Introduction

Success of any car by an automobile company can be measured in terms of customer satisfaction, car price, fuel efficiency, driving safety, car attraction by look, and number of units that manufacturing company sale in a year. Toyota fits in above all measurement criteria by making Toyota Corolla as world’s most popular and best-selling car.

Most Successful Car: Toyota Corolla

 

 

 

 

 

 

About Company

• Toyota was founded in August 28^th, 1937 by Kiichiro Toyoda and it’s headquarter is in Toyota, Aichi, Japan.

• Toyota is the world’s market leader in sales of hybrid electric vehicles and adopted mass market adoption of hybrid vehicles across the globe.
• Toyota has good corporate structure which consist 364,445 employees all around the world

Historical sales of Toyota Corolla by Company

• . Company introduced first corolla in 1966 and report says that there were more than 3,000 cars were being exported every month all around the world from 1968.
• The success of this car started in American market where Corolla was introduced in 1968 with the selling price of USD $1,800 and sales grew at a rapid pace and Corolla was on the way to become “The People’s Car” for the world.
• A report says that, Toyota has sold 1.2 million Corollas in 2013 all round the world by 5% year to year growth in sales and since Corolla’s introduction in Japan (1966) and U.S.A.
• Toyota has sold out more than 40.7 million Corollas all around the world which is considered as more than any other car model sales.

Major Competitors of Toyota Corolla

1. Chevrolet Cruse
2. Ford Focus
3. Honda Civic
4. Mazda MAZDA3
5. Volkswagen Jetta
6. Others market leaders in automobile industry such as Honda, Dodge, Hyundai, General Motors, Nissan, Ford, Suzuki, Renault, BMW, Fiat, Kia

Modified or Original Product

First Toyota Corolla was introduced in 1966 for Japanese market and become most selling and successful car all around the world due to continuous modification done by manufacturer – Toyota Motor Corporation.

Modification In terms of –

• Fuel efficiency
• Price
• Features
• Attractive look

Reasons Behind Success

Toyota Corolla is market leader in automobile industry for decades and still holds the title of bestselling car in the world, having sold 40.7 million cars since its introduction in 1966. Quality, reliability, relatively low gas mileage, affordability and dependability of Corolla’s keep them always in more demand all around the globe.

below is the most favorable reason behind the success of Toyota Corolla all the times.

1. Fuel Economy: A report says that 2016 Corolla gives 30 miles per gallon in the city and 42 miles per gallon on the highways which meant that it is very fuel-efficient car as compared to all other vehicles available in the market.
2. Competitive Price: The 2016 Corolla is starting from approx. $17,300 and this price is said to be under the average new car price.
3. Value:Toyota ensured that Corolla car is bullet-proof in terms of reliability. Therefore, Corolla offers much more to their driver for a very competitive price as compared to their competitions.
4. Resale Value:Residual value of Toyota Corolla after 5 years is 53.8 %. Research shows that 10^th generation Corolla has retained 56.8% of its value in resale market. Therefore, Corolla is great bet for getting good money back at the time of resale
5. Safety:11^th generation Corolla has received 5 start overall rating in crash test safety from the National Highway Traffic Safety Administration which is considered as perfect car in terms of safety.
6. Simplicity: . Corollas interiors take a minimalist approach to design which keeps control and unnecessary bells and whistles to a minimum level.
7. Reliability:Manufacturer of Corolla does an excellent job in producing mechanically sound vehicle. It has got few repair costs by excluding replacing spark plugs and brake pads, and oil change.

Market Strategy by Toyota

Toyota used product differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automobile industry.

• “Customer First” philosophy
• Value Delivery Network
• Market Positioned pricing strategy
• More-for-the-same value proposition

Toyota Corolla is “C” segment car (Medium cars) and Toyota has always targeted middle to upper income professionals in the age group of 35 to 45 who need true value for their money and comfortable ride in city conditions.

A report shared by the company says that “we put the message and Corolla in the way of the consumer on a regular basis through commercials, billboards, magazines, dealerships and much more.

To make effective marketing strategy enhances reach or direct influence on our target market – company did differentiation in following ways to make Corolla successful.

• Product Differentiation: Features, Quality, Performance added up in each generation car
• Channel Differentiation: Direct Communications with the Company
• Image Differentiation: Image and Perception of the brand across the marketplace and in automobile industry.

A below video given by vice president of Toyota communication gives more details about the strategy did by Toyota to make Corolla successful.

 

Recommendation

I would like to suggest below recommendation to Toyota Corolla manufacturer to make it more better car.

1. Toyota should install multiple manufacturing plans in big countries such as USA, China, India, Indonesia, Brazil, Pakistan, Nigeria, Bangladesh, Russia, and Japan etc. by making sure stock of car is available to delivery to intermediators to speed up delivery process.
2. Company should provide comparative more services offering as compared to their competitors in same industry to attack customers. For example, most of the automobile companies provide 5 first free car services once you buy a car. However, Toyota corolla may offer additional services offering if customer buy top model to generate higher gross margin.
3. Company should offer additional features such as auto roof, laptop charging pot in corolla to make it more attractive car.
4. Toyota should build up driver less corolla with competitive price to capture the possible market share.
5. Toyota should add up augmented head-up display to make life easier for driver. So, that driver can see speed, navigation window etc. on car front window.
6. Toyota can add up communication between vehicle feature. Meaning thereby, machines like car engines can able to communicate with all surrounded Toyota corolla car to make lesser traffic and horizontal.
7. Toyota should come up with smart fuel saving features in Corolla, where car pop-up you tip or notification with cheap gas price to your nearest gas price while you are driving. So, that driver can avoid paying high gas prices at any other gas station.

 

Thank you for reading my blog.

Prepared By-Bhagwant Singh (H00016831)

(Note- This blog is part of acedemic purpose at Cambrian College, Brampton, Canada)