Title:

STRATEGIC BRAND MANAGEMENT

AN ANALYSIS OF THE SOURCES OF BRAND EQUITY, CURRENT MARKETING PROGRAMMES EMPLOYED AND MEANS TO LEVERAGE BRAND EQUITY FOR

Toyota Motor Company logo, 2008

Executive Summary:

The Toyota Motor Co. Ltd is one of the world’s largest and most popular brands specializing in engineering and manufacturing of automobiles and related products (Toyota – Toyota History, 2006).

The main purpose of this paper is to identify and analyse the factors influencing the brand Toyota and suggesting different alternatives to make the brand even successful all around the globe. The Toyota Brand is famous and familiar among the consumers in a large number of countries in the world and has been a part of their daily lives for more than 60 successful years now. The brand has been successful in attaining the image of ‘high quality and high performance’ due to its consistent and effective marketing performance throughout all these years. As a result, currently, the brand has been able to establish itself efficiently as one of the most popular brand names in the world. To maintain the high image of the brand, the company has always come up with various innovations in its respective business to outperform all its competitors. The paper gives a clear explanation as to how Toyota as brand has been very effective in transforming the normal lives of its existing and potential users into a unique “Toyota Life”.

A detailed analysis of the brand and the elements of its equity in this paper help build very strong integrated marketing communication strategy for Toyota.

Table of Contents:

Introduction:

This Report states the sources of Brand Equity for The Toyota Motor Co. Ltd, investigating the essential factors that help increasing the relevance of brand elements. As the investigation is used by directors and the policy makers of Toyota, the report also includes the synopsis of the company’s current marketing programmes and the means to leverage Brand Equity.

The Toyota Motor Co. Ltd completed 60 years of operations in August 1997 and manufactures one car almost every sixth second. It is by far, the largest Japanese automotive manufacturer and the second largest producer of automobiles in the world. Over the years, it has flourished as one of the leaders in the car market across the globe (Toyota – Toyota History, 2006).

An enhanced development from one of the world's leading weaving machinery manufacturers, Toyoda Automatic Loom Works, was the establishment of The Toyota Motor Co. Ltd (TMC), in 1937, which was founded by Sakichi's son, Kiichiro Toyoda. TMC launched its first small car (SA Model) in the year 1947. The organization has noticed only one strike since its establishment, and has surfaced on its values of mutual trust and reliance, which has been additions to their positive brand image (Toyota – Toyota History, 2006).

Constant improvements in the Production System resulted in the establishment of the 'Toyota Production System’ by Taiichi Ohno and was known as TPS in 1970. TPS is based on the principles of Jidoka (highlighting production problems), Just–in–time and Kaizen (change for the better), which helps in the diminution of inventories and defects in the plants. Toyota also set up overseas production plants, thereby creating trust in their philosophy of providing customers with the required products at all times and forming mutually beneficial long–term relationships with local suppliers. This has generated positive feelings among all its customers. Toyota Production System’s principles underpin their operations across the globe (Toyota – Toyota History, 2006).

Besides manufacturing, Toyota has also embraced the three major car markets of Japan, North America and Europe by establishing a global network of design and ‘'Research and Development' facilities (Toyota – Toyota History, 2006).

Their Business in New Zealand highlights facts of them wanting to meet the motoring needs with their products and services. Toyota’s business objectives in New Zealand are (Toyota – About Toyota NZ, 2006):

  • Ensuring "Customers for Life" by asserting leadership in Customer Satisfaction,
  • Providing superior quality products and services & be a Leader in New Zealand’s car market,
  • Gain mutual prosperity for the Company's shareholder, staff and dealers.

Toyota strives to sustain a strong brand personality by promoting itself as a responsible corporate citizen, gain mutual prosperity by maintaining close relationships with people and organisations in the communities. TMC also passionately participates in their activities such as the Grand American Rolex Sports Car Series and the NASCAR Craftsman Truck Series with assistance from Toyota Racing Development (Toyota – Toyota Motorsports History, 2006 – 2007).

Customer–based Brand Equity:

        ‘Customer–based Brand Equity occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favourable, and unique brand associations in memory’ (Keller, 2003, p. 67).

In certain situations, brand awareness adequately results in more favourable consumer responses. Favourable reaction by consumers to a product promoted by the brand accumulates positive customer–based brand equity for that brand. This helps the company during brand extensions, increase in product prices or during the initiation of a new distribution channel. However, brand equity is formed by the differential responses created by the strength, favourability, and uniqueness of the brand associations (Keller, 2003, p. 67).

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Sources of Brand Equity:

Brand Equity is formed by collective effects of the marketing mix employed in the target markets by the company. Consumers should be able to identify differences among brands in the respective product or service category. Knowledge structures are produced when a high level of brand awareness and strong, favourable, and unique brand associations are created through communications, in the minds of the consumers. Hence, consumer responses and different types of customer–based brand equity are created ...

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