Toyota 1. Product mix (or product assortment) is a set of all products and items offered for sale by a company. A product mix consists of multiple product lines and can be characterized by such parameters as width (number of product lines in a product mix), length (total number of items in a product mix), depth (number of variants in the product line), and consistency (closeness of product lines in terms of production, distribution and use) (Kotler & Keller, 2012). Toyota offers for sale a full line of cars, from family and sportive ones, to minivans and trucks. The product mix of Toyota consists of sedans, coupes, hybrids, vans, SUVs and trucks. The width of Toyota’s product mix is quite substantial. Product line length is a number of different models in a product mix: Prius, Avalon, Corolla, Camry, Lexus, RAV4, Land Cruiser, Tacoma, Tundra, Scion and others. An example of a depth of Toyota’s product mix could be the possible variants of Lexus model (ES300, ES 350, IS Series). 2. Kotler and Keller define six product-mix pricing methods: product-line pricing, optional-feature pricing, captive-product pricing, two-part pricing, by-product pricing, and product-bundling pricing (Kotler & Keller, 2012). An optional-pricing method implies offering optional features, products and services in addition to the main product, with some attributes included in the standard price and others being charged separately. Toyota can implement this type of pricing to its manufacturing process. For instance, the firm could put a standard price for its “mono-spec” Scion and offer a multiple of customization elements at dealerships for a separate price. Toyota can also use product-line pricing method, which suggests asking different prices for different... ... middle of paper ... ...bution model. All of the merchandise is distributed from Spain in only 24 hour in Europe and 48 hours in the US and Asia. All of the stores receive biweekly shipping. However, the idea of the model is to deliver only the minimum volumes per each item type or category. This way – very little storage is needed in the stores. Such approach makes the consumers coming to the shops more often, which leads to up to 85 percent of the goods sold at full prices. Facilitating functions are those which make the process easier for both, the manufacturer and consumers. Zara is a proud owner of 90 percent of its stores in brick and mortar, located mostly in popular and dense traffic locations, which is meant to be an efficient advertisement technique. Bibliography: Kotler, P., & Keller, K. (2012). A Framework for Marketing Management (Fifth ed.). Harlow: Pearson Education Limited.
Toyota recently announced it seeks to become a much more efficient and effective automobile manufacturer in the extremely competitive automobile industry. This particular
Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Coruña, Spain; a city which eventually became the central headquarters for Zara’s global operations. Since then they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice. These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. These three goals helped to shape Zara’s current business model.
Jobber,D & Ellis-Chadwick, F (2012). Principles and Practices Of Marketing. 7th ed. : McGraw Hill Higher Education. p19-21 & 352-354.
Amazon creates value for its customers by offering customer satisfactory services by managing retail operations with efficient use of technology. Operational efficiency is the strength of Amazon.com and supports the management to maintain its competitive advantage and enhance corporate performance.
The marketing mix is primarily made up of four variables, and they are product, place, price, and promotion. These variables are often referred to as the four P's. Many sources often describe the marketing mix as a recipe used in developing a viable marketing strategy, with each ingredient being used different ways and at different times based on the product or service one is trying to market. This paper will utilize three sources to describe the elements of the marketing mix. It will also describe how each one of the four elements of the marketing mix impacts the development of an organization's marketing strategy and tactics.
b) Zara can focus on expanding and increasing the number of outlets in Asian countries such as China and India. The scope of development is very high and the demand for fashionable clothes is increasing at a very fast rate. But it will have to focus on other local competitors who provides the latest fashion at a cheaper rate. As Zara is a known brand, so it would be easy to increase awareness among the consumers through advertisement, promotions and celeb endorsements.
The fundamental business strategy of Zara is very simple which is linking customer demand to manufacturing, and liking manufacturing to distribution. Zara has been running their business in fashion industry which is susceptible to seasons and quick changing customer tastes. Zara has been approached to and considered their business as a perishable commodity business just like a fresh baked cake or bread to be consumed quickly.
According to Toyota, they have undertaken a manufacturing revolution that has fundamentally changed established practices; all the way back to the product development and design. They have done this by integrating four areas: design, production engineering, procurement, and component supply. They have achieved higher quality at lower costs by creating standardized, multipurpose components. Also the reduction in cost has heightened the value and fortifies the competitiveness of product. To do this, Toyota has required intensive coordination with its suppliers. Another factor of their Integrated Low Cost is that Toyota steadily feeds cost improvements back into the product to raise their value along with the fact that four Toyota’s seven corporate auditors are outside corporate auditors.
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill.
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
2.4 Segmentation: Some of the important bases for segmenting consumer markets are Demographic, Geographic, benefits, Psychographic and Usage rate segmentation. Geographic segmentation is the priority of Zara. It is a global brand and its supply chain management is very much perfect. It helps Zara in getting the latest trends into stores in three weeks’ time, based on consumer preferences. It’s a Spanish brand, so it would be a better option for Zara to open more stores in European countries.
In order for a retail company, like Zara to produce good sales results it is dependent on the level of stock on hand. If Zara has too much inventory in a given store it can slow the stores cash flow as well as reduce profit due to markdowns. Therefore, excellent inventory control is of high importance to Zara in order to realize sales targets. Studying the open-to-buy has allowed me to realize it’s tremendous importance as well as usefulness for a buyer. As one of the two major tools of merchandise planning, the open-to-buy plan is used by many retailers today as an inventory management tool, in order to determine the quantity of inventory that needs to be bought. This is generally done on a monthly basis in order to reach revenue projections.
Toyota Motor Corporation is a very successful automobile manufacturer that is recognized globally. They have continued to obtain and retain a competitive advantage over their counterparts, despite recalls over many years. Regardless of recalls, Toyota has been quick to rectify their shortcomings and continue to lead within the automotive industry with their innovative measures. In this essay, I will discuss key internal factors for Toyota. Within those factors will include Toyota’s core competencies, which are what they do really well in comparison to their competition, three of their strength’s, which will include their posture within the automobile market and their heavy focus on research and development, and two of their
Toyota seeks to revitalize their venture spirit by reforming their consciousness in light of the Global Vision through other efforts. Toyota Company has mostly focusing on the areas of development, design and procurement. As an example Toyota has been creating innovative synthesis of development and design through a new car making policy building better cars. By introducing different cars that meet local needs in rapidly growing emerging markets, the executive seeks on an increase in the share of Toyota global sales made up by emerging
The basic function of retail is to provide the right goods at right place to right consumers at right time. The marketing tools that a retail organisation uses to pursue its marketing objectives are termed as marketing mix.