Toyota is one of the global’s biggest vehicle manufacturers. The multinational Japanese automobile company has developed numerous marketable brands in different geographic locations (Wada, 2020). The company has been manufacturing vehicles for almost a century, but it must strive to explore new markets and maintain the available ones. The company’s principles of operations and marketing strategies have shown it to rise as one of the US-preferred vehicle manufacturers (Wada, 2020). Since the company operates globally, it must adopt different measures in different locations. The company has capitalized on strengths and opportunities while addressing weaknesses and avoiding threats. It has competed effectively with American companies such as General Motors and Ford because of its economies of scale (Wada, 2020). In this essay, the focus will be on how the company is marketing the Toyota Sienna, one of the company’s brands in the United States. Disruptive marketing will provide new insight into how the company can expand and sustain the US market.
Disruptive Brand Plan
Disruptive marketing is a new strategy for improving the marketing of brands. The strategy focuses on adoption and novelty, where consumers can access and use the product more efficiently, and marketers offer the product uniquely (Cooke, 2021). Besides, the strategy is robust because it raises curiosity and is never duplicated. It allows the marketer to explore and recommend strategies for accessing potential customers. Toyota Company remains one of the leading companies manufacturing vehicles and having access to global markets. The 2023 Toyota Sienna is a company brand that requires disruptive marketing in the North American market (Timbario et al., 2023). This paper emphasizes the disruptive marketing plan Toyota should use to curb competition, appeal to potential buyers, and sustain existing ones. The products appeal to men; therefore, disruptive marketing should make the product appeal to both men and women, without men feeling that Toyota Sienna has become a feminine product.
Toyota Sienna brand needs to target unisex customers without the product being branded as feminine or masculine cars. The product needs to be family-friendly, with adverts portraying families on vacation or friends taking road trips. Toyota Sienna hybrid car should also appeal to environmentally conscious customers, who feel they must directly participate in reducing global warming and climate change. The plan also intends to incorporate the features of sports cars, selling at affordable prices. Therefore, Toyota Sienna would seek to break the norm of developing sports and green vehicles that are affordable to most consumers (Toyota, 2023). Besides the marketing platforms would also be social media, where most families use e-commerce. For instance, advertising on Amazon’s page would be a peculiar strategy for accessing online consumers.
The 4Ps marketing mix involves the creation of marketing messages by appealing to place, price, Promotion, and people. According to Lahtinen et al. (2020), the marketing mix increases the interdependence between the 4Ps, making it easier for the marketer to realize that one activity is missing. Implementing a marketing mix depends on the target consumers, emphasizing features of such markets, such as values, interests, lifestyles, geographical locations, and demographic factors (Lahtinen et al., 2020). Customer values still play a significant role in influencing the implementation of the marketing mix. The primary determinant of a purchase decision is customer value, especially the product’s ability to satisfy the consumer’s interest (Lahtinen et al., 2020). In this case, values include speed, environmental sustainability, class, or durability. The marketing mix should identify the value of each market segment and fulfill such expectations.
The product in this marketing mix theory is Toyota Sienna, which presents various features. The product’s interior design has a comprehensive dashboard, stainless steel appliances, clearly labeled buttons, and uniquely stitched seats (Toyota, 2023). Besides, the product displays such as sporty styling, appealing to consumers who value sporting vehicles; premium exterior with unmistakable silhouette design; and sleek appearance with dark chrome accents on front headlights (Toyota, 2023). External and internal appearances make the product attractive to consumers’ values and needs.
The product’s prices differ depending on the type and the location. Since this assessment focuses on the North American market, the company’s website offers a reliable source for pricing. 2023 Toyota LE costs approximately $36,135, XLE costs $41,445, woodland edition 2023 costs $46,945, and 25th Anniversary Edition costs $47,420 (Toyota, 2023). The necessary change is introducing a value-based pricing strategy, where products with higher values are charged higher than those with minimum values. Besides, psychological selling would work. For example, lowering the cost of the Anniversary edition to $46999 will attract the Woodland edition’s consumers because the features and values of the former are numerous.
The product focuses on reaching numerous consumers across the United States. Currently, the company has distribution centers in Princeton and Lafayette. The company also partners with other organizations to facilitate distribution. They include Habitat for Humanity of Gibson County, the YMCA of Southwestern Indiana, and other organizations facilitating distribution and offering expertise in environment and safety drives (Toyota, 2023). However, new changes should focus on reaching online consumers and selling through online platforms such as Amazon and eBay. The company has been reluctant to use such contemporary opportunities to reach potential local and international consumers who want to order motor vehicles online. Although the company has online portals for e-commerce, e-commerce companies have millions of subscribers that can offer increased market opportunities for the Toyota Sienna.
Promotion / Communications
Promotion involves informing, persuading, and influencing consumer decisions. Promotion strategies include personal selling, advertisement, sales promotion, and publicity (Yasa et al., 2020). Toyota is majorly using advertisement as the primary method of Promotion. However, the company should embrace publicity and take advantage of growing concerns over climate change and the desire for green products. For instance, the company should take advantage of the United Nations’ annual conferences discussing climate change progresses. Since Toyota Sienna is one of the green vehicles, it should participate in such conferences and gain publicity. Several potential consumers attending and watching the conference will be able to learn more about the brand.
Market Segments – Current Target Market
The current target market is middle-class consumers who prefer sports and environmentally-conscious cars. However, implementing disruptive marketing will increase the targeted markets to women, families, and generations X, Y, and Z. Initially, sports cars were mainly associated with men, but today sports are becoming more popular among women. The color and design of the Toyota Sienna should also favor women who are passionate about class and sports cars. Including Generation X and Z would be possible when the message of environmentally conscious products is communicated (Toyota, 2023). The brand will design messages and use various media to access its diverse target markets.
New Primary and New Secondary Target Market
The new segments that Toyota should focus on are women passionate about sports vehicles and small families with middle income. Small families with two to three children will find the car favorable. The targeted women should be conscious of environmental factors and passionate about sports cars (Kedves, 2023). The two categories of consumers will also show different segmentation methods: psychographic, technographic, geographic, and demographic. Demographically, the targeted market will be women and young families. Toyota Sienna is not popular among women; however, the company should design the brand to appeal to women passionate about sports. Initially, sports were associated with men, but the narrative changed, and women took leading roles in sports. Young women passionate about sports are a market that Toyota has failed to explore (Kedves, 2023). Families going for trips or long travels need an executive car. The option of Sinna is the best. The geographic segmentation entails the market within the United States. Although Toyota has global market operations, in this case, the market targeted is the United States (Kedves, 2023). Technographic segmentation is the technological interest of the market. Many targeted customers are Generation X, Y, and Z, passionate about technology and very conversant with contemporary technological operations. Therefore, the marketing tools and strategies will emphasize technological usage. The third segmentation method is psychographic segmentation, where psychographic features such as motivations and beliefs form the central aspect of operations (Kedves, 2023). In this case, the psychographic features of the targeted consumers are environmentally conscious and passionate about achievements. The final segmentation is behavioral factors such as consumption habits. The targeted market has spending habits of the targeted market include buying socially responsible brands, shopping, traveling, and debt services.
New Primary Target Market
The new target market that this product should focus on is the unexploited section of young women passionate about sports the overall size of this new opportunity is approximately 76 million people (Starr et al., 2022). According to US Labor of Statistics, approximately 76 million young women in the United States are employed (Starr et al., 2022). This young population has different behavioral and psychological factors, which make them outstanding and unique. They are changing their perception of sports and environmental degradation (Starr et al., 2022). They are also passionate about socially responsible products. In this case, the target population is also young, loves technology, and spends most of their time traveling and exploring new opportunities. Toyota Sienna should be their brand.
New Secondary Target Market
The second new target market this product should focus on is young families with less than three children; the overall size of this new opportunity is about ten million. The US Census Bureau reveals that about ten million families are one-parent and small, with fewer than three children (Starr et al., 2022). The families are also young, sharing the concern over the sustainability of the products and the comfort of their families. The target of these customers is to increase sales to young families not currently consuming the product.
Demographic & Economic Trends
Numerous changes have characterized the US automobile industry, including the emergence of technologies and the focus on customer needs. The industry has the opportunity for fundamental restructuring, especially shifting from a technological product to a social product. The company’s interests have shifted to serving individual needs rather than being a technical product serving consumers. The trends that inform disruptive marketing strategies include user-centric products, the rise of green economic demands, changes in the automobile value chain, and shifting markets (Bulturbayevich & Jurayevich, 2020). Such trends will affect the industry in the future.
Autonomous and electrified vehicles are becoming popular in the world. Many companies are shifting their operations and embracing less toxic operations (Bulturbayevich & Jurayevich, 2020). the popularity of electric vehicles is that they will remit fewer exhaust fumes, will take less personal time, will be more accessible because consumers do not require driving licenses, and the affordability will also increase (Bulturbayevich & Jurayevich, 2020). Electric vehicles address the sustainability issue and consumers’ inability to gain driving knowledge. Autonomous and electric cars will be autonomous with regular annual updates. The introduction of autonomous vehicles will have diverse external factors, including changes in mobility habits. People will travel more often, many kilometers will be covered, and the number of products will increase. People who own vehicles will rise because of low costs and less purchase expenses.
An additional trend is the focus on the user’s interest. Producers are becoming customer-centric, with most developments emphasizing product customization. The US market of young and technically savvy consumers has specific features that marketers will emphasize when developing the product. Most importantly, digital technology and innovative mobility will be central to productivity. There is a change in perception of car ownership, especially among the young generation, who have been seeking alternative transport systems rather than private car ownership. The infrastructure in rural areas is not advanced, compelling residents to resort to private car ownership. Besides, the mobility attitude determines car ownership, with customers open to new mobility means of operations. In many cities, public transport plays a crucial role. Generally, there are notable changes in car ownership. Instead of owning cars, people appreciate sharing through online sharing agencies, drivers offering private journeys, and taxi companies offering app services. Traditional communities and conservative individuals still believe that car ownership is a source of pride; the market is changing, and consumers are resorting to car-sharing services. Therefore, Toyota’s products should be designed to fit the changing consumer trends.
Sustainable manufacturing is one of the growing trends in the automobile industry. Green practices have become central concepts in the operations of vehicles. They have even affected consumer behavior and habits among the young and millennials. Environmentally conscious buyers are central to the automobile industry, compelling manufacturers to undertake achievable operations (Bulturbayevich & Jurayevich, 2020). manufacturers are developing superior fuel-efficient engines by recycling and extending the lifespan of vehicle parts. Achieving sustainable principles would result in more market opportunities for the company.
Analyzing the Consumer Market
Customer-centeredness emphasizes on belief and orientation of consumer perceptions, with the emphasis being on controlling the competitive market. The automobile industry consists of consumers with different beliefs that affect their social contexts and determine their consumer behaviors. Even though manufacturers have no control over social factors, understanding their needs is essential to the success of sales. Consumer behaviors entail mental and emotional activities to satisfy consumer needs during buying (Kumar et al., 2021). Examples of social factors include reference groups, social status, and family (Kumar et al., 2021). These three social factors may operate in tandem or individually.
First, people make purchase decisions based on reference groups. These groups include influential people in brand selection, including social organizations, friends, family members, and professional organizations (Kumar et al., 2021). For example, college professors might have specific brands of vehicles different from what their students purchase. In such cases, the decision by one professor would be influenced by the trend among other professors. Opinion leaders, who are influencers in certain social groups, affect consumer behaviors more. Opinion leaders assume higher influential positions because of their achievements, personality traits, intelligence, and other factors. They influence consumer behaviors within reference groups.
Family is a social factor that influences consumer decisions. The family remains the basic structure of a community that determines the decisions that one makes (Kumar et al., 2021). For example, Christian families should make decisions based on Christian values. The community and family stability depend on family senses and norms. Apart from the family being the smallest community unit, it is also an economic unit. Families with sufficient wealth have higher purchasing power than those with minimal income. Therefore, family is a major influence on consumer behavior.
Social status influences what one buys. Behaviors, roles, and positions have different societal dignities (Kumar et al., 2021). People strive to make decisions that concur with their dignity in society (Kumar et al., 2021). The car’s characteristics will influence consumers’ social status and dignity perception. Some characteristics include safety, model, color, fuel consumption, and price. Safety features such as fog lights, anti-lock brake systems, reverse sensors, and other factors influence purchase decisions (Kumar et al., 2021). Price and the model remain critical factors in purchase decisions, with certain consumers associating higher prices with luxury, while different models have technical differences. Colors have psychological power in influencing consumers’ purchase decisions and are associated with gender factors. Engine fuel consumption determines purchase decisions because it determines sustenance costs. The physical features of car brands usually determine the social status of a buyer.
Consumer decisions do not depend on rational decisions; a subconscious mindset is important in decision-making. Consumers sometimes assume product quality and focus on perceptions and others’ opinions (Chu et al., 2019). Consumers mimic psychological desires and reorient the mimicked desires with their mental understanding (Chu et al., 2019). Psychological factors include irrational decision-making, motivation, perception, and attributes (Chu et al., 2019). Motivation in decision-making is based on Maslow’s theory of motivation. Consumers will purchase the car based on the need to be satisfied; for instance, self-actualization and esteem needs can be satisfied by purchasing the car. Customer perception is how the consumers feel about the products. Critical issues affecting customer perceptions include reviews from other consumers, marketing strategies, the quality of customer support, and the company’s values. In this case, perceptions will include consumers’ values of Toyota Company, especially on the issues of environmental degradation (Chu et al., 2019). The identification of consumer perception is on the online mentions, especially the number of cases the consumers discuss the product. Another psychological factor is the product’s attributes and attitudes towards such attributes (Chu et al., 2019). The attitude is the favorableness or unfavorableness of the product by the consumer, especially based on the ability of the product to satisfy value perception. Beliefs, feelings, and behavioral intentions affect attitude toward the product (Chu et al., 2019). The roles of attitude in customer selection are defensive ego function, knowledge functions, and value expression. These psychological functions determine consumer decisions without the involvement of cognitive analysis. They are critical in assessing the needs of buyers.
Toyota Sienna is a car for the future; the car intends to satisfy future consumer needs. Consumer needs are dynamic, and the car must be prepared to satisfy them. In this case, the car is shifting from travel to safety needs. The car is more than a machine for moving around with the family. It focuses on airbags, reinforced bars, and sturdy vehicles, which limits the chances of accidents. Additionally, the car has focused on comfort and performance needs, including air conditioners, spacious interior, durability, and lower maintenance costs, which are factors we consider in the buying process. Consumer needs have also shifted to experiential needs, including smart devices and digital technology in the car. Technological advancements such as touch technologies and parking assistance are needs that Toyota Sienna satisfies. The latest concept is the satisfaction of environmental needs, such as minimal pollution and environmental sustainability. Companies are rushing to serve the changing market perceptions, especially satisfying the needs of young consumers. Many young buyers are more concerned about the environment. Since economic power is shifting to young consumers, the need to satisfy environmental needs is growing.
The new positioning statement for this brand is that for consumers seeking an environmentally friendly car suitable for small families and sports enthusiasts, Toyota Sienna is the car you always wish you had.
|Criteria for Comparison||Your BRAND||Your BRAND After This New Disruptive Idea is Launched||Competitor # 1 – the name of the brand|
|Price – MSRP Range||$35000- $60000||$40,000-$60000||Chrysler Pacifica|
|Product Unique Attributes||Sporty styling, sleek appearance, hybrid performance, and digital rearview mirror||Automatic-driven car, sporty, stylish, and environmentally conservative features||Frugal hybrid, comfort, high-tech interior, and perfect touring car|
|Placement – points of distribution||Toyota Sienna is located in different areas, including North America, as the main market. The product is also popular in Japan and Asian countries.||The target market is in North America, especially the United States||The market is in North America, especially in Canada|
|Promotion – where / how do they advertise||Social media platforms, storytelling, mainstream media, and promotions||Mainstream media, sales promotion, social media, and public relations||Mainstream media, advertisement in social media, and publicity|
|Other Items of Comparison (replace with YOUR comparison point)||Honda Odyssey and Chrysler Pacifica||Tesla Model S, Nissan Leaf, and Renault Zoe||2022 Honda Odyssey and Kia Sedona|
The main competitors in this market are the Honda Odyssey and Chrysler Pacifica, which produce similar brands of cars. Outcompeting the two brands is important for survival within the US market, where all the products share. Many car manufacturers prioritize changing the automobile industry, especially the change in how to undertake business operations and give consumers the best and most effective products. First, Toyota Sienna can outcompete the competitors through customer-centric operations, especially focusing on changing consumer needs. Technological advancements such as chatbots and augmented reality are crucial concepts in the modern automobile industry (Chu et al., 2019). The second strategy is the introduction of partnerships and networking to increase customer accessibility. For instance, car manufacturers can partner with mobility companies to improve the quality of cars manufactured for similar purposes. Additionally, the improvement in manufacturing excellence is critical in the improvement of car operations. Advanced manufacturing strategies are crucial in increasing customer satisfaction (Sarvankar & Yewale, 2019). Therefore, Toyota Company should have measures to improve the quality of services that the company offers. Brand differentiation and the focus on marketing niche are crucial aspects of competition. In this case, the best costs strategy can work since the prices in the market fluctuate.
Market Research Plans
The market research intends to determine appropriate market demands to help develop promotional plans. In this case, the target market will be cities in the United States. The business’s success depends on the effectiveness of market research because research determines consumer needs and values. Five procedures will guide marketing research, each step having a critical function. First, a comprehensive situation analysis will be done, especially a SWOT analysis of the company (Sarvankar & Yewale, 2019). Understanding Toyota Company in the United States will be beneficial in identifying competitors’ weaknesses. The analysis will also involve an assessment of the industry to identify areas that require further improvements. The second step would be the development of clear market objectives (Nunan et al., 2020). The market objectives are the marketing plan’s desired outcome. In this case, the objectives will be to increase sales of the Toyota Sienna by 5% annually, increase the market share to include families in rural areas, and identify the potential market the company has not explored. Identifying market needs is crucial during objectives determination.
The subsequent stages are creating financial plans, determining the target audience, and listing research methods. Financial plans are critical in creating a solid marketing plan (Nunan et al., 2020). The operation of any business relies on financial resources, including the cost of research and basic operations expenses. The cost of research would include payment to researchers, access to resources, and cost of analysis and transport. Since the target area is the whole of the United States, the available resources might need to be increased to serve such needs. Therefore, six identified cities and states will include New York, Chicago, Miami, Washington, Alaska, and Florida. The expenses of travel will be part of this plan. Determination of the target audience is the next step. Toyota Sienna has most of its customers from the working class. However, this disruptive marketing strategy focuses on how it can appeal to young women and men. Since this audience is techno-survey and conversant with technology, the product must meet their expectations. Finally, the research methods will include interviews and surveys. Interviews will be administered to participants willing to have their time for data collection, while long-distance participants will have online surveys (Nunan et al., 2020). Surveys are advantageous because they allow participants to complete questionnaires in their free time. Market research will be crucial in creating strategies for the progress of the company’s marketing strategies.
Promotional planning is necessary for launching a new product or marketing an existing product or service. Promotional planning intends to ensure that the product reaches the target audience, the audience understands the message, and the message stimulates the audience to take action. The first step in the promotion plan will be setting the objective for the product, which includes the need to increase sales and expand market coverage (McKenzie et al., 2022). The next step will be the definition of the target market. The targeted market includes young families and women who are sports enthusiasts. This is the population of the targeted market that has yet to be explored by the company. The development of the Toyota Sienna is a progressive strategy for attracting and retaining such consumers. Next, the company should develop a marketing message that should be simple and persuasive (McKenzie et al., 2022). The selection of a communication channel would be the next procedure. The selected channels should be popular among the targeted customers. In this case, the targeted customers prefer social media and the Internet. They are also consumers of television products. Examples of channels include Promotion, advertising, and sales incentives. The next step will be the development of a promotion budget; the budget should include administrative requirements and logistics. The budget will be essential in assessing returns on investments. The campaign effectiveness and legal issues will also form part of the assessment; marketers must ensure the plan meets government policies and legal requirements.
Toyota Company is applying digital marketing strategies in its promotions. Apart from traditional advertising methods, the company has resorted to various marketing strategies to meet the changing consumer demands. First, it uses short branded video clips to advertise its brands. The advantage of short-branded products is that to fit better with the consumers’ shrinking attention span. Consumers are busy and lack time to watch long video clips—the short clips and also economical and graspable. Social media monitoring is also a common marketing strategy. Assessing social media’s performance, especially the performance rates, is critical in this company (Hackley & Hackley, 2021). Besides, the company uses Pinterest accounts to improve brand appeal and humanize the company. Having photos of community events and behind the scene activities engages consumers and makes them identify with the company.
However, the company should advance its social media marketing strategies. Many targeted consumers, especially young women, and families, often use social media; creating messages for such audiences will increase the chances of reaching the target market (Hackley & Hackley, 2021). Therefore, recommended marketing strategies will include using chatbots, allowing consumers to share their personal experiences, and creating a community for the audience. Chatbots powered by artificial intelligence create a platform for interaction and increase the chances of engaging potential customers (Hackley & Hackley, 2021). Chatbots can integrate different social media platforms and communicate with clients by taking orders from Facebook messages, integrating major payment systems, and answering customer questions. Social media marketing should also focus on creating a consumer experience. For instance, customers who share their experiences with the company have higher chances of creating a loyal fan base. Additionally, content marketing strategy should include high-quality SEO and help attract an organic audience. Creating a community of audience should be another strategy, where consumers feel that the company is part of their life (Hackley & Hackley, 2021). The company should not behave like a robot but share emotions and connections with the targeted audience. Therefore, Toyota Sienna’s social media pages should have AI-powered chatbots, create a community of audience, and allow consumers to share their personal experiences.
Publicity is one strategy for limiting direct advertisement costs. Promotional costs might be high, affecting effective business operations. Therefore, the company must find programs to attract media attention without paying the press. First, the company needs to organize crowdfunding to support charities in the United States (Hackley & Hackley, 2021). Investors, philanthropists, and potential consumers will share the idea and offer support. Besides offering support, crowdfunding help the company gains traffic and have airtime in media houses. Since different human challenges affect the United States, focusing on crowdfunding will create an opportunity for media coverage (Hackley & Hackley, 2021). For instance, Toyota Sienna should organize crowdfunding and donation for asylum seekers who cannot access quality health services. Supporting the vulnerable is a way of getting coverage and increasing traffic in social media and mainstream media.
The second publicity strategy should be organizing racing events to show how the car fits different environments. Toyota Sienna needs to appeal to consumers in different parts of the world. Most importantly, it is designed to fit different terrains and weather conditions. The company should organize the annual racing event, where different models will compete to reveal the brand’s strength. Car racing events will attract the media and online followers, increasing the possibility of buying.
Advertising will also use different traditional marketing methods. First, the company will use handouts to reach potential consumers. Handouts are brochures and flyers that promote business (Hackley & Hackley, 2021). The use of flyers will be in different events or shows. Handouts will have information about the vehicle’s specs and the brand’s modernization. It is important because potential consumers will store these handouts for reference at convenient times. The second marketing channel will be the billboard. Billboards will be erected on major highways in the United States, revealing the quality of the Toyota Sienna (Hackley & Hackley, 2021). The photos of the car will form the largest part of the billboard, with other sections left for short information about the product. Billboards are encouraged because they are available for consumer reference at any moment one passes along the road. The third marketing channel will be direct mail. Potential consumers and previous buyers will receive regular email addresses on the product and the engineering teams’ improvements to increase the product’s efficiency. Direct email can be an emotional marketing tool that appeals to buyers to consume the product (Hackley & Hackley, 2021). Potential consumers will be free to block the emails or continue receiving them. A print advertisement will also be part of the advertisement. Some consumers prefer magazines and newspapers. Apart from the company having a magazine, it will advertise in newspapers. Broadcasting will be another marketing strategy. Broadcasting includes both radio and television, especially advertising during primetime. Although traditional media costs are expensive, diversification of advertisements to include both digital and traditional media is crucial. It increases the chances of different buyers getting to know about the product.
Financial Viability of Plan
An introduction of any activity in the organization should be based on the decision’s financial viability. Disruptive marketing should have possible financial benefits and increased profitability. Introducing less profitable operations might lead to an organization’s failure because of increased expenses. In this case, the company should invest a lot of money in sales promotion and other marketing strategies. Assessing the profitability and financial viability of the disruption measures will be based on the break-even-analysis method.
Break-even analysis is a financial analysis method that determines the point of a product’s profitability (Sintha, 2020). Although Toyota Sienna has been operational for some months, an increase in marketing will have additional expenses for the company. The company needs to determine when its investments in advertising will have positive effects. The break-even analysis model is based on the theory that there is a minimum product level where the venture makes no profit or loss (Sintha, 2020). The fluctuation of variable and fixed costs determines the break-even analysis. Introducing disruptive marketing strategies will compel the company to better price its products, determine missing expenses, set revenue targets, and cover fixed costs.
The break-even analysis formula is the fixed cost ratio to the difference between average price and variable costs. In the case of the Toyota Sienna, the fixed costs include testing prototypes, maintaining facilities, and salaries to employees (Sintha, 2020). The variable costs will be advertisement costs, research, and sales tax. The average price of the car after disruptive marketing will be about $45,000. The company makes sales of about 100,000 cars in the United States within one year, fixed price of about $80,000while the variable costs will be approximately $ 1 million. Therefore, the break-even point will be a total fixed cost of (80,000×100,000)₌ $8,000,000,000/ (4,500,000,000-1,000,000) ₌ 8,000,000,000÷4,499,000,000₌ 1.78. The company will realize profits for sales above two units of cars. Therefore, the initiative is financially viable.
The company needs a large customer base, with consumers loyal to its products. The disruptive marketing measures will ensure the company develops sustainable consumer relationships. Toyota Company will employ different strategies to develop relationships with its consumers. First, it will offer customer-centric services, including product customization (Steinhoff et al., 2019). Excellent customer service is critical to relationship marketing because consumers will return or refer other buyers. A sales representative will be trained to remain polite even on the site of rogue customers; protecting the image and displaying professionalism are critical operations measures (Steinhoff et al., 2019). The second strategy will be customers’ engagement in promoting brand values and ensuring they become part of the organization. The company will be an industry leader passionate about customers’ needs. The engagement could also be through diversification of communication channels and linking such channels to social media platforms. Increased advertisement will increase engagement because the customer sees the product on different platforms. Besides, the company will have affiliate tracking software that assesses customer journeys. The software offers advanced analytics, helping in tracking customer journeys. Understanding customer journeys allows marketers to predict future market trends. The company has also focused on social media and e-mail marketing. The constant connection between customers and the company increases the chances of loyalty. For instance, when the company shares social media posts and responds to customers’ comments, there is a higher chance that the company will have loyal consumers (Steinhoff et al., 2019). Finally, Toyota will develop loyalty programs to make loyal customers feel special. For instance, car consumers will get additional accessories, such as road signs, for free. Another critical issue is rewarding loyal consumers through schemes and annual awards. These awards will make customers more attached to the company, influence them to demand better services, and ensure consumers refer others to purchase such products.
Socially Responsible Marketing
Companies adopt socially responsible marketing strategies when considering their impacts on the environment and society at large. Toyota Company should show responsibility to its customers and stakeholders by protecting them from vice. First, the company should be environmentally responsible in its marketing (Steinhoff et al., 2019). Cases of environmental pollution and increased global warming are becoming a threat to society. Since most polluters are from the automobile industry, the company should be an ambassador of a clean environment, especially in its advertisement messages. The second responsibility would be philanthropy (He & Harris, 2020). Toyota has supported various programs in the United States; the company needs to recognize and identify such philanthropic activities during public relations events. Apart from focusing on profit generation, the company must prioritize charitable causes in its endeavors. Additionally, the company should be ethically responsible by avoiding misleading advertisements and using children for adverts without the consent of their parents (He & Harris, 2020). Economic responsibility should also guide the company. Since the company’s focus is profit generation, it should not charge higher prices or evade taxes. The advertisement cost should be distributed within the company because the company enjoys economies of trade (He & Harris, 2020). Performing socially responsible marketing will increase customer loyalty, minimize costs on legal procedures, and increase the organization’s profitability.
Christian Integration for Brand
Delivering Christian values to the brand requires certain changes in its operations. First, the company needs to change its core values of business. These values, attitudes, and beliefs will be crucial in changing the company’s image (Zehra & Minton, 2020). For instance, the organization will have monthly prayer meetings in all its branches globally. The values will also be instilled in marketing and customer services, focusing on customer loyalty and satisfaction. Next, the company should incorporate Christian values in its business operations. Christian values, in this case, would include love, loyalty, forgiveness, and contentment (Zehra & Minton, 2020). Employees would be trained to observe and use such values when serving consumers. The company should display such values in marketing and other operations.
As a new manager, I will employ various measures to improve the brand and make the Toyota Sienna one of the leading products in the automobile industry. The company’s vision would be redefined to meet Christian expectations and interests (Zehra & Minton, 2020). The tone, values, and personality of employees should display Christian values. Next, the market research will focus on competitors’ brands and their brand strategies. Understanding competitors is the first stage in developing a competitive product. Brand positioning will be possible after the identification of competitor brands. A consistent visual identity of the product will be developed and used as the brand’s image (Zehra & Minton, 2020). The product designers are to be engaged in developing a consistent visual image for the product. After developing the product to meet consumers’ expectations, the product will be linked to social media influencers. Influencers are individuals and celebrities with large social media following; using them as brand ambassadors increase the chances of sales increase. Influencers will mention the car in social media posts or promote it using short promo videos.
Social media and the brand’s credibility will lead to positive brand development. When the organization and the brand have positive credibility in the eye of the customers, the potential for the company’s success increases (Zehra & Minton, 2020). The credibility development will be based on its ability to meet consumer expectations and compliance with societal expectations. Social media presence also makes the brand outstanding because most consumers are linked through social media. Besides using social media, the company should capitalize on search engine optimization (Zehra & Minton, 2020). Ensuring the company’s website page appears first in web searches is critical. Engaging stakeholders and integrating branding strategies will be critical. Branding strategies will be incorporated into the overall company strategies, limiting the chances of conflicts. Every stakeholder, within and outside the company, will be part of the company’s branding procedures. Ensuring that the brand remains outstanding and unique are some critical factors in branding.
The introduction of the Toyota Sienna brand by Toyota Company reflects progress by Toyota in increasing its share in the American market. The assessment of the product based on the 4Ps marketing mix shows that the brand needs further improvements. The target market includes young women who are sports enthusiasts and young families who would wish to take family trips. The demographic and economic trends that make the brand more appealing are the increased awareness of climate change, the introduction of autonomous cars, and the changing perception of women towards sports. Social and economic factors make the product more appealing. Therefore, the development of the Toyota Sienna will require effective product positioning, marketing research, promotional plans, and the financial viability of the marketing strategy. Changes in the brand to incorporate Christian values are an important step in the product’s success.
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