INTERNATIONAL BUSINESS

TOYOTA MOTOR CORPORATION

ARRANGED BY :

PUTERI MEIDYA QATRUNADA

180809377

DIV AIR TRANSPORTATION MANAGEMENT

COLLEGE OF AEROSPACE TECHNOLOGY
YOGYAKARTA 2018/2019
 FOREWORD

Assalamualaikum. Wr. Wb.

First at all, give thanks for God’s love and grace for us. Thanks to Allah SWT for
helping me and give me chance to finish this assighment timely. And I would like to
say thank you to Ms. Esti Nur Wakhidah. S.Pd. M.M as the lecturer that always
teaches us and give much knowledge about International Business Programme.

This assighment is the Last Exam that composed of Toyota’s Corporation

Analysis. As a student I realized this paper is not perfect. But I hope it can be useful
for us. Critics and suggestion is needed here to make this assighment be better.

Hopefully we as a student in “College of Aerospace Technology” can work more

professional about International Business Programme.

Thank you.

Wassalamualaikum. Wr. Wb.

Yogyakarta, November 17, 2019

Puteri Meidya Qatrunada

 TABLE OF CONTENT

FOREWORD
TABLE OF CONTENT
CHAPTER I............................................................................................................1

A. Profile.................................................................................................................6

CHAPTER II.........................................................................................................13

A. Enviroment’s Power.........................................................................................13

CHAPTER III........................................................................................................18

A. Kind of Trade & Investment, Company Barriers.............................................18

CHAPTER IV.......................................................................................................22

A. International Strategy Management.................................................................22

CHAPTER V.........................................................................................................32

A. Market Analyis.................................................................................................32
B. Alliance of Toyota............................................................................................43

CHAPTER VI.......................................................................................................51
A. Advantages of Ownership...................................................................................51
B. Toyota Used PCN Strategy Managerial..............................................................54
C. Toyota Used Hybrid Strategies Planning............................................................55

CHAPTER VII......................................................................................................57

A. Marketing Mix’s Toyota.....................................................................................57

B. Financial Highlight.............................................................................................61
C. Financial’s Comparison between Domestic & International..............................65
D. CSR of Toyota....................................................................................................66

REFERENCES......................................................................................................71
 TOYOTA

-Be mindful of what must not change-

CHAPTER I
 A. PROFILE

1. President

Akio Toyoda
Akio Toyoda's thoughts on surviving a period of profound transformation,
creating the mobility society of the future, building new partnerships, and
Toyota's commitment to contributing to society through automobiles and
wide-ranging services.
a. Mobility for All
b. Our Real-world Track Record and Virtual-world Potential
c. Uniting the Toyota Group to Take on the Future
d. Creating the Mobility Society of the Future

2. Vision & Philosophy

Striving to create outstanding Earth-friendly products for sustainable

growth, Toyota respects the laws, customs, and cultures of all countries and
regions, rooted in its home-grown "Toyota Production System" (TPS).

a. Guiding Principles at Toyota

Toyota's unique management philosophies, values, and methods.

b. Toyota Code of Conduct

 Core values adopted by people working at Toyota, focusing on specific
principles for employees to take to heart.

c. Toyota Global Vision

A closer look at who we are, our roots, and the kind of company we aspire
to be.

d. Toyota Production System

This all-encompassing production system is at the very heart of Toyota's

corporate philosophy and is characterized by continuous improvement.

3. History

Starting with the hope of contributing to society through manufacturing,

Kiichiro Toyoda established an Automotive Department within Toyoda
Automatic Loom Works, Ltd. in 1933.Since then, with an ear to the needs of
the times, we have resolutely tackled various issues, transcending our
imagination and capability to make cars imbued with love around the
world.The accumulation of everyone’s hopes and skills has created today’s
Toyota.The concept of “making ever-better cars” is the Toyota spirit as it was
and always will be.We’ll take a closer look at Toyota’s car making.
 4. Profile

a. Company name  Toyota Motor Corporation

b. President and Representative Director  Akio Toyoda

c. Date founded  August 28, 1937

d. Capital  635 billion yen (as of March 31, 2016)

e. Shareholders  Shareholder composition

f. Main business activities  Motor vehicle production and sales

Number of employees (consolidated)  369,124 (as of March 31, 2018)

5. Related Links
6. Financial Highlight
 CHAPTER II

A. ENVIROMENT’S POWER

1. TOYOTA CORPORATE OVERVIEW:

Founded in 1937, Toyota Motor Corporation is a Japanese company

that engages in the design, manufacture, assembly, and sale of passenger
cars, minivans, commercial vehicles, and related parts and accessories
primarily in Japan, North America, Europe, and Asia. Current brands
include Toyota, Lexus, Daihatsu and Hino. Toyota Motor Corporation is
the leading auto manufacturer and the eighth largest company in the
world. As of March 31, 2013, Toyota Motor Corporation’s annual revenue
was $213 billion and it employed 333,498 people.

2. EXTERNAL ENVIROMENT OF AUTOMOTIVE INDUSTRY:

a. Industry Overview and Analysis

Toyota Motor Corporation competes in the automotive industry. The

past five years were tumultuous for automobile manufacturers.
Skyrocketing fuel prices and growing environmental concerns have
shifted consumers' preferences away from fuel-guzzling pickup trucks to
smaller, more fuel-efficient cars. Some automakers embraced the change
by expanding their small-car portfolios and diversifying into the
production of hybrid electric motor vehicles. Other automakers were more
reluctant to shift their focus from big to small cars, expecting the price of
fuel to contract eventually, bringing consumers back to the big-car fold.
When fuel prices did fall during the second half of 2008, it was due to the
US financial crisis ripping through the global economy. This had a
domino effect throughout the developed and emerging worlds, with many
Western nations following the United States into recession.

b. Industry Life Cycle

This industry is in the mature stage of its life cycle.

c. Industry Demand Determinants

 Worldwide automobile demand is tied to vehicle prices, per capita
disposable income, fuel prices and product innovation. On the supply end,
vehicle prices stem from material and equipment costs, with higher steel
and plastic prices raising manufacturers' purchasing costs and, ultimately,
retail prices. During the past five years, automakers have been plagued
with high steel and plastics prices, which have raised manufacturing costs
and product prices. On the demand side, per capita disposable incomes
determine affordability for consumers.

3. INTERNAL ENVIROMENT OF TOYOTA:

a. Core Competency

The core competence of Toyota Motor Corporation is its ability to

produce automobiles of great quality at best prices, thereby providing a
value for money to the customers. This core competence of quality can be
attributed to its innovative production practices. The quality aspect of
Toyota’s products have revolutionized the automobiles in the past and
almost all the automobile companies had to try and better the quality of
their products. It is a cornerstone of the cost leadership strategy that the
company pursues.

b. Distinctive Competency

Toyota’s distinctive competence is its production system known as the

“Toyota Production System” or TPS. TPS is based on the Lean
Manufacturing concept. This concept also includes innovative practices
like Just in Time, Kaizen, and Six Sigma and so on. Toyota has worked
tirelessly over the years to establish this distinctive competence. No other
automobile manufacturer can do it as well as Toyota does. This distinct
competence has led to a competitive advantage that has given Toyota a
sustainable brand name and a market leader position.

c. SWOT Analysis

Strengths:
1. Strong market position and brand recognition
2. Strong focus on R&D
3. Extensive production and distribution network:
Weaknesses:
1. Product recalls could affect brand image
2. Declining sales in key geographic segments
3. Poor allocation of resources as compared to peers
Opportunities:
1. Growing global automotive industry
2. Toyota poised to benefit from growing partnership with BMW
3. Strong outlook for the global new car market
Threats:
1. Intense competition
2. Appreciating Japanese Yen a major concern
3. Natural disasters could impact production structure

d. Toyota’s Efforts in Emerging Economies

Toyota’s emerging market sales have increased significantly in the

period 2000 to 2011, from 18.6% to 45%. 20 If this trend continues,
Toyota’s sales in emerging markets will shortly surpass its sales in
developed markets. Toyota successfully observed and responded to the
needs of the rising of middle class in the emerging markets. Through
localization initiatives, Toyota designs and produces cars in these markets
to meet these consumers’ unique needs.

e. Toyota’s Strategic M&A, Partnerships, Joint Ventures, and

Strategic Alliances
Top Strategic M&A, Partnerships, Joint Ventures, and
Strategic Alliances
 CHAPTER III

A. KIND OF TRADE & INVESTMENT, COMPANY BARRIERS

1. Kind of Trade

 Overseas Manufactured  Franchise

Toyota first began selling cars in Indonesia in 1971 and began
producing them in 1977. Toyota entered the market via a joint
venture with Astra Motor. 21 From 2008 to 2012, sales have more
than doubled from 199,000 units to 409,000 units. 22 In terms of
market share, Indonesia is Toyota’s best performing market, with
an estimated market share of 40%. 23 Four of the top ten best-
selling cars in Indonesia are Toyotas, with the Toyota Avanza
taking the clear lead. The success of Toyota in Indonesia can be
attributed to its “Innovative International Multi-Purpose Vehicle”
strategy launched in 2003. Specifically, Toyota designed and
produced cars in Indonesia to meet the needs of the local market,
with the Toyota Avanza priced at $16,000. Toyota launched its
second auto plant in Indonesia in March 2013 at an investment of
$340 million, and earlier this year, Toyota announced that it plans
to invest an additional $1.3 billion over the next five years. 24 If
Toyota proceeds with this plan, this will represent a doubling of
Toyota’s FDI of the last 40 years in the country. Motives for
Toyota’s FDI initiatives in Indonesia include:
 • To capture Indonesia's growing middle class; which is expected
to double by 2020.
• To maintain its market dominance.
• In response to Government incentives for new car buyers, which
include tax breaks as low as 0% for low cost
eco-friendly cars, while maintaining interest rates in the low
single-digits

2. Kind of Invesement

Portfolio Investments

3. Company Barriers

Intense competition: The worldwide automotive market is

highly competitive. Toyota faces strong competition from
automotive manufacturers in its various markets. The competition
among various auto players is likely to intensify in light of
continuing globalization and consolidation in the worldwide
automotive industry. The factors impacting competition include
product quality and features, the amount of time required for
innovation and development, pricing, reliability, safety, fuel
economy, customer service and financing terms. Increased
competition may lead to lower vehicle unit sales and large
inventory, which may result in downward pricing pressure, thus
impacting the financial condition and results of operations of the
company. 17
Appreciating Japanese Yen a major concern: Toyota is
sensitive to the fluctuations in foreign currency exchange rates and
is principally exposed to fluctuations in the value of the Japanese
Yen, the US dollar and the Euro. The strengthening of the
Japanese Yen against the US dollar and fluctuations in foreign
exchange rates would have a material adverse effect on Toyota's
reported operating results, which in turn would impact the
valuation of the company. 18
Natural disasters could impact production structure: Toyota is
subject to disruption of production due to natural disasters such as
earthquakes, floods, among others. Toyota primarily operates in
Japan which is a highest earthquake prone region in the world. The
country has witnessed many devastating earthquakes in the recent
years which seriously disrupted the economy. In 2011, the country
witnessed one of the worst hit earthquakes in its history in the form
of 2011 Tohoku earthquake, which led to a temporary production
halt at its domestic auto manufacturing facilities. In the same year,
major floods occurred in Thailand which halted its operations and
production of about 150,000 Toyota automobiles. Such natural
calamities, if occur frequently, could severely influence the
production output of the company due to work stoppages and in
turn impact the overall revenue base and profitability.
 CHAPTER IV

A. INTERNATIONAL STRATEGY MANAGEMENT

1. Business Unit strategy :

Taylor’s Fortune Magazine article describes the story of a man named

Akio Toyoda and his vision for Toyota’s future. Akio has had a very
difficult past few years: US market share fell from 18.3 percent from 2009
to 12.9 percent in 2011. Akio formally apologized before congress for his
company’s deathtraps that accelerated out of control. And, tsunamis
ravaged Japan, which killed over 15,000 and halted production at a
number of factories while disrupting the supply of 500 parts.
Akio made the following four fundamental changes to reposition Toyota:
Focus on designing brands that excite US buyers: “To give Lexus a
sportier image, he championed the development of the $375,000 LFA, a
carbon fiber super-car.
Be Fast and Move Quickly: Akio shrank the “board of directors by half
and took out layers of management.” Akio also meets with five top
advisors ever week and makes decisions on the spot without written
agendas.
No more Executive Rotation: Previously, executives rotated positions. A
product engineer, for example, could work on manufacturing. No longer—
executives stay at the position that they are best at.
“Always make better cars” mentality: This Spring, Toyota will launch the
plug-in Prius. It's a $32,000 car that has a battery that can run for 15 miles
without gasoline.
In this message he continuing to foster Toyota’s competitive advantage
with its “lean production system,” while, at the same time, demanding that
the company innovate and produce more exciting cars. Akio’s strategy to
keep executives in one place should help improve Toyota’s quality while
avoiding another recall disaster. And finally, his “always make better
cars” mentality is not lip service. As the grandson of the company’s
founder, Akio cares more than anyone about continuing his family’s
success. His ultimate goal is to restore honor to Toyota’s name.

Management’s critical role is to motivate and engage large numbers of

people to work together toward a common goal.

“Defining and explaining what the goal is, sharing a path to achieving it,
motivating the people to take the journey with you, and assisting them by
removing obstacles --- those are management’s reason for being.”
 Its success is derived from balancing the role of people in an
organizational culture that expects and values their continuous
improvements, with a technical system focused on high-valueadded
“flow”.

2. Product
3. Strategy of Toyota

Toyota using “Transnational” Stategy because of market segmentation

based on regional approaches. The difference is that special Toyota makes
certain products for one particular region. done by producing Yaris to the
European market, with the design and all its components are aimed to
meet the needs of the European region. According to Hermawan
Kartajaya, this strategy is looking at the market of dynamic attribute
 segmentation based on consumer behaviour. Consumers in Europe prefer
to use a small car that is suitable for narrow streets in Europe, so it is
certainly a car seller of Yaris type will be more profitable than the Land
Cruiser type which is more suitable on a wide road. Here Toyota
attempted to seize the Volkswagen and Mercedez markets which are also
small car types.
Yaris Segmentation strategy in European market also succeeded because it
is supported by Toyota branding. Brand according to Hermawan Kartajaya
is an asset that creates value for customers. High value is indicated by a
high total get ratio and total give to the customer. Two elements total get
is the functional benefit and emotional benefit has been owned by the
brand Toyota. In a functional benefit, Toyota is believed to be a car that
provides high value benefits, because in addition to saving in the use of
fuel, reliable quality, and durable machines with arguably simple
maintenance. Therefore, the emergence of the Toyota Yaris in Europe was
responded positively.

4. International Strategy components

a. Resource deployment
Some ways of looking at a market :
1. Static Attribute Segmentation
View markets based on geographic or by region, and based on
demographics or based on gender, age, occupation, religion, and
education.
2. Dynamic attribute Segmentation
Looking at the markets based on the dynamic properties that
reflect the customer's character, can be of interest, habits, attitudes,
beliefs, and so on.
 3. Individual segmentation
Look at the market personally, directly to each individual

b. Synergi

TAM (Toyota Astra Motor) was established on 12 April 1971 as an

importer for Toyota vehicles, and was transformed into a distributor
company for the same brand vehicles a year later. Since Toyota's first entry
into the Indonesian automotive market through TAM, Toyota had been
known in the market through various car models. The earliest models
introduced by TAM were Corona and Corolla. Corona, a mid-size family
sedan, included the T-series, which periodically changed models in 1974,
1978 and every other four years until in 1998 when it was discontinued to
undergo a model change to Camry. Corolla was also introduced in Indonesia
in the early 1970s, and entered its third generation by 1975. This most-
popular and most-sold-in-the-world compact sedan had captured the
Indonesian market since then. Toyota had created a new trend in sedan
design: small, compact, and with rear-wheel drive. Both Corona and Corolla
were highly accepted in the market during the early years. Later, other
Toyota sedans entered the Indonesian market, such as: Starlet – a small
hatchback, and was discontinued in 1998, Soluna – a subcompact sedan from
Thailand was launched in 2000 and discontinued in 2003, and Cressida – a
large-sized sedan introduced in 1977 and discontinued in 1992, and Toyota
Crown.
Toyota, through TAM also manufactured cars in other segments. In 4x4
class, Toyota introduced Land Cruiser which initially produced in 1950 and
entered the Indonesian market in mid 1970s and was colloquially called
“Toyota Hardtop”. This car was not only used for individual purposes, but
also for industrial and military purposes. Specifically for commercial
purposes, Toyota launched Toyota Dyna and Toyota HiAce; the latter was
discontinued, only to return in 2012 as a large van. All of these models had
been highly acceptable in the Indonesian market in the previous 26 years, but
the story of Toyota's real success in Indonesia started in 1977 when the first
Kijang was launched in Jakarta. This multi-utility car was known for its easy
and low-cost maintenance and was later become a legend in the Indonesian
automotive market.
The production departement, later in 2003 became PT Toyota Motor
Manufacturing Indonesia, conducted functional activities included casting,
engine, stamping and assembling automobiles. Some components were
directly supplied from Japan by Toyota Motor Corporation and the remaining
was supplied by local components suppliers. Meanwhile, the marketing
division was divided into overseas and domestic markets.

c. Distincive competence

1) Cars specialized to meet tastes and car sense: Lexus, Celica.

 2) Fleet and personal transportation vehicles / SUVs: Land
Cruiser, Truck.
3) Compact town cars: Yaris, Auris, Aqua.
4) Next-generation vehicles such as green vehicles and concepts:
Prius+, Lexus GS.

d. Scope of operation

1. Regionsentric Approach

Special Toyota make certain products for one particular region.

done by producing Yaris to the European market, with the design and all its
components are aimed to meet the needs of the European region.
According to Hermawan Kartajaya, this strategy is looking at the market of
dynamic attribute segmentation based on consumer behaviour. Consumers
in Europe prefer to use a small car that is suitable for narrow streets in
Europe, so it is certainly a car seller of Yaris type will be more profitable
than the Land Cruiser type which is more suitable on a wide road. Here
Toyota attempted to seize the Volkswagen and Mercedez markets which
are also small car types.

Yaris Segmentation strategy in European market also succeeded because it

is supported by Toyota branding. Brand according to Hermawan Kartajaya
is an asset that creates value for customers. High value is indicated by a
high total get ratio and total give to the customer. Two elements total get is
the functional benefit and emotional benefit has been owned by the brand
Toyota. In a functional benefit, Toyota is believed to be a car that provides
high value benefits, because in addition to saving in the use of fuel, reliable
quality, and durable machines with arguably simple maintenance.
 Therefore, the emergence of the Toyota Yaris in Europe was responded
positively.

2. Product Development Next-Gen Vehicles

Next-Gen Vehicles is a vehicle aimed at adjusting the trend to future

technological developments where it is aimed at producing
environmentally friendly technology. It is applied by developing hybrid
vehicle, electric vehicle, plug-in hybrid vehicle, and fuel cell vehicle.

5. SWOT
 CHAPTER V

A. MARKET ANALYSIS

Toyota Motor Corporation is well-known Japanese

Multinational Corporation. It is the world’s second largest
manufacturer of automobiles, trucks, robots, buses. In addition to
manufacturing automobiles, the company also provide financial
services to its customers (About Toyota 2010). The company was
established by Kiichiro Toyoda in the year 1937 as an offshoot
from his father’s company Toyota Industries to produce
automobiles. The company headquarter is in Japan and it operates
all over the world.

The company designs and constructs a varied product line-up

that admits subcompacts to luxury and sports vehicles along with
SUVs. The company produces its entire vehicle either with
combustion or hybrid engines, as with the Prius. As well, the
company also produces several automotive parts for its own use
and sale (Toyota Motor Corporation Company Profile 2010). The
company well known models are the Camry, Land Cruiser,
Corolla, luxury Lexus line, and the Tundra truck. As of 2009, the
company employs 71,116 people all over the world.

The company operates with an all inclusive concord among

people, society, and the worldwide environment. As well, it also
believes in the sustainable development of society, through
inventing. The company’s marketing strategy assist it significantly
in attaining harmony between people, society and global
environment (Toyota Vision and Philosophy 2010). Here, in this
paper the evaluation of company’s marketing strategy will be done
so that it can be recommended with a new marketing strategy. This
paper will be completed in two parts in which first one will deal
with the evaluation of Toyota’s marketing strategy on the basis of
different marketing theories. Other will deal with the development
of new marketing strategy for company’s existing car Corolla.
 Critical Evaluation of the Toyota’s Marketing Strategy :

Toyota Motor Corporation is a leading automobile

manufacturer that operates all over the world. The company’s
success in different nations is all because of its marketing strategy
that is devised with all essential planning and market analysis
(Kotler, Keller, Brady, Goodman & Hansen, 2009). From the time
of its inception that company has altered its marketing strategies
number of times according to the need of market and specific
location. The company is aware with the fact that all customers
cannot be handled with an identical approach and needs different
attention and handling (Gilligan, Sano & Wilson 2003).

The company’s corporate goal is to maintain its position in the

automotive industry as a market leader and continue its growth
along with the improvement in profitability and shareholders
returns. All goals of company are realized with the help of its
different and unique marketing strategies (Shimokawa 1994). Its
marketing strategies are designed by considering all its goals,
policies and guidelines so that an exclusive business model can be
created in spite of weak business model.

The company’s marketing strategies are to innovate, penetrate

market, differentiate and product development. All these marketing
strategies assist company significantly in expanding its operations
all over the world (Kotler, Keller, Brady, Goodman & Hansen,
2009). All these marketing strategies of company are aligned with
its corporate goals as it makes use of technology, production and
marketing, affirmed by quality control improvements, toning cost-
competitiveness and employees’ development (Pride, Hughes &
Kapoor 2008).

For realizing its all marketing strategies the most important

element is the use of technology. The company believes in
innovation and differentiation and the adoption of these marketing
strategies by company are related with the present needs of
customers. Nowadays, consumers are highly aware about the
environmental issues and a company involved in these issues
cannot attract consumers. Market is full of competitors that serve
consumers with several different types of automobile on the basis
of different needs of consumers (Shimokawa 1994).

Recognition of all these aspects going on in the market is

essential for a firm and Toyota does it very well. The company’s
marketing strategies are highly based on vital marketing theories
related with the needs, desire and buying pattern of consumers.
The different marketing strategies of the company facilitate it in
managing its position in different international locations (Kotler &
Armstrong 2010). In Asia, the company works with marketing
strategies like innovate and differentiate for product development.

For targeting Asian consumers, the company adopt different

means and measures in comparison to some other nation like U.S
or Europe (Walker 2006). Different and well-planned marketing
strategies of Toyota help it in reaching to its different consumers
all over the world by adopting an appropriate marketing mix and
STP (Segmentation, Targeting and Positioning) approach
(Shimokawa 1994). With the help of its effective marketing
strategies, the company has become able in dealing with its core
competitors and developing an effective marketing plan to reach its
all goals.

Its marketing strategy help company management in

undertaking decisions related with product, price, place and
promotion along with an evaluation of competitors’ product, price,
and place and promotion decisions. Till now, company has
expanded its operations in 200 countries all over the globe and it
has become possible for company due to its effective marketing
strategies (Hill & Jones 2008). The company’s ambitious market
penetration strategy is linked up with its skilled demographic and
psychographic segmentation and targeting. It has successfully got
high level.

The effectiveness of company’s marketing strategy can also be

understood with the help of its well-developed integrated
marketing communication plan. Its integrated marketing
communication plan is the result of its marketing strategy that is
related with all company goals, principles and philosophies,
customer needs, competitor analysis and market trends (Jeannet &
Hennessey 2005).

The Toyota Motor Corporation has become able in diversifying

its automobiles with a marketing strategy of branding right car in
the right location. For example the company has launched a flex
fuel vehicle in the Brazilian market. This vehicle will run on 100%
bio-ethanol fuel. As well, Toyota has launched hybrid electric car
Prius for most of the markets of the US, Japan, and EU (Pride,
Hughes & Kapoor 2008). Brazilian customers want a fuel efficient
car whereas in US, Japan and EU nowadays customers like hybrid
cars.

The consideration of consumers needs by company

demonstrate that Toyota’s all marketing strategies are the result of
effective planning and customer needs analysis. In addition to
market penetration, the company believes in serving its customers
with continuous product development. This strategy of the
company serves its management in the management of their
product life cycles (Pride, Hughes & Kapoor 2008). Marketing
products with continuous development helps the company n
growing their product without allowing them to be matured and
reach at decline stage.

The company’s marketing strategies is developed in a way that

facilitates it in concentrating on its distinctive skills and resources
in the direction of sales enhancement and increase in market image
(Viardot 2004). The Toyota’s marketing strategy integrates
different aspects like product development, promotion, pricing,
distribution and relationship management along with several other
elements that are essential for a firm’s marketing strategy (Zahay
& Griffin 2010).

Company’s different marketing strategies that integrate all

above discussed aspects guide its management in the identified of
specific marketing goals. As well, it also helps in the identification
of ways through which all marketing goals will be realized (Kotler
& Armstrong 2010). The effectiveness of Toyota’s marketing
 strategy can also be evaluated by analyzing following aspects
related to its marketing strategies:

Importance and Use of Information in Toyota’s marketing

Strategies:

The company’s all marketing strategies are based on the

significant use of diverse information related to its own resources,
customer needs, market analysis and trends and competitor
analysis. Before entering a market, company develops a marketing
strategy that is developed along with following analysis so that
significant information can be collected:

1. Analysis of its own organizational resources that is essential to

manufacture automobiles in a specific location.

2. Customers need analysis in terms of automobiles, their features

and prices.

3. Macro and micro environmental analysis along with SWOT

analysis, PESTAL analysis and value chain analysis (Pride,
Hughes & Kapoor 2008).

4. Competitors’ analysis and identification of their core competencies

and competitive advantages.

5. Business pattern followed in a target market according to the

consumers’ perceptions and trends (Lancaster & Reynolds 2005).
 By analysing all above discussed aspects, the company become
able in collecting significant information about a specific target
group or market that in turn assist Toyota in undertaking specific
marketing decisions. Without all these information, it is not
possible for the company to develop effective marketing strategy
that may help it in realizing all its pre-determined marketing goals
and objectives (Kotler & Armstrong 2010). All its product, price,
place and promotion related decisions are based on information
that evidences that information is very important for Toyota Motor
Corporation and in the development of its marketing strategy.

Relation of Marketing Strategy to Overall Organizational

Strategy:

The overall organizational strategy of Toyota Motor

Corporation is to assert its position as a market leader in the
automotive industry and to extend its growth by improving
profitability and shareholder returns. On the other hand, the
company marketing strategies are to innovate, market penetration
and differentiation (Wood, 2007). All these marketing strategies’
assist company in maintaining its continuous position and in
working in the direction of continuous improvement and growth
by offering customers with different and unique automobiles
(Kotler & Armstrong 2010).

The above discussion evidences that there is a significant

relation between Toyota’s marketing strategy and overall
organizational strategy and due to this the company had become
able in attaining all its business goals (Hill & Jones 2008). The
company’s marketing strategies’ are significantly associated with
its overall organizational strategy. The company strives for
continuous organizational growth and for this it had adopted
marketing strategy of penetration and innovation so that from
time-to-time customers can be served with new automobiles
(Wilson & Gilligan 2005).

For continuous growth and profitability enhancements the

company have adopted strategy of product development that
assists it in continuously doing significant research and
development and improving its automobiles at global level (Wood
2007). The selection of different marketing strategies’ to realize its
diverse organizational goals also evidences that how Toyota’s all
marketing strategies’ are related to its overall organizational
strategy. Due to this association between marketing strategies and
overall organizational strategy, Toyota Motor Corporation has
become able in reaching different parts of the world (Pride,
Hughes & Kapoor 2008).

Incorporation of Global Context into Toyota’s Marketing

Planning:

Toyota Motor Corporation is a multinational firm that operates

in more than 200 countries. The company’s marketing strategies
like innovation and differentiation are selected to reach over global
customers. Its management is trained to think at global level rather
than only thinking about domestic level operations (Hill & Jones
2008). The company try to innovate and differentiate by learning
from global automakers and industry players. Its marketing
strategies differentiation and innovation demonstrate that company
marketing planning is done in concern to global level operations’.

From the time of its inception, all its marketing planning is

done in regard to its global expansion and thinking beyond
boundaries. The company believes in serving the needs of different
country’s customers and due to this it develops all its employees in
a way so that they can think globally and take company in the
direction of continuous organizational growth and extension
(Wood 2007). Toyota Motor Corporation and its employees
operate with the principle of innovation and continuous
differentiation so that world’s different customers need related to
automobiles can be fulfilled effectively.

The company’s different marketing plans are built with the

consideration of global level operations and attainments and this
helps Toyota in positioning itself as a global level brand in spite of
national brand (Hill & Jones 2008). The present global level
position of the company is the result of its effective and well-
thought marketing planning.

Integration of E-business strategies in Marketing:

Toyota Motor Corporation is a well known global automobile

brand that operates with advanced technologies and e-business
strategies. The company’s all marketing strategies also include
diverse e-business strategies for their effective management and
implementation (Pride, Hughes & Kapoor 2008). The continuous
product development and innovation at its different locations is
 done with the help of different e-business strategies like internet
and advanced information technology and communication
systems. Now for managing all its marketing strategies and
facilities the company also make use of different advanced systems
that can be accessed by all locations of firm (Kotler & Armstrong
2010).

Internet assists company and its customers in getting associated

and resolving their queries instantly. With their own websites and
blogs the company is also become able in delivering all its
marketing goals to its employees. As well, all information about its
differentiation in comparison to competitors and innovative
automobiles is also delivered through its blogs and websites (Hill
& Jones 2008). With the advanced e-business means it can easily
deliver information and awareness about all its efforts to its
customers that in turn will attract more and more customers from
global locations.

The use of internet and websites demonstrate that the company

significantly integrates diverse e-business strategies with its all
marketing strategies’ and due to this it has become able in
implementing them effectively.

C. ALLIANCE OF TOYOTA
 1. Toyata with Subaru

Toyota Motor Corporation (Toyota) and Subaru Corporation (Subaru) agreed

today on a new business and capital alliance with the aim of further developing and
strengthening their long-term partnership.

To deepen their relationship and to strengthen their ties toward advancing to

the next stage, while respecting the identity of each other's brand, the two companies
have agreed that Toyota will increase its equity stake in Subaru and that Subaru will
acquire shares in Toyota.
 Toyota will acquire shares in Subaru up to an amount that will result in
Toyota having a total of 20% of voting rights in Subaru. Toyota currently has 16.83%
of voting rights in Subaru and gaining an additional 3.17% equates to 24,289,500
shares based on the status of Subaru shares as of March 31. In return, Subaru will
acquire shares in Toyota equivalent to the monetary amount (up to 80 billion yen)
necessary for Toyota to acquire a minimum of 20% of Subaru shares. The share
acquisitions are subject to the approval of competition authorities

Cars for the CASE era

By strengthening their bonds and aligning their capabilities, Toyota and Subaru aim
to pursue driving enjoyment in the CASE (connected, autonomous, shared, and
electric) era and to make even better cars than either company has produced so far.

Commenting on today's agreement, Toyota President Akio Toyoda said: ‘During this
once-in-a-century period of profound transformation, even if CASE changes how cars
will be, driving enjoyment will remain an inherent part of automobiles and is
something that I think we must continue to strongly preserve. I, myself, am a rallyist,
and, through my experience of training hard in an Impreza, I have felt in my veins the
wonders of Subaru's AWD technologies. Meanwhile, we at Toyota have been going
all out to hone our all-wheel-drive technologies by participating in the World Rally
Championship, among other activities. Our companies, both of which have long
pursued driving enjoyment, now want to pursue the possibilities of making ever-
better cars suitable for the CASE era by bringing together our strengths and by further
deepening our relationship.’

Subaru President Tomomi Nakamura said: ‘Between our company and Toyota is an
alliance that already has a history of 14 years. During this time, we have deepened
our bonds in various fields such as product development, production, and sales,
including through personnel exchanges. By taking our relationship one step further
and mutually honing our technologies, we will strengthen our ability to respond to
CASE and other demands, and will accelerate our shared aspirations for making ever-
better cars. This new step in our alliance with Toyota will lead to enhancing
'Enjoyment and Peace of Mind' that Subaru is committed to deliver; and I am
confident that our customers will love what we offer through these efforts.’

Strengthening partnership

Toyota and Subaru announced in June that they will jointly develop a platform for
battery electric vehicles. Models planned on the platform include midsize and large
passenger cars and a compact SUV, all of which will feature Subaru's AWD
technology and Toyota's vehicle electrification technologies. The SUV will be sold
under each company’s brand and builds upon a partnership between the two OEMs
that goes back to 2005.

Ever since the agreement on business collaboration in 2005, the partnership between
Toyota and Subaru has included contract production by Subaru of Toyota vehicles
and Toyota supply of vehicles to Subaru, as well as joint development of the rear-
wheel-drive Toyota 86 and Subaru BRZ sports car models.

2. Toyota with Mazda

Toyota Motor Corporation (Toyota) and Mazda Motor Corporation (Mazda)

signed an agreement today to enter a business and capital alliance, with the aim of
further strengthening their lasting partnership.

Today's agreement is a testament to the positive result of two years of

collaborative and deliberate discussions between the two companies, and it is a
milestone in the journey to further strengthen and accelerate the partnership in a
sustainable way.
 Specifically, the companies agreed to: 1) establish a joint venture that
produces vehicles in the United States, 2) jointly develop technologies for electric
vehicles, 3) jointly develop connected-car technology, 4) collaborate on advanced
safety technologies and 5) expand complementary products.

In addition, together with the aim of advancing and strengthening their long-
term collaboration, Toyota and Mazda agreed to a capital alliance arrangement that
preserves independence and equality for both companies. In the capital tie-up, the two
companies have agreed that Toyota will subscribe for and acquire shares to be newly
issued by Mazda through a third-party allotment, and at the same time Mazda will
subscribe for and acquire third-party allocation shares of treasury stock disposed of
by Toyota in the equivalent amount in value to the Mazda shares. The value of the
shares mutually acquired by both companies will be equivalent.

Marking the agreement, Toyota President Akio Toyoda said: "The greatest fruit of
our partnership with Mazda is that we have found a new partner who truly loves cars.
It has also sparked Toyota's competitive spirit, increasing our sense of not wanting to
be bested by Mazda. This is a partnership in which those who are passionate about
cars will work together to make ever-better cars. It is also the realization of our desire
to never let cars become commodities."

Representing Mazda, President and CEO Masamichi Kogai said: "Nothing would
please me more than if, through this alliance, we can help to energize the auto
industry and create more car fans by bringing together two competitive spirits to spur
each other on, leading to innovations and fostering talent and leaders."

The auto industry increasingly faces great challenges, including stricter

environmental and safety regulations for new vehicles and the entrance of
competitors from other industries, as well as the diversification of mobility-related
businesses. With the future of the industry in mind, in addition to leveraging their
individual strengths to further improve technologies and reinforce their business
foundations, Toyota and Mazda aim to deepen collaboration and achieve sustainable
growth through their partnership, rising to face and overcome these pressing
challenges.

On May 13, 2015, Toyota and Mazda entered an agreement to build a continuous
partnership that would mutually benefit the companies in such forms as leveraging
the resources of both companies and complementing each other's products and
technologies toward the goal of making more-appealing cars. Since then, both
companies have discussed various areas to explore, based on the principle of building
an equal and favorable relationship in the long term.

Over the medium- to long-term, the two companies will build a favorable relationship
that respects the autonomy and equality of each party and works toward success with
the agreed joint projects. With the aim of creating new types of value for future
mobility, they will accelerate and enhance bilateral cooperation as long-term partners
and contribute to the development of a sustainable society by exceeding customers'
expectations.

3. Toyota with Suzuki

Toyota Motor Corp. and Suzuki Motor Corp. are strengthening their alliance
by taking stakes in one another, seeking to bolster their position as the auto industry
shifts further toward electrified and self-driving cars.
 Japan’s biggest automaker will acquire about 5 percent of Suzuki shares for
about ¥96 billion ($907 million), while Suzuki will get a smaller holding valued at
about ¥48 billion in Toyota, the automakers said in statements Wednesday. That is
equivalent to 0.2 percent of Toyota’s shares as of Wednesday’s closing price, before
the announcement.

The move builds on ties established in 2017 between the two carmakers and is aimed
at expanding their collaboration to keep up with technological advances sweeping
through the transportation industry, from on-demand rides to cars that are no longer
powered by fossil fuels.

For Toyota, the alliance provides access to Suzuki’s expertise in India, which is on
track to overtake Japan and become the third-largest vehicle market in the world.

“Toyota is getting Suzuki at an attractive valuation,” said Janet Lewis, an analyst at

Macquarie Capital Securities (Japan) Ltd. “It appears to be very similar to the mutual
investments made between Toyota and Mazda.”

Toyota will pay ¥4,004 a share, lower than Suzuki’s closing price of ¥4,085 on
Wednesday. Suzuki shares are down 27 percent this year, following a 15 percent
decline in 2018 as the Indian economy cooled.

The tie-up highlights the challenges for automakers as they fight to keep up with the
breakneck growth in the industry.

Suzuki said it will use ¥20 billion of the proceeds on development of new
technologies including autonomous driving, and the remainder to replenish its capital.
Suzuki has been seeking to team up with a larger carmaker after an acrimonious split
with Volkswagen AG. Toyota has budgeted about seven times more on research and
development than Suzuki for this fiscal year, and the smaller automaker has pointed
to the soaring cost of making competitive cars as a reason to join forces with a
partner.
In February 2017, Toyota and Suzuki agreed to begin “concrete examination” of a
partnership in technology and procurement. A year later, they agreed to sell each
other’s hybrid cars and other vehicles in India. This March, Toyota further expanded
the alliance to supply its hybrid system to Suzuki globally, while Suzuki will sell
compact vehicles through Toyota in India and Africa. The carmakers also said they
plan to jointly produce electric cars in India in around 2020.

As the industry faces challenges from ride-sharing services to stricter emission

targets, smaller Japanese carmakers are increasingly relying on tie-ups with Toyota to
help tackle the issues. Toyota also has stakes in Mazda Motor Corp. and Subaru Corp.
and works with them on electric cars.

4. Toyota with Daihatsu

Alliances in the automotive industry are nothing new. Examples include Renault-
Nissan, Fiat-Chrysler, and Tata buying Jaguar Land Rover. Now, you can add Toyota
and Daihatsu to this esteemed list.

In a joint press conference, Toyota president Akio Toyoda and Daihatsu president
Masanori Mitsui made the monumental announcement before members of the media.
While it is no secret that Daihatsu has long been a subsidiary of Toyota, the former
will now be wholly owned by the latter. So what does this mean for both companies
and the auto industry as a whole?

We all know Toyota to be the world’s largest carmaker, with vast resources and a
proven track record. Daihatsu, on the other hand, has a reputation for churning out
some of the coolest small vehicles from the Land of the Rising Sun. This marriage
will strengthen both companies’ growth in the global market, by utilizing their
respective core competencies, to come up with quality products at competitive prices.
In plain English, Toyota will tap Daihatsu’s know-how in the small car business to
bring to market its own unique models in countries that have a strong demand for
such vehicles. With the microcar coming into its own, Toyota sees this alliance as an
opportunity to offer a new product much faster and more affordable to many.

On the other hand, Daihatsu has always wanted to grow in the global arena. While it
has been successful in markets like Indonesia, it is like any firm that wants to make it
big on the world stage. Moreover, it is aware that in order to survive, it must embrace
future technologies like alternative fuels and autonomous mobility. Unfortunately,
these require resources that it doesn’t exactly have. This is where Toyota can help. In
Japan, Toyota will take care of sales and infrastructure funding for their respective
operations.

As mentioned, the two carmakers have had joint ventures in the past. In fact, they
have been working closely together since 1967, and have come out with such models
as the Toyota Avanza/Daihatsu Xenia and the Toyota Wigo/Daihatsu Ayla. Apart
from these rebadged products, people might remember Daihatsu through nameplates
like the Feroza and Hi-Jet that came out in the late '80s. But with this new
development, we might just see more exciting products from both carmakers real
soon.
 CHAPTER VI

A. ADVANTAGES OF OWNERSHIP

World's largest automaker Toyota (NYSE:TM) is constantly trying to find

new markets to sell its cars -- with matured markets like the U.S. and Europe
offering limited growth opportunities in the long term, the spotlight is on
Asia. The region offers three big advantages -- high population, growing
disposable incomes, and lower car-ownership rates. China and India are old
news with the focus now on Southeast Asian countries such as Thailand, and
more recently, Indonesia.

Indonesia, the largest Southeast Asian economy, is becoming a favourite auto

manufacturing destination, and is expected to be the largest automobile
market among the Association of Southeast Asian Nations, or ASEAN, by
2019. Here are five reasons that put Toyota in a solid position to benefit from
this upsurge.

1. Market leader

Toyota's presence in Indonesia dates back to more than 40 years. It's been a
top seller in the region for a long time, and has more than 37% market share.
Last year, Toyota sold 434,000 cars, while its Japanese rival Honda
(NYSE:HMC) sold just 91,000. Detroit giant General Motors (NYSE:GM),
which has been operating in the country for far longer than Toyota, has
managed to garner just over 1% of the market.
Considering the potential offered by Indonesia, GM and Honda are
aggressively investing in the region. But matching Toyota's huge sales volume
will not be an easy task, at least in the near future.

2. Free Trade Agreement

Indonesia is a member of the ASEAN and has developed free market policies
with China, India, Korea, Japan, Thailand, Australia, New Zealand, as well as
other member nations. Free trade agreements with these countries, coupled
with low-cost facilities, have made Indonesia the sweet spot for export
activities.

Toyota's Thailand sales are slowing due to the ongoing political unrest in the
country and the Japanese giant could opt for a production cut. In such a case,
Toyota could easily import Indonesian-made cars to Thailand to meet
demand.

Toyota may also export more units from Indonesia to Australia and Middle
Eastern countries. The company will be shutting its Australian plant in 2017
in order to cut losses in the region. Australians have a weakness for Toyota
cars; any increasing demand can be fulfilled by importing cars from
Indonesia. Currently, 70% of total Australian production is being shipped to
the Middle East, and those orders can be moved to Indonesia after the Oz
plant closes.

3. Low car ownership and growing disposable income

The world's fourth most populous country has a dismal car ownership rate --
just 45 in 1000 own a car. The good news is that Indonesia's GDP is growing
and disposable income is going up. Higher disposable income means that the
populace will have more money to spend on things like new cars.
Auto sales in Indonesia grew 10.2% year over year to 1.22 million units in
2013. Analysts expect the industry to sell more than 1.3 million cars this year
and more than 2 million by 2018. Toyota is investing heavily in the region to
expand its production capacity and likely will be in a position to meet that
growing demand.

4. Growing popularity of eco-friendly cars

Environment-friendly cars are becoming increasingly popular in Indonesia,

mainly to get the tax incentive. The government initiated a "low-cost-green-
car" program past year in order to encourage the production of eco-cars as
well as to reduce the country's dependency on gasoline.

Toyota is investing heavily in Indonesia's green revolution. In September, the

company rolled out a green car model, the Agya, which has become a top
seller in Indonesia.

Honda, too, introduced its low-cost Brio Satya in November. GM has adopted
a wait-and-watch approach and may jump on the bandwagon going forward.

5. Big markets are levelling

The auto industry in the U.S., which is Toyota's biggest market, is levelling as
seen in the slowing growth rate on the graph below. Though Toyota expects
U.S. car sales to rise by 3% to touch 16 million units industry-wide in 2014,
the rate at which sales are increasing is much lower than previous years.
Demand for Toyota cars in the U.S. is likely to be driven by remodelling and
new launches, but it will happen at a slower pace.
Demand in the company's home market will also suffer this year. The Japan
Automobile Manufacturers Association expects auto demand to drop roughly
9.8%, owing to the increase in sales tax planned for April, which will make
cars more expensive to own.

Parting thoughts

Sales in Toyota's big markets are slowing, and Thailand is becoming a

constant pain. But there's not much to worry about as the automaker's close
business association with Indonesia could prove to be a ready Plan B for its
production hiccups in Southeast Asia. Car sales in Indonesia are going to
increase, and there is a lot of export potential in the country. Already a top
seller in Indonesia, Toyota will leave no stone unturned to capitalize on the
present opportunities.

B. TOYOTA USED PCN STRATEGY MANAGERIAL

Parent Country Nationals (PCN) is a resident of the country of origin

who works in international business the placement of PNC manager in
subsidiary operations abroad has advantages and disadvantages of profit,
among others, because the manager came from the head office in the
background The same education and culture, then communication and
coordination with the Central office staff is easy and if the company's
global strategy concerns the implementation of new technology or
business techniques developed in the host country market then the
manager Often to adapt the innovations to the host country of the Toyota
example of submitting a manager from Japan to start operations at the
 beginning of the opening of the factory where the Japanese managers want
to convince the manufacturing techniques and corporate commitments The
quality of production in the factory in Kentuky can be assured of both the
same Strategistafingl & USA done by the company Mersedes Benz at the
time of opening new factories in Alabama but the use of managers have
some disadvantages generally less Know the regulatory laws of the
country host cultural economic conditions social and political structure
although the manager can be trained to overcome the weakness of the
overnight training was Mahaldan raises the cost of opportunity for the
company considering Time and energy managers are very important and
other expensive is the cost is expensive to relocate managers from the
central office besides, many host governments limit the number of foreign
employees employed in the branch offices or Sunsidiari Hosted by In
country

C. TOYOTA USED HYBRID STRATEGIES PLANNING

 Hybrid strategies

Combine several pure strategies where more than one variable is

manipulated. In short, a hybrid strategy is a strategy by combining various
options to develop a plan. Although each choice of five capacity options and
three request options can result in an effective aggregate planning, some
combinations among the choice of capacity and demand options may be
better.
Many manufactures assume that the use of demand options has been properly
researched by the marketing section and the viable option it is coupled with
demand forecasting. Then the production manager makes an aggregate plan
based on that forecasting. However, by using five capacity options in its
authority, the production manager still has many possible plans. The plan can
be composed, on the one hand, a hunting strategy and on the other, a tiered
scheduling strategy. Of course it can be between the two.

1. Hunting Strategies

A hunting strategy tries to achieve the level of output for each periode that
meets demand forecasting for the period. These strategies can be fulfilled with
various roads. Example-production managers can vary the workforce level by
recruiting or terminating employees, or can vary production by changing
overtime time, vacant time, part-time employee, or subcontracting.

2. Multilevel strategy

A multilevel strategy (or multilevel scheduling) is an aggregate plan where

daily production remains the same from the period to the periodic. Example-
companies such as Toyota and Nissan maintain production levels at a uniform
level and may (1) Let goods inventory rise or fall as a buffer between
production and demand or (2) Find alternative jobs For employees. Their
philosophy is that the stable workforce leads to more quality products, fewer
absence and turnover of employees, and employees who are more committed
to the company's goals. Other savings include more experienced employees,
easier oversight and scheduling, and fewer startups and dramatic shutdowns.
Multilevel scheduling will work well when demand is sta

CHAPTER VII

E. MARKETING MIX’S TOYOTA

The research is given based on the concept of marketing mix which is

an inherent part of corporate marketing action. The marketing mix is the
accumulation of four elements of the market such as products, prices,
places and promotions. All four elements have the same implications for
the effectiveness of the company's marketing strategy. Companies
operating in all types of business industries using marketing mix in the
formation of various marketing strategies
It can be understood in a prominent way with the help of a Toyota motor
example operating in the automotive sector. The company has gained a
great competitive advantage through the application of marketing mix in
different and diverse marketing strategies. The marketing mix makes
Toyota with a number of competitive advantages in various aspects of
marketing activities.

1. Product
Mix products are a key element of the company's marketing strategy.
Toyota is famous for its quality products. It has a huge range of products
such as cars, trucks, vans, sports cars and hybrid products. In the car, the
most famous models of the company are the Corolla, Prius, Matrix, etc. of
the company's trucks including Tacoma and Tundra. In hybrid products,
Prius and Camry Hybrid are the most popular products. The product
features of all types of vehicles is a very high tech grounded. It comes
with fuel efficiency, attractive models and happy driving. Corporate
customers are grateful to the quality of advanced and most effective
products and this has provided great success for the company.

The company's product determination is incorporated into the company's

marketing strategy. The company's marketing department mainly
concentrates on market segmentation, according to the need to depart from
customers in order to meet the needs of strange market segments by means
of efficacious. In marketing strategies, companies also consider the brand
image of the product as an important aspect. With innovative branded
products, the company wants to implement a strategy of understanding the
entire car market (Chen & Hijau, 2009).

2. Price
Price is the most important element of the Toyota Motors marketing
strategy. The company has a very reputable pricing policy in contrast to
other automobile companies. The pricing of Toyota products is only
affordable by customers. The company's pricing policy is confirmed to
associate with different geographical segments according to the customer's
financial condition.

In marketing strategies, companies do not raise prices even after a huge

hike from competition in the car market. As part of its marketing strategy,
the company mainly concentrates on customer satisfaction with low cost
and quality based products (Toyota Motor Corporation, 2009).
3. Place
For the timely delivery of the vehicle, the company has spread out stores
in all the approached areas of the customer. The company's supply chain is
also very efficacious. The Toyota dealers supplied the vehicle to accurate
market places in an accurate time. For the effectiveness of marketing
strategies, the company concentrates on increasing sales and for those
adopting strategy alliances and Joint Ventures with a well developed
market. The marketing mix, especially the mixture of the company's
magnification strategy strikes. Because of this basis, the company
proposes to make disrupted changes in marketing strategies that match the
changing marketing conditions.

4. Promotion
Toyota's promotional strategy is invaluable. Through the Web portal, the
company provides very precise and good-time information about the offer.
The company coordinates the marketing campaign and completes the
vehicle demo as part of the promotional strategy (about Toyota, 2009). In
the implementation of promotional mix in marketing strategy, the
company makes each profit to customers such as very low rate of
installment interest and discount. In marketing strategies, the company
also concentrates on market surveys for the promotion of its products.

Therefore, the marketing mix is a central part of the Toyota Motors

marketing strategy. With the implementation of various elements of the
marketing mix, the company has created a very effective marketing
strategy and tactics. With a marketing strategy, structured on the basis of
elements of marketing mix, this company originated an excellent company
image and profitability among the entire car market today. It is also
 expected that if the company changes its marketing strategy and tactics in
accordance with the prerequisites of the customer related to the four
elements of the marketing mix, it will be able to assert the level of same
profitability in the future

F. FINANCIALHIGHLIGHT
 PT Toyota Astra Financial Services Booked net profit of Rp 22.50
billion in 2018, up 27.62% from the realization of the previous year,
which is Rp 17.63 billion.

Unfortunately, based on the company's financial statements, the profit is

not followed by the increase of revenues and the total assets of Toyota
Astra Financial. The company suffered a decrease in the amount of assets
to Rp 20.26 trillion in 2018, from the previous year of Rp 22.77 trillion.

Financing dropped, profit 4 Multifinance remained growing

In addition, the total revenue of the company also decreased, in 2018 the
recorded revenue of Rp 2.71 trillion from the previous Rp 3.12 trillion.
Meanwhile, the amount of liabilities and equity decreased by 11.02% to
Rp 20.26 trillion.

Just for information, Toyota Astra Financial provides car financing,

ranging from calculation of car instalments, easy car loans, competitive
financing options, and flexible installment payments to suit the needs of
customers.

Toyota Financial Services Corporation provides fi nancial services,

mainly auto loans and leasing, to more than 26,000,000 customers across
its network, which spans more than 35 countries and regions. In fi scal
2017, the fi nancial services business recorded net revenues of ¥2,017.0
billion and operating income of ¥285.5 billion.

Toyota’s fi nancial services center mainly on sales fi nancing,

which serves as a tool to promote car sales. At the same time, we are
working in new business areas to realize a better future mobility society.
The basic role of the fi nancial services business is to enable more
customers to use our cars. We do our utmost to fulfi ll that role by
promoting digitization, developing and offering new fi nancial products,
and expanding our network to countries where the automotive market is
growing. For example, in fi scal 2017, we established and began sales at a
fi nancial services company in Ireland. Furthermore, with the
automotive industry undergoing major changes, we are implementing
 initiatives to improve customers’ lifestyles and the convenience of society
as a whole by expanding our value chain to create added value through fi
nancial services across the car life cycle, from manufacture to disposal.
In addition, to help customers realize the joy and freedom of movement
through fi nancial services, we are partnering with such ridesharing
companies as Uber Technologies, Inc. and Grab Holdings Inc. and
working to apply the big data provided by cars in the telematics car
insurance business.

Going forward, we will continue to develop and provide fi nancial

services in line with customer needs and local market characteristics to
help enrich customers’ lives.

G. FINANCIAL’S COMPARISON ABOUT DOMESTIC &

INTERNATIONAL
H. CSR OF TOYOTA
1. Environment
As a commitment to environmental preservation which is also part of the
four main pillars of CSR Toyota, the Toyota Forest Program began to be
held in 2003 which focused on tree planting and mangrove conservation.

In addition, in the year 2005 Toyota began to host the Toyota Eco Youth
(TEY), which involved 85 SMA and SMK throughout Indonesia in its first
year. This event is a competition that aims to increase the self awareness
of the school environment and the surrounding community.

Mr. Balthazar Kambuaya :

Former Minister of Environment
The Toyota Eco Youth Program is very precise and relevant in relation to
our efforts to shape and build the mindset of the young generation of
Indonesia. We want to be 10-20 years in the future, Indonesia is supported
by citizens who are concerned and aware of the environment. I thank
Toyota who has been carrying out this Toyota Eco Youth activity, and I
hope this activity can be implemented continuously in the future.
2. Education
To realize future generations of qualified, Toyota participated in the
development of education in Indonesia.

This is evidenced by establishing the Toyota-Astra Foundation in 1974

which is engaged in education such as awarding scholarships,
entrepreneurial training, as well as assistance cost of research, props
and educational references. In addition to the foundation, Toyota
directly also provides education assistance for the surrounding library,
laboratories, and so forth.

Mr. Johan Iqbal :

Principle of SMK BKM Bekasi
With the help of props in the form of an Engine TR from Toyota, the
teachers can improve their competence so that it can eventually
develop the basic competencies of the students in order to compete
both in and out of the country. We are grateful to Toyota through the
Toyota Foundation and Astra for the help of this props.

3. Traffic Safety
Toyota's CSR Program in the field of driving safety is one of our
concerns that is expected to make a positive impact on the community.

As a form of attention to driving safety, Toyota organized the Simpang

Mampang improvement Program aimed at minimizing traffic
congestion and Safety Driving Course aimed at socializing the
guidelines Driving safety.
 Dr. Ir. Sutanto Soehodho, M. Eng :
Deputy Governor DKI Jakarta for Industry & Transporation
Very appreciates what Toyota has done in promote caring activities
against traffic and hope it can continue to be improved in the future

4. Comdev & Philanthropy

Toyota's CSR Program in the field of community development and
charitable activities is one of our concerns that is expected to make a
positive impact for the community.

This CSR activity is always held with a routine of both large and small
scale. Based on the pillars of sustainability (people-profit-planet) we
realize that the purpose of a company is not only to seek profit but also
to grow together with the community and the surrounding
environment.

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https://webcache.googleusercontent.com/search?q=cache:8NWz92P0-
08J:https://scholar.harvard.edu/files/tnkomo/files/analysis_of_toyota.pdf+&cd=11&h
l=en&ct=clnk&gl=id

Masaaki Sato, The Toyota Leaders, 1185 Avenue of The America 32nd Floor, New
York, NY 10036, Penerbit PT Buana Ilmu Populer, 2008

https://www.fool.com/investing/general/2014/03/12/5-solid-reasons-that-toyota-could-
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