.2

Problem Statement
The object of this study is to understand the evolution of design in the Toyota

Corolla with respect to the changing needs of its market. For this purpose, the
investigation seeks to highlight what changes in design and innovation are made over
the time, how these changes were received by the customers, and how it enabled the
product to compete with its competitors.

1.3

Objectives of the Study

The following objectives are proposed for this study:

To assess the value and benefits derived by the customers from Toyota Corolla
To investigate the uniqueness of Toyota Corolla in term of design and innovation
To examine the brand appeal of Toyota Corolla in relation to other competitors.

2. Corollas Benefits & Value Derived by the Customers

2.1

Product Description Corolla

A product is an offering that satisfies a need or want. The current model of

Corolla (2015-16) addresses the various needs of the consumers and provides new
design solutions, innovation and efficiency. Apart from the mainstream features like LED
lights, power mirrors, automatic transmission, 6-way adjustable seat, the new Corolla
provides full multimedia and audio compatibility through CD, USB, Bluetooth, wireless,
and other technologies, audio, Bluetooth, and hands free controls on steering, 12V
power outlet, cup holders, back camera, climate control features, centre console for
storage, rear spoiler, remote keyless entry, integrated camera, button start, ECO drive
mode, advanced safety controls, and a host of other features (Toyota Corolla, 2015).
The product presents a unique and elegant design with plenty of stylistic features and
internal controls, coupled with advanced technology, easy accessibility and navigation.
The new 11th generation Corolla particularly targets Millennials and middle-aged groups
of people with a seamless match of a car with other essential features like phone and
music, wireless connectivity and integrated navigation.

Marketing Design and Innovation

Source: A Brief History of The Toyota Corolla (Be Forward, 2015)

2.2

Customer Perception
The success of Corolla can be attributed to Toyotas approach of customer-

oriented thinking about its products. A successful family car must satisfy the customers
in comfort, feel, and performance, as expressed by one of the chief engineers involved
in the development of Corolla (Be Forward, 2015). The Kaizen philosophy of continuous
improvement informs the design and innovation at Toyota, which helps them stay
current and conscious of the prevailing trends, expectations, and demands of
consumers.
Moreover, consumers top-rated the brand in its fuel economy, perceived quality,
and value in comparison to brands like Ford, Tesla, Mercedes, Sabaru, Honda, and
others (Yahoo Autos, 2014). The report expressed that consumers are driven by
perception, which is influenced by marketing, experience, media, and word of mouth.
Around 70% of consumers rate design and style as the decisive factor in their buying
decisions, 68% side with technology and innovation, while the top rated aspects are
quality (90%), safety (88%), and performance (83%). Value and fuel economy closely
follows at 82% and 81%, respectively (Brindusescu, 2014).

Marketing Design and Innovation

2.3

Product and Service Value

The core competency of Toyota has been its reliable quality, product benefits

with attractive prices compared with the competitors, which maximizes the value for the
customer and puts the brand in a preferred zone.
With competency in quality and reliability, Corolla has been able to attract higher
perceived value which provides the firm leverage on prices against the rivals because
its consumers value it more than others. When Toyota and General Motors produced an
identical car in a venture, the one with the Corolla nameplate sold for $1000 higher than
the one with GM nameplate because of the higher perceived value of Toyota. Many
customers even claimed superior quality in Corolla even though it was identical with GM
(Keegan and Bhargava, 2011, p. 174).
While Toyota has other luxury brands that focus on quality in exchange of
premium prices, such as Lexus, Corolla enjoys a unique position with its excellent mix
of reliability, design and innovation, and features with a comparatively lower price with
respect to both competitors and its other premium brands. Once again, perceived value
and quality of the company puts Corolla in a favourable position (Hill and Jones, 2011,
p. 88). It perfectly addresses the consumer needs for a comfortable, reliable,
technologically advanced, safe, and fuel efficient family car in an affordable and
reasonable price. The prominent benefits which the evolution of Corolla now offers to
the customers includes latest car technologies, especially, the multimedia, connectivity,
and phone features, along with increased safety systems, eco-friendly design, and
enhanced automation and fuel efficiency.

3. Corollas Uniqueness in Design Elements

3.1

Design, Colour, and Shape

The evolution of Corolla since its inception to its current model shows a transition

in design from simpler to stylistic shape and form The new 2016 Corolla presents a
compact, elegant, and aerodynamic design, which is at once stylish and simple. With a
well-designed curved architecture the exterior of the car projects an outlook of a luxury
sedan, which is totally complimented by its stylish and spacious interior with a great

Marketing Design and Innovation

deal of flexibility. The car retains its aerodynamic style and smooth lines of the exterior
with a fluid and simple dashboard, which is crafted to host cutting-edge technology,
including, among other features, the GPS, wireless connectivity, multimedia and
applications interface, music and call functions. This exterior also improves efficiency
and performance in terms of fuel consumption and mileage. The design also
incorporates 8 airbags to improve and ensure safety. Toyota is also engaged in reducing
its carbon footprint and utilizing the recycled material in its production. These innovative
features of the design improved the environmental efficiency of Corolla.

Source: 2016 Corolla (Toyota Corolla, 2015)

3.2

Benefits and Utility for Customers

The new Corolla is available in 10 colours with different models to suit the needs

of different customers, models like sports, Eco plus, base and premium LE. It also
comes with certain internal customization features. Its internal space allows many
adjustments to make room for more cargo and to accommodate more people. The rear
seats of 2016 Corolla can be completely folded down to make room for a lifestyle.
Likewise, theres a storage compartment for the front seats, which can be adjusted in 46 different ways. The automated climate control system maintains the internal
environment and variable transmission aids the driver in stop and go traffic.

Marketing Design and Innovation

The design of the car enables a good degree of adjustments and flexibility. The
shape of its interior also reflects a pleasant view, with efficient ergonomics and design
optimization facilitating accessibility and navigation of controls. Features like music and
multimedia integration through USB, CD, FM, and Bluetooth are useful features which
are required by many customers. Moreover, access to maps and applications also
facilitate the driving experience, with options like making online and mobile reservations,
restaurant orders, and making phone calls to people are also one of the commonly used
features which customers now require on the move and within their cars. Backup
camera and voice recognition are also some of the helpful aids, enhancing the driving
experience (2016 Corolla, 2015).

3.3

Evolution of Design
The transformation in Corollas design reflects the changing consumer perception

of style, which is moulded by social and cultural trends and a gradual need for
transformation. Observing the local companies and culture, Toyota engaged in a
number of innovations in its design, body style, and integrated technologically advanced
systems and features in its cars to make its products contemporary or, better, future
(always staying ahead of the times). Such an approach was an apt identification and
fulfilment of a consumer need (Toyota Blog, 2013). This evolutionary trend continued to
respond to the market trends and consumer needs to for Corolla to stay ahead of its
rivals.

4. Brand appeal in Relation to the Competitors

4.1

Corollas Brand Appeal

With respect to consumer perception and brand appeal, as discussed earlier, the

Corolla is strongly associated with reliability, quality, and perceived value. The case of
Corolla and GM illustrated that earlier and it is also supported by consumer choice
survey, and other studies (Keegan and Bhargava, 2011, p. 174; Hill and Jones, 2011, p.
88; Brindusescu, 2014). Corolla is distinguished for its design and innovation, comfort,
reliability, and value. Its brand appeal with respect to perceived quality, fuel efficiency,

Marketing Design and Innovation

and value is strongest compared with the rivals like Ford, Honda, Sabaru, and Chevrolet
(Yahoo Autos, 2013). Moreover, the Corolla enjoys a favourable consumer perception
with connects its reliability with a reasonable price. Hence, a sense of luxury, elegance,
comfort, and quality comes at a lower price compared to the competition. This makes
for a powerful combination that drives the sales and the overall brand value of Corolla
(Hill and Jones, 2011, p. 88).

4.2

Comparison with the Competitors

In terms of innovation and design, the Corolla has improved much over the years

and stands in strong rivalry with its competitors, including even some premium luxury
brands with its exotic outlook. In comparison with Mazda3 GS sedan, Corolla provides
greater interior space and is more fuel efficient. Moreover, the Mazda does not offer the
automatic climate control and the automatic transmission control (CVTi-S technology)
(McAleer, 2013). The comparative models of Ford, Chevrolet, and Honda provide
marginally greater horsepower, but it does not make a practical difference in terms of
performance. Furthermore, among these rivals, CVT is only built-in in the Corolla, which
provides better efficiency and driving control (Ford Fleet, 2015). With respect to price,
the comparison between Corolla and Honda Civic shows that the former is over a $1000
cheaper. The Corolla is more spacious, comfortable, and provides value for money
while the Honda is a little smoother in drive and less noisy (The Car Connection, 2015).
Compared to Hyundai Elantra, the new Corolla is quieter, spacious, and fuel efficient
while the Elantra may be more exotic and stylish (Halvorson, 2015). Hence, consumers
get the value for money in Corolla and a lot of useful features, better interior space and
mileage, making it the preferred family car or even a luxury sedan.

4.3

Competitive Advantage
The key advantages the Corolla brand has secured for Toyota over its rivals is

the strong brand appeal and perception in terms of quality and affordability. It has led to
an increase in the perceived value of the brand and has created a positive image of the
brand as well as the company. This impact is deep because the Corolla is probably the

Marketing Design and Innovation

most popular and one of the best selling cars of any automotive companies in its own
category. Hence, the Corolla represents Toyota as such and adds to the overall value of
the company. Corolla represents a striking evolution of innovation and design, which are
the key forces that have kept Toyota ahead of its competition and appealing to diverse
global markets. The new Corolla has likewise maintained the companys reputation for
design and innovation, quality and value. With the use of recyclable material and
efficient design and processes, the new Corolla is able to live up to the expectations
without compromising on quality and prices. Hence, Toyota has acquired and huge
customer base with this strategy and has earned customer loyalty by understanding and
meeting their requirements. Toyota now enjoys market leadership in many regions and
has a sustainable brand name (Nkomo, 2012). The brand value and success of the
Corolla has in turn increased the perceived value of other brands of Toyota as well.

5. Conclusion
The 2016 Corolla, or Corolla in general, projects an improvement in design and
innovation with an effective integration of consumer needs and wants. Although the car
is surrounded by its rivals with comparable and challenging features and design, the
Corollas brand appeal, customer orientation, cost leadership, reliability, and overall
value provide it an edge over the competition. Living up to the expectations and
adapting to the new technologies has enabled the Corolla to stay ahead of time, and it
continues to be its ground of distinction and differentiation. The recent focus on fuel
efficient and eco-friendly production processes and car performance has also improved
the position of Toyota in the market in terms of cost reduction, brand perception, and
sustainability. Moreover, a potential remains to be tapped in the emerging markets
where the presence of the Corolla is minimal or non-existent. The company could utilize
its process efficiency and cost leadership strategy in the developing countries where it
does not currently operate. Finally, the Corolla has secured a strong brand image for
Toyota and has lived up to consumer expectations over the years to become one of the
most popular and best selling sedans. It has done so primarily with continuous
innovation in design and efficiency, which led its superior quality and value for the
customers.

Marketing Design and Innovation

References
2016 Corolla, (2015) Elevate your drive. Toyota [online]. Available from:
http://www.toyota.com/corolla/#!/features/efficiency/cvti-s-valvematic-technology
[Accessed 13th November 2015].
Be Forward, (2015) A Brief History of The Toyota Corolla. [Online] Available from:
http://blog.beforward.jp/car-review/history-toyota-corolla.html [Accessed 13th
November 2015].
Bloch, P. H. (2011) Product design and marketing: reflections after fifteen years. Journal
of Product Innovation Management, 28(3), pp. 378-380.
Brindusescu, G. (2014) Toyota Dominates Consumer Reports 2014 Car-Brand
Perception Survey. Auto Evolution [online]. Available from:
http://www.autoevolution.com/news/toyota-dominates-consumer-reports-2014car-brand-perception-survey-76305.html [Accessed 13th November 2015].
European Union, (2014) Design for innovation, smart living and innovative business
models; how to scale-up success? Business Innovation Observatory [online].
Available from: http://ec.europa.eu/growth/industry/innovation/businessinnovation-observatory/files/trend-reports/02-design-for-innovation-smart-livingand-innovative-business-models_en.pdf [Accessed 13th November 2015].
Financial Highlights, (2015) Financial Highlights. [Online] Available from:
http://www.toyota-global.com/investors/financial_data/high-light.html [Accessed
13th November 2015].
Ford Fleet, (2015) 15 Competitive Comparison Guide. Ford [online]. Available from:
http://www.fleet.ford.com/resources/ford/general/pdf/brochures/2015/15_competit
ive_comparison_lr[1].pdf [Accessed 13th November 2015].
Halvorson, B. (2015) Toyota Corolla Vs. Hyundai Elantra: Compare Cars. The Car
Connection [online]. Available from:
http://www.thecarconnection.com/news/1075169_toyota-corolla-vs-hyundaielantra-compare-cars [Accessed 13th November 2015].
Hill, C. W. L., and Jones, G. R. (2011) Essentials of Strategic Management. Cengage
Learning, South-Western.

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Keegan, W. J., and Bhargava, N. K. (2011) Global Marketing Management. Pearson.

Lojacono, G., and Zaccai, G. (2012) The evolution of the design-inspired enterprise.
MIT Sloan management review, 45(3). Available from:
http://sloanreview.mit.edu/article/the-evolution-of-the-designinspired-enterprise/
[Accessed 13th November 2015].
McAleer, B. (2013) Comparison Test: 2014 Mazda3 vs 2014 Toyota Corolla. [Online]
Available from:
http://www.automondial.ca/IntranetUpgrade/Product_Reviews/Mazda/comparison
_test.pdf [Accessed 13th November 2015].
Nkomo, T. (2012) Strategy - Analysis of Toyota Motor Corporation. [Online] Available
from: http://scholar.harvard.edu/files/tnkomo/files/analysis_of_toyota.pdf
[Accessed 13th November 2015].
The Car Connection, (2015) Compare 2015 Honda Civic vs 2015 Toyota Corolla.
[Online] Available from: http://www.thecarconnection.com/car-compareresults/honda_civic-sdn_2015-vs-toyota_corolla_2015 [Accessed 13th November
2015].
Toyota Blog, (2013) Toyota Corolla: Foundations of a world-beater. [Online] Available
from: http://blog.toyota.co.uk/toyota-corolla-foundations-of-a-world-beater
[Accessed 13th November 2015].
Toyota Corolla, (2015) Corolla 2016. [Online] Available from:
http://www.toyota.com/corolla/ebrochure/ [Accessed 13th November 2015].
Toyota Global, (2015) Overview. [Online] Available from: http://www.toyotaglobal.com/company/profile/overview/ [Accessed 13th November 2015].
Toyota, (2015) Vehicle Heritage. Toyota [online]. Available from: http://www.toyotaglobal.com/showroom/vehicle_heritage/corolla/ [Accessed 13th November 2015].
Yahoo Autos, (2013) Consumer Reports' brand perception survey. Yahoo [online].
Available from: https://ca.autos.yahoo.com/photos/consumer-reports-brandperception-survey-1391573191-slideshow/2014-toyota-corolla-photo1377624203613.html [Accessed 13th November 2015].

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Task 2: Reflective Essay

Introduction
The following task is dealing with the learning I have had while going through the
Marketing Design and Innovation module. It is about the experiences and difficulties I
have encountered during the completion of module. Furthermore, it explains the
improvement in my problem solving and analytical skills I have achieved after
researching and writing on the assignment. The course name made me go through the
challenge of taking this assignment where innovation has always come to my mind as
an intriguing act. Manufacturing was not my area of interest but studying the theories
and applications of innovation and marketing was an entirely different experience to
relate a products attributes. My knowledge about the worlds leading manufacturers
Toyota Carolla has increased and the problems I went through while researching about
the brand, I get to know the innovative ideas they evaluated to meet customers needs.

Innovation
The most important aspect of innovation I learnt from this module is that the customer
requirements keep changing with the time. This has been the biggest challenge the
brand has to deal with customer satisfaction as its motive. The changes in every new
model of the brand describe the needs customers look for when it comes to marketing,
innovation and product design. Apart from the design, the successive implementation of
technology for the feasibility of its customers, the brand seems to be exceling at what is
achievable. I learnt the trends and developments in course of innovation and marketing
successfully.
The proposition of additional innovation fell upon me when I figured the design is to
incorporate the product as a family car. The design uniqueness is developed to satisfy
not any targeted audience, it is to satisfy the requirements of every customer who

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12

inquires for the comfort, feel and a low budget vehicle. The design is structured to fulfill
the general customer requirement. The blending of these three elements altogether has
invented the product design which is easily purchasable for every customer. Earlier, the
blending of such innovation the product market and pricing was almost impossible for
me to achieve at the same time but now after the research study, I learned a lot of
things about innovation and its simultaneous approach of marketing.

Learning
From the word marketing I have always considered commercialization of products, but
nonetheless when I lend myself onto this assignment now know the importance of
marketing, its strategies and their implementation to successful design in terms of
product innovation and design. After the module, the patent ideas and product design
are highly relevant with each other. The brand has to blend in the ideas with the design
for a successful implementation where customer satisfaction is an obligation as well.
Studying the ideas evaluating the brand is now easier from my analytical skills as they
have improved now because I can relate the theoretical underpinning to practical
implementation for design.
Thinking about marketing and innovation simultaneously might kill the essence but the
brand has kept to the code. The ideas are manifested in the design. From customers
point of view, innovation is mostly related to the marketing design whereas for those
who are designing these strategies and designs have an impulsive background that
they come up with. The marketing and design module, if addressed through successful
integration, can act as biggest asset to compete in the market.

Perception
The models, theories and principle applied in this task have increased my knowledge
about marketing strategies and innovative product ideas. The surprising aspect in my
learning was the relevance of theory to the practice. I have never considered that the

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innovation in products is embedded in any of the theories of marketing, innovation or

customer demand. The relevance was somehow a change in my perception as now I
can easily understand. The firms do not just work on the practical implications of a
product but also work for the ground theories. The increase in knowledge broadened my
horizon and gave me an insightful thought process of how multinational organizations
work to achieve a triumphant.
Nonetheless, I have enjoyed my journey throughout the course where apart from the
difficulties; I have learnt so much and attained a next level of growth. The only thing I
would like our course guiders to consider is to let the students have a practical
implementation of the theories and models we study, the relevance would be easier and
the learning would be huge.

Conclusion
From the very beginning, I had the vision that this course might be teaching me a lot
and increase my learning which it did even a lot. First, my changed perception, learning
and the challenges I faced in studying, reading and researching this particular
assignment are evident but the module invigorated a definite curiosity in me, I can
gladly say that after this module I am going to take a few more courses further as this
more has developed an interest for Innovation and Marketing design.
Assembling all what I have learnt in this assignment, the change in innovation is due to
the orderly changes in customer demands; the growing needs of customers are truly
increasing the level of innovation in products. To study the product, one has to go
through the depth of its innovative structure and study the evaluative change in product
design. The changes are made as the customer demands keep changing time to time.
My learning was mostly related to the product design and its evaluation, customer
demands and incorporation of technology for customer satisfaction. The evolution of
human anatomy of being comfort centric to the implementation of design intervention
where the color, interior, body, feel and comfort should be according to the customer

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requirements. This design-centric study has its strong roots in theory and this revealed
that even the most attractive products are designed on basis of theoretical models.