marketing analysis of Toshiba
.0 Introduction
Humans always improve themselves from Stone Age to now. Equally, electronic products also are constantly ameliorated people usually utilize electronic products to make the life convenient, however, it is very expensive to put resources for researching and developing on it. Toshiba can achieve to improve electronic products. It helps us to change living and working mode. Then what is the market position of Toshiba? How Toshiba keeps pace with better?
2.0 Background
Toshiba's early history has two strands: 1875 saw the establishment of Tanaka Seizo-sho (Tanaka Engineering Works), Japan's first manufacturer of telegraphic equipment. Its founder, Hisashige Tanaka (1799 - 1881), was well known from his youth for inventions that included mechanical dolls and a perpetual clock. Under the name Shibaura Seisaku-sho (Shibaura Engineering Works)
In 1890, Hakunetsu-sha & Co., Ltd. was established as Japan's first plant for electric incandescent lamps. Subsequent diversification saw the company evolve as a manufacturer of consumer products. In 1899, the company was renamed Tokyo Denki (Tokyo Electric Co.).
In 1939, these two companies, leaders in their respective fields, merged to form an integrated electric equipment manufacturer, Tokyo Shibaura Denki (Tokyo Shibaura Electric Co., Ltd.). The company was soon well known as 'Toshiba,' which became its official name in 1978.
3.0 Marketing Effectiveness-Evaluation
* Segmentation
Before selling, Toshiba must categories which types of customers are the company's target. Then it strives for selling.
* Customers Acquisition
Before producing, Toshiba must investigate the preference of consumers, which identify efficiently what product consumer will accept.
* Channel Management
Before selling. Toshiba must realize which market they choose. Then, evaluating which types of channel distributions are suitable for Toshiba.
* Promotion Analysis
Before selling. Toshiba must evaluate the population of product. Then, anglicizing which types of advertising or promotion can build product reputation.
* Merchandize
Before producing, Toshiba must be ware of trend of product, raw material and accessories in order to implement initial pricing policy well.
4.0 Marketing Environment
5.0 Marco Environment
* Political
Japan is a developed country. She possesses complete legal, tax system, which can protect Toshiba because she provides safe place for Toshiba development. Cite as (Louis E. Boone & David L. Kurtz 2006)
* Economic
30 years ago, Japan experienced an economic downturn. It causes Japan government to adjust the interest policy. It helps Toshiba invest and develop as interest burden has been dropped up until now. Recently, American second mortgage affects global economic trend, especially, Japan is involved in this crisis. Because of US dollars value decreases. Japan Yen is fluctuated. It directly affects the export of Toshiba, since people may spend more money to purchase Japan products. Cite as (Louis E. Boone & David L. Kurtz 2006)
* Technology
Toshiba places more resources for research and development. It brings technology into new generation. However, there is a risk, as mot every technology is suitable for public. Toshiba should investigate which types of item can cater for the public. Cite as (Louis E. Boone & David L. Kurtz 2006)
New Battery
Solid-state drive (SSD)
6.0 Micro Environment
* Competitive
In the global market, Toshiba face many competitors such as Samsung, Panasonic etc. Those competitors approach same market. Toshiba must beware of those competitors' direction, as their products will directly fley or replace Toshiba product.
Competitors of Toshiba
* Suppliers
Toshiba is a large electronic enterprise. A majority of suppliers are willing to offer materials for Toshiba production. Those of the suppliers may offer competitive price in offer to keep long-term relationship with Toshiba.
7.0 Internal Environment
* Function & Department
Toshiba possesses economic advantages, like lower interest burden and abundant financial support. More resources can be put in Research and development. Moreover, complete accounting system is run in Toshiba accounting department, so that it can produce strict monitor of finance. Furthermore, Toshiba can control production cost efficiently and effectively, as the company possesses a good production department.
8.0 SWOT analysis
Internal
External
Strengths
Opportunity
Weaknesses
Threat
9.0 Strengths
* Strong Brand
Toshiba is the biggest electronic enterprise in Japan. A majority of Japanese possesses one or two Toshiba products. Moreover, Toshiba not only focuses on Japan, but also pays attention to global. Reputation of Toshiba can be increase.
Toshiba business distribution
* Technician
Toshiba possesses a lot of excellent technician for research and development. They provide those new techniques; such as A.I Robot. Those skills will affect human living evaluation. Which is an ...
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8.0 SWOT analysis
Internal
External
Strengths
Opportunity
Weaknesses
Threat
9.0 Strengths
* Strong Brand
Toshiba is the biggest electronic enterprise in Japan. A majority of Japanese possesses one or two Toshiba products. Moreover, Toshiba not only focuses on Japan, but also pays attention to global. Reputation of Toshiba can be increase.
Toshiba business distribution
* Technician
Toshiba possesses a lot of excellent technician for research and development. They provide those new techniques; such as A.I Robot. Those skills will affect human living evaluation. Which is an important asset of Toshiba.
Toshiba develops robot
0.0 Weaknesses
* Product dissatisfaction
Some of the products can't satisfy with consumer's expectation such as PDA phone G900 since window software can't support this product.
* Limited design and support
In substantial mobile market, Toshiba doesn't have significant status, as they can't design a popular mobile for consumers, similar competitors such as Samsung, LG can produce some popular mobiles to lead the market likes Samsung D908, LG KE850.
Samsung D908 LG KE850
1.0 Opportunity
* New Product Development
Toshiba can utilize their brand to operate a new market such as car.
* Cooperation with other company
Toshiba can cooperate with some companies to develop new product, such as Toshiba mix up with SEIKO to product a new technological watch.
2.0 Threat
* Competitors
In electronic products market, Toshiba faces a lot of challenges from the competitors such as Panasonic, Philips, and Samsung etc. They possess similar or above electronic technological skills. It directly affects Toshiba market position
* Japan (Yen) value increase
A majority of speculators borrow Yens to invest since there is lower interest rate. However, after American second mortgage crisis, the value of Yen constantly increases. It seriously affects the export of Toshiba.
3.0 Factors affecting pricing five Forces
* Bargaining power of suppliers
Toshiba is a substantial enterprise; a majority of suppliers must give better offer for Toshiba in order to keep long-term relationship.
* Threat of new Entrants
Nowadays, the market share of electronic products is very tight. It shares by several substantial enterprises such as Toshiba, Panasonic, Samsung, and LG etc. It is very difficult for other Entrants to join the market.
* Threat of substitutes
There are many substitute can replace Toshiba's product
In mobile-Samsung, LG, NOKIA
In notebook- Hp, NEC, SONY
4.0 Market Segmentation
It relates to segmentation base and profile. There are two major markets segmentation for Toshiba. Those are Demographic and Behavioral.
* Demographic Base
. Family size-the expected family size is 3-4 for Toshiba household product such as T.V, Refrigerator
Toshiba refrigerator (For 3-4 member size)
2. Annual Income-Toshiba focuses on the people in middle asset. It expects target consumers range between $10,000-$14,000 and $15,000-$19,000.
3. Occupation-In market of notebook, USB. The targets of Toshiba are businesspeople, students. Moreover, in market of household. The target is homemaker.
These variables provide an objective, factual and descriptive base for categorizing consumers. Toshiba bases on the above factors to separate the consumers. Cite as (JOSHUA GROSSNICKLE &OLIVER RASKIN 2001)
* Behavioral base
. Occasion-Toshiba expects the product can be used in regular occasions, such as Household product. Family must use everyday
2. Benefit-Toshiba knows target customers need qualified product, good after sales service, competitive price and product can use smoothly.
3. User Status- all users are approached by Toshiba, such as ex-user, potential users, first-time users etc.
4. Usage Rate-Heavy users are Toshiba target
5. Loyalty-Medium
The above variables are let Toshiba know who use its product, so that Toshiba can Take care of them. Cite as (JOSHUA GROSSNICKLE &OLIVER RASKIN 2001)
5.0 Market Position
Toshiba marketing mixed strategy distinguishes between consumer views and ideas.
* Product attributes
Toshiba products are living and working necessities
For example-washing machine for living condition
, USB for working
Toshiba Washing machine Toshiba USB
* Usage Occasion
Consumers do not always purchase Toshiba products. It is not vital for them to buy every day. They may purchase Toshiba products once or twice a year to replace their broken products.
* Against from competitors
Toshiba market segment is steadily increasing and the competitor's sales keep in normal pace. Toshiba is situated at t safe place.
* Products classes
Toshiba Notebook- Satellite
- Protégé
- Tecra
- Qosmio \
Satellite Protégé
Toshiba Satellite series Toshiba Ultra portable series
Qosmio Tecra
New TV note Series Toshiba Professional series
LCD TV-REGZE
Toshiba REGZE LCD TV
Colour TV- BOMBA
Toshiba BOMBA 29 flat screen Toshiba BOMBA 29Conventional Screen
Household-Toshiba
* Product Differentiation
Toshiba business focuses on notebook and T.V Four style are divided into notebook. It provides more choices to consumers and makes difference. Comparing to other brand notebooks as Toshiba notebook are more specifically fit the consumers' need.
* Image Differentiation
Toshiba is very famous in notebook market. People will definitely know Toshiba. If you call notebook model such as protégé, which is like you, will think of McDonald when you see "M" sign.
6.0 Product Dimension
* Core
Toshiba products are divided into second type. Formerly, it focuses on family. Subsequently, it is efficient for working such as notebook. The core benefit or need of notebook is used for coordinating computer work. Toshiba notebook can fully achieve this core benefit or need, so Toshiba notebook is very popular in the market. Moreover, another product of Toshiba also can reach core benefit, so it consolidates market position.
* Actual Product
Toshiba products are fully satisfied with second dimension. The products possess high quality since there's no outsource step. The products have feature and style such as PDA phone G900. It is the first PDA phone produce by Toshiba, which is generated by notebook design (Protégé). Then brand and package are concentrated in PDA phone.
Toshiba is the biggest electronic brands in Japan and possesses reputation in the world market
Next, Japan products always focus on packaging. Toshiba is the same its product package is excellent.
Toshiba PDA phoneG900
* Augmented
In the last dimension, not all companies need to fulfill it. Nonetheless, Toshiba can produce last dimension, so that consumers are contented to purchase Toshiba product. For example, notebook is installed with all related software and hardware, which provides one excellent after sale service and warranties, Consumers can change the hold notebook within 2 weeks and spare parts within 3 years
7.0 Product life cycle
Toshiba possesses a lot of products. They have different product life cycle. We specific focus some type of products.
* Introduction Stage
Toshiba smart mobile G500 & PDA phone G900 start an innovative introduction. It is the first attempt for Toshiba to develop smart mobile & PDA phone. Even though failure rate of those products are high. Toshiba puts a lot of resources into promoting itself.
However, the PDA phone market was shared by serval enterprises such as HTC, O2, and Apple (iphone)
Toshiba competitor in mobile market
HTC O2 Apple (iphone)
In addition, Toshiba runs skimming pricing policy obviously. It is difficult for consumers to accept the selling prices. All in all, it is not easy to win in this field
* Growth Stage
Toshiba notebook and its auxiliary product such as USB, memory stick stays at growth stage. Toshiba notebook is one of the most popular brands in the field because sales and competition are increasing quickly. It can cover research and development cost.
Furthermore, notebook strategy decisions focus on growth strategies. For example, new model and technology are developed. There is new model, which has fingerprint function to identify users.
* Maturity Stage
Some of the Toshiba family products are standing at mature stage such as rice-cooker, fan. Sales and competition growth is sloe down since the attraction of those products are decreasing.
Toshiba should consider diverge strategies bringing them into a new impact. There should be product screening, market and consumers analysis to break through the present situation.
8.0 Promotion
In Japan, Toshiba puts more resources into promotion of their products such as mobile phone, notebook and other electronic products. Promotion is a communication channel between Toshiba and consumers. Toshiba utilizes promotion to tell consumers about their existence or new product
In addition, it can also build image and brand loyalty in consumers mind. For example, Toshiba LCD T.V REGZE promotes the enhancement of display. It is a new technology in T.V This promotion not only can tell the consumers that the product exists, but it can also increase Toshiba status and brand loyalty as it is an evaluation of T.V.
* Toshiba Advertising
. Television
2. Website
3. Newspaper and Magazines
4. Spokesmen live promotion
5. Promotion show
Toshiba memory stick promotions show Toshiba promote in broad
* Objective of sales promotion
In June 2007, Toshiba participates in mobile exhibition in Barcelona in order to promote its new PDA phone G900 & smart mobile G500.
Mobile show in Barcelona
* For consumer
This exhibition can make them know Toshiba G900. What is the appeal of G900 and what is the function of G900? Moreover, this exhibition can attract some non-users of Toshiba, so that Toshiba brand loyalty and market share increase.
* For Retailer & Wholesalers
This exhibition can make them know Toshiba G900. If they are interested in G900. They will contact Toshiba to purchase. As a result, it is easy to increase reputation through selling G900.
9.0 Price
Toshiba operates in middle road. The products stand at reasonable price is acceptable in the market. Toshiba sets price will consider some elements including both internal &external factors such as group vision demand and supply situation, economic trend as well as competitor's direction. Then different products may have different pricing approach. Toshiba bases on the following pricing policies for their products
* General Approach
. Cost-Based Approach
A majority of Toshiba products will follow this approach. It is very easy because it bases on simply mark-up on fixed cost plus variable cost.
2. Competition Based approach
Some of the Toshiba products will base on this approach. For example T.V. Notebook.
20.0 Distribution
In different places, Toshiba has different distribution to fit the market. Take an example in Hong Kong. Toshiba used agents to sell lower level sales to explore the mobile market, since there are too many strong competitors in this market such as NOKIA, SONY ERICSSON etc.
Toshiba Distribution channel in Hong Kong (mobile Market)
In Japan, Toshiba will use different channel to contact consumers such as wholesalers, retailers as well as Toshiba itself, so Toshiba can reduce cost by having fewer deliveries and stock taking. Moreover, Toshiba can also communicate with the consumers directly. Then, it can collect customer's feedback to improve products quality.
Toshiba distribution channel in Japan
21.0 Marketing Strategy
* Corporate strategy
Toshiba set great corporative strategy. It clearly defines and achieves enterprise objective. That makes Toshiba run more successful in the global market. Toshiba will focus several programmes. LCD T.V, notebook, so Toshiba will allocate more resources in the field of course. Of course, other progammes such as Household, mobile, business equipment also will be obtain allocated resources to develop.
BCG
Market
Grow
Toshiba Place
Question
Low
High
NO
Star
High
High
YES
Cash cow
High
Low
YES
Dogs
Low
Low
NO
Toshiba has a lot of electronic products. Different products may have different market result. For example, Household products may have large market. However, it grows very slowly as this product may not be always purchased by consumers. They may buy once or twice per year. All in all, Toshiba product market grows steadily.
* Marketing Plan
Toshiba will consider current economic trend since American second mortgage crisis cause fluctuant economy. It creates an unexpected investment opportunity for Toshiba. Toshiba will be made use of SWOT analysis to identify its ability, opportunity and threat. Then Toshiba will base on the unexpected opportunity and analytical result for setting a target.
However, Market segmentation should be created. Then the company will implement action programmes like budgeting control.
22.0 Competitive Marketing Strategy
* Generic Strategy
Toshiba plan a leader position in some markets such as notebook, as its products have competitive advantage which has product and image differentiation, so Toshiba must focus on its product quality, design and price that can approach the market.
* Marketing Strategy
Toshiba must be aware of its market penetration, so that is easy to formulate market and product development for future. Toshiba can use survey to analyze market penetration.
23.0 Global Market
* International Trade system
Japan possesses good relationship with many countries. There is no problem for Toshiba to expect trading.
* Economic Environment
American second mortgage crisis creates unexpected opportunity for Toshiba. Although economic crisis has a negative impact for Toshiba, it still possesses strong industrial infrastructure and distribution network against economic down sloping.
* Political/Legal institution
Japan possesses a stable, legal, tax and fiscal policy. It helps Toshiba to expand and their business.
24.0 International Market Strategy
* Adopted
Toshiba grows in both global and local market.
* Standardized
All Toshiba products are necessary for living and working. Actually, there is no cultural convergence in Toshiba product
Those of the products involve in precise research and development cost of Toshiba. It is hoped that the company can occupy a position in global market.
25.0 Conclusion
Toshiba possesses a lot of competitive advantages such as finance, brand and good market structure as well as management. Toshiba can fully utilize the above advantages including brand, technology advantages. On the other hand, there are also a lot of threats of Toshiba such as economic crisis. Toshiba should consider business direction to avoid the risk and utilize the advantages.
26.0 Recommendation
In the market, Toshiba faces a lot of challenges by internal or external factors such as inflation, cost increasing and competitors. Toshiba should put more resources into research and development as well as promotion. It can generate new technique for producing new products to operate new market.
Moreover, Promotion is also important. Toshiba can consider holding more promotion show, T.V advertising and sponsor famous football team such as English Premier League team, which is the most popular sport programme in the world.
Furthermore, Regular market research must be implemented, so Toshiba can be aware of competitors and trend. It is convenience for Toshiba to arrange new marketing mixed strategy.
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