BRAND AUDIT REPORT - TOYOTA 1 PLATINUM CONSULTANCY BRAND AUDIT REPORT ON TOYOTA
SUBMITTED TO: SUBMITTED BY:
Dr Kokil Jain Manisha Singh Shanu Garg Ishaan Chaudhary Amber Jain Akshay Bhandula Utkarsha
BRAND AUDIT REPORT - TOYOTA 2 INTRODUCTION :
Toyota Motor Corporation, commonly known as Toyota and abbreviated as TMC, is a
multinational automaker headquartered in Toyota, Aichi, Japan. It is the world's third largest
automobile manufacturer by sales and production. The company was founded by Kiichiro
Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles.
Three years earlier, in 1934, while still a department of Toyota Industries, it created its first
product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor
Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino
Motors, along with several "non-automotive" companies.TMC is part of the Toyota Group, one
of the largest conglomerates in the world. Toyota Motor Corporation is headquartered in Toyota
City, Aichi and in Tokyo. Its Tokyo head office is located at Tokyo, Japan. In addition to
manufacturing automobiles, Toyota provides financial services through its Toyota Financial
Services division and also builds robots.
Japanese car company Toyota operates 75 manufacturing companies globally and markets
vehicles in more than 170 companies. Its brands include the Lexus, Prius, Avensis and Auris.
Japanese automakers - Toyota have developed bilateral and multi-lateral knowledge sharing
routines with suppliers that result in superior inter organizational or network learning. Toyota, in
particular, is widely recognized by both Japanese and U.S. firms as a leader in continuous
learning and improvement. There are a number of reasons to examine Toyota’s practices in
greater detail. First, Toyota is the largest Japanese company and is regularly voted by Japanese
executives as the best managed and the most respected Japanese company. Second, the most
rapid diffusion of lean production techniques (e.g., kanban, inventory reduction) has occurred
within Toyota and its suppliers (Lieberman, 1994). Moreover, Lieberman et al (1997) found a
significant positive correlation between membership in Toyota’s supplier association and
supplier productivity. In summary, Toyota’s “network” appears to be highly effective at
facilitating inter-firm knowledge transfers and may be a model for the future. The automaker,
Toyota, is the “central” or core firm in the network because: (1) Toyota is the only firm with
direct ties to every other firm in the network, and (2) Toyota coordinates the activities of all firms
in the network. As the central firm, Toyota also has the most to gain from developing learning
routines that increase the efficiency of the entire value chain or production network.
The company claims that “80% of all Toyotas sold in the last 20 years are still on the road
today.” Toyota is a strong car, a tough brand and far ahead in the branding strategy as compared
to its Japanese competitors Honda and Nissan.
The company has built its brand around 5 key factors:  Durability  Reliability,
BRAND AUDIT REPORT - TOYOTA  Affordability,  Style and  Fuel efficiency
A recent brand value report by Interbrand according to the report, Toyota has retained its top
position and is at placed 11th as the gas efficient GREEN Brand. The report says ,“ Toyota not
only distanced itself from the challenges of 2010 and 2011 this year, but also reclaimed its global
sales leadership position. Although much of the rebound occurred in the US, there is a renewed
sense of energy around the world. Design is playing a much bigger role, and its new tagline,
“Let’s Go Places,” ties together the joy and adventure of physically going somewhere while
infusing innovation with an optimistic outlook, crystallizing the brand’s direction. Toyota’s
engagement with customers also continues to pay off, which is evident in a number of key
category rankings and studies. The brand not only scored well with customers, but has led the
entire automotive segment nearly every time. Adding to the list of achievements, Prius sales
pushed boldly past the three million mark. The Prius continues to create a powerful halo effect
for the brand while the flagship mid-cycle Camry can still drive sales, albeit with increasingly
more incentives and support. Add in a sleeker Avalon and a completely redesigned Corolla , and
Toyota should soar into 2014. The brand, which topped Inter brand’s Best Global Green Brands
2013, is a fuel economy leader and continues to demonstrate strength in driving customers to
dealerships. For many brands, the challenges Toyota experienced could have been catastrophic,
but the brand’s speedy recovery is a testament to its resilience, leadership position, and the enduring appeal of its offer.
Toyota’s change in brand value this year is 17%.
It overtook BMW as the most global car brand and remains the best Global Green Brand. It is the
top brand among the automotive brand followed by Ford, Honda, Nissan, Volkswagen and so on.
Toyota, the Best Global Green Brand for the third consecutive year, continues to dominate the
hybrid vehicle market. The company sold more than 2.9 million Prius models worldwide in
2012. Toyota is also exploring the future of mobility by building a low carbon society called
Toyota Ecofull Town in Toyota City, Japan. From reducing greenhouse gas emissions to using
reusable metal containers for shipping and distribution, Toyota is a leading example of what can
result--both in terms of performance and perception--when a company makes sustainability an
integral part of its overarching business strategy.
Toyota’s website is designed with a lot of innovation, ensuring customer interaction and
participation. There the customers can actually look about the features and visually have a test
drive the automobiles, also there are mentioned a brief about its strategies, upcoming projects and techniques.
It is also one of the pioneers in automobile innovation which is the company's core value. The
technological expertise is prime competitive advantage that has helped the company to cater the
global automobile market. Since the inception of Toyota, the company is committed to produce
reliable and value added vehicles, Innovation is the major tool for the company and it also uses
its technological expertise in meeting social and environmental responsibilities. In order to
operate in the global market, the company has formed its seven specific guidelines and
principles. These principles mainly include with business ethics, respects and honor for every
BRAND AUDIT REPORT - TOYOTA
country and its culture, and develop a growth oriented organisation with the business partners 4 etc.
The company has realized increasing negative impacts of industrialization and carbon emission
from increasing number of vehicle. Therefore, the company is now focusing on eco-friendly cars
like hybrid and electronic cars. Toyota has identified three major environmental issues relating to
its vehicle manufacturing and hence, it has developed and incorporated necessary steps for
making the things better for environment. Firstly, it attempts to enhance its transmission and
engine efficiency by downsizing measures. Secondly, energy management is another major task
for Toyota in this respect. Finally, for reducing overall vehicle load, it tries to lessen rolling
resistance, air drag and vehicle mass.
Quality and safety are two major parameters for Toyota and hence, the company strives to bring
constant development in its operational and management process. Toyota's production system “is
steeped in the philosophy of "the complete elimination of all waste" imbuing all aspects of
production in pursuit of the most efficient methods.
The first is called "jidoka" (which can be loosely translated as "automation with a human touch")
which means that when a problem occurs; the equipment stops immediately, preventing defective
products from being produced”. The second concept is the just-in-time process that helps it to
maintain a smooth process of operation without maintaining high inventory.
The company recently attracted negative coverage following a mass recall of vehicles. Toyota
will have its own performance brand within the next couple of years, the company is currently
discussing sport lines for Toyota models.
Toyota’s success comes despite the car maker having faced major hurdles in the past 12
months, including a boycott in China and its largest single recall ever relating to faulty power
window switches in 7.4 million vehicles. Interbrand says Toyota’s ability to retain its title as
the world’s largest manufacturer and continued ability to attract customers to its showrooms
contributed towards its top 10 ranking.
The Japanese giant was judged to be so successful in managing its brand image that it also
took out overall victory in Interbrand’s list of Best Global Green Brands, on the back of its
success with hybrid powertrains.
BRAND AUDIT REPORT - TOYOTA 5 CBBE MODEL OF TOYOTA :
CBBE – Customer Based Band Equity Model is a model for Brand building, which maps out
what Brand equity is and how it should be built, measured and managed in the best way. The
power of a brand is in what resides in the minds of the customer’s. Marketer face a continuous
challenge in building a strong brand in the minds of the customers- it can be done by ensuring
that the customers have the right types of experiences with products and services and their
accompanying market programs so that the desired thoughts, feelings, images, perceptions and
attitudes are linked to the product.
CBBE model lays a series of steps for building a strong brand. There are six steps of brand
building – Salience, Performance, Imagery, Judgements, feelings and Resonance. These building
blocks constitute of the CBBE pyramid.
Brand Salience Elements :
Brand salience helps the brand in category identification. Brand awareness is determined in
terms of Brand Depth and Breadth: Brand Depth :
Toyota the 10 among the top most brand among the world and the top most brand among the
other automotive brands has been sustaining its position on 11th , 12th position since long. It
achieved 17 % of brand growth this year. Several researches have proved that Toyota is a well
recognized and identified brand all over the world. Its worldwide presence has made it well
known among the customers. Its primary served market being USA, Germany, Japan, Asia and various other countries.
Definitely superlative quality, great services are the factors that enhance a product’s recall value
and Honda as a Brand signifies quality with style and design.
Toyota is an established brand which has significant brand depth in terms of recall, as you
remind for innovation, comfort etc Toyota names come in the mind. Its tag line “lets go places”
signifies the importance of comfort, design, fuel efficiency in humans and helps the customer to
relate and recall the toyota brand. Brand Breadth :
After the recall the purchase consideration of Toyota is also very high and very close to brands like Ford, Nissan etc. T
oyota has always broadened its product portfolio and responsive to
change in market which helps in getting the breadth in the segment.
BRAND AUDIT REPORT - TOYOTA
Based on the diversified choices it provides it is favored by the consumers. From sedan cars to
SUVS, hybrid – fuel efficient cars, eco- friendly cars, trucks etc Toyota provides a wide range of
varieties to customers based on their choice, needs and preferences.
Toyota has always emphasized on providing innovations through its products. The word of
mouth spread by a Toyota customer buying its product has created brand loyalty among the customers.
Toyota’s expertise is in hybrid technology,
Imagery Dimensions Elements :
With Honda the psychological need of any customer is the experience of owning a Honda.
One feels pride on using any product of it. For example user of Honda Cars feels sense of
pleasure while driving it, which creates a satisfaction of having the most trustworthy brand.
Advertisements of Honda portray a sense of security and they are always spreads the caring
message which has created a strong feeling and hit the psychic of all the customers.
For example if we take an Honda Jazz, in spite being most expensive in the segment, people are
buying it because when it comes to safety of the passengers, Honda make no compromises. Truly
speaking, at Honda, safety is not an option. These safety features are a standard offering across
the entire range of Honda in the Indian market.
The imagery used by the brand throughout is different as per the segmentation being fast paced
and assertive for the sports range keeping in mind the youth, classy, stylish and comfort for the
sedan and suvs. They focus on the whole look and feel be engaging and exciting. Toyota designs
its imagery meet its objectives, targeted directly at the identified demographic. History and heritage:
It can be associated with the era of family car which was the first corolla model it began it was
formed in 1957, it celeberated its 25 th anniversary in 1982. Toyota marked the start of the new
millennium with the launch of the Prius, the world's first mass-produced gas/electric hybrid car. Personality:
Its personality depicts sincerity, competence, class and sophistication. Its variety of cars from
hatchback to sedan to SUVs, hybrid cards, electric vehicles it included all categories of user profiles.
Toyota has been ranked as the best green brand. The cars, Suvs, trucks depict innovation,
comfort, design, class and luxury as per the target customers.
The suvs and heavy vehicles surely provide for value and performance. These personality traits
make the brand dependable and customers look upon the products with expectations.
Brand Performance Elements :
BRAND AUDIT REPORT - TOYOTA
Product is the heart of the brand equity. It is the primary influence what customers experience
and what they hear about, and what the firm tells the customers about the brand. Brand
performance meets consumer functional needs, if not meet then surpass their expectations. The
performance attributes and benefits which make up the functionality vary differently :
 Advanced outstanding designs  Hybrid designs  Fuel efficient  Environmental performance JUDGEMENT DIMENSIONS :
The customer judgement decisions to own a Toyota product are basically affected by the following key elements:
 Brand Quality – good quality service provide satisfaction and value to customers- Toyota
believes in building relationships with the customers to provide them a remembering
experience. The roll back of cars which created a lot of negative word of mouth about the
brand is an example anout the company’s concern about the quality.
 Credibility – trustworthiness and likabilty expertise are the key factors for Toyota . Its
history and focus on customers needs and the effective service has created tlikablity
towards the brand which results in trustworthiness. People who own a Toyota believe that
its secure, safe , technology upgraded and eco- friendly.
 Superiority- Toyota has achieved superiority with respect to brands like Nissan, Honda
etc on the basis of differentiation element which it provides in its products. Feelings Dimensions :  Excitement  Self- respect  Security  Warmth
 Satisfaction (dealer as well as consumer) Resonance Dimensions:
BRAND AUDIT REPORT - TOYOTA 8
 Sense of community – Toyota has a large group of followers on social networking
websites like facebook, twitter etc also its official websites provides every minute details
about its product which a customer can actually visualize. Hence demanding lot of consumer involvement.
 Pride- the style, class, value provided by the brand creates a sense of pride in the
customers to in own a Toyota product. TOYOTA LOGO :
Toyota is renowned worldwide for its cars, trucks, vans, robots and other automobile related
products. The Toyota logo can be described as simplicity at its best which also carries a meaning.
The original name of the company was Toyoda which was changed to Toyota as this word is
written with eight brush strokes and was considered to be auspicious for the company. The
decision brought lots of luck and success to the company and today it stands as one of the world’s biggest car makers. Toyoda 1936–1947
BRAND AUDIT REPORT - TOYOTA Toyota 1947–1989 (Japan)
The Japanese language characters "トヨタ" on the "Hinomaru" red circle spell the name "Toyoda". 1958–1969
This logo is in the Times New Roman font. 1969–1978 1978–present 1989–present
This logo saw the premiere of the Lexus brand
Logo with slogan "Moving Forward" from 2004-2012.
BRAND AUDIT REPORT - TOYOTA Stacked version 3D versio 3D version without the text.
The Toyota logo is considered to be the key element behind the company’s phenomenal success
which helped it become the leader of the automobile world. The logo is a sign of elegance and
simplicity and is a magnificent blend of sleekness, style, sheer attraction and practicality.
DESIGN ELEMENTS OF TOYOTA LOGO :
The unique design of the Toyota logo is a symbol of the company’s great quality and showcases
the traditions founded by its owners back in the 1930s. The use of the overlapping ovals is a
reflection of the company’s commitment to its customers and a pledge of reliability and satisfaction.
BRAND AUDIT REPORT - TOYOTA
 Two perpendicular ovals represent the relationship of mutual trust between company and customer.
 The bigger oval implies the global expansion of toyota’s technology and unlimited potential for future.
Shape of the Toyota Logo:
The Toyota logo comprises of horizontally stretched elongated ellipses. The three ellipses
represent the customer’s trust; the product and the great strides Toyota has made in the field of motoring technology.
Color of the Toyota Logo:
The use of red and white in Toyota logo stand are an attractive mix. The stretched ovals are
portrayed in red or metallic colors with a white background depending on the purpose.
Font of the Toyota Logo:
The Toyota logo font is inscribed in simple roman style, simple enough to attract the customer’s
attention. The font is simple yet elegant and gives the Toyota logo the look that inspires beauty and confidence.
Today, the Toyota Company is a pillar of quality and trust in the world of automobiles winning
the hearts and minds of motorists all over the world. Likewise, the Toyota logo is the exclusive
sign of luxurious taste and quality product. BRAND IDENTITY :
Toyota’s values are highly differentiated and relevant to consumers in all parts of the world. Its
brand identity is based on clearly differentiated values that set it apart from the competition. The
visual identity – stylish and comfortable, technically brilliant, with emotionally charged content
– is based on these values. In this way, the brand's profile is maintained on an ongoing basis, and
at the same time constantly reinforced.
It has maintained its leadership brand position for many decades. Its success is the result of a
consistent brand identity created and implemented by the company.
New signage brings fresh, stylish and high quality image to Toyota retailers: 
Silver metallic symbol replaces current red brand identity 
New mark is consistent with vehicle badging and brand signature 
Three year roll-out program across approximately 3000 retailers 
Completion coincides with 70th anniversary of Toyota (2007)
BRAND AUDIT REPORT - TOYOTA
Toyota is to launch a fresh brand identity to reflect the company's position as a high quality
manufacturer of modern, stylish and elegant cars.
The new brand identity will be rolled out to all Toyota retailers across Europe (around 3,000
sales and service points) over the next three years. The program will commence in April 2005.
At the heart of the new brand identity is a three-dimensional, silver metallic interpretation of the
classic Toyota symbol, three interlinked ellipses. The new brand identity achieves consistency
between the retail signage, the badging on Toyota vehicles, and a new brand signature.
The aim of the new program is to increase customer awareness and recognition of the Toyota
brand. At the same time the new symbol represents the fresh, stylish and high quality image of Toyota and its vehicles today.
The Toyota 'three ellipse' is a worldwide symbol of Toyota's close relationship with its
customers. It was created in 1989.
The two centre ellipses interlock at right angles to represent a reliability relationship between
Toyota and its customers while their shape symbolises the 'T' from Toyota. The space in the
background implies the global expansion of Toyota technology and unlimited potential for the future.
The new signage, the third revision of Toyota's image in Europe since it was established in 1963,
has been warmly welcomed by Toyota retailers at a recent pan-European convention, held at the end of February.
What is Brand Architecture?
Brand Architecture is a system that organizes brands, products and services to help an audience
access and relate to a brand. A successful Brand Architecture enables consumers to form
opinions and preferences for an entire family of brands by interacting or learning about only one brand in that family.
An established Brand Architecture is an important guide for brand extensions, sub-brands and
development of new products. It will also provide a road map for Brand Identity development
and design, and remind consumers of the value proposition for the entire brand family. It also
provides the maximum brand value by fully leveraging both corporate and sub brands.
Below are the three most common types of Brand Architecture: 1.
Branded House – Which offers a very logical path to brand extensions and new brands.
In a branded house, the master brand is always present and is transferred easily to extensions. A good example is FedEx.
BRAND AUDIT REPORT - TOYOTA 2.
House of Brands – Insulates and protects the master brand from brand extensions and in
turn protects brands from each other. A house of brands also allows for a Master Brand to
have competing brands in the same segments. A good example is Proctor and Gamble. 3.
Hybrid or Endorsing Brand – Very flexible, provides the option to use the Master
Brand or not. Able to utilize further segmentation through endorsement. A good example is
Toyota with the Lexus and Scion brands.
BRAND AUDIT REPORT - TOYOTA
While these three types are the most common, they each have different strengths and weaknesses. . Brand Extension :
It has Lexus, Daihatsu and Hino sub brands under its ownership. Recommendations:
Toyota must pull up its socks and frame up an appropriate strategy framework to boost up the
sales by regaining the consumer trust. Toyota forgot the fact that consumers want to see a
company realising the full responsibility. They want the organisation to be in control by outlining
the issue and a true intension to solve the same. Toyota has failed on this ground. There are
certain arenas which are required to be considered by the organisation to get back its tarnished
brand image. When an issue arises, Toyota must respond it in a much quicker way. The company
must monitor the feedback of the consumers and must communicate with the customers in an
effective way. The company is required to use these feedbacks effectively to frame up the
marketing strategies to develop an extremely strong brand with flexible brand management
processes. Toyota is required to be transparent in its operation; it should forget the fact the
covering up the problems can raise more issues in the coming years.
Certain steps are required to be realised by the company and at the same the company must act in
accordance to it to manage and enhance its branding. In this competitive era, international brands
and companies cannot operate in isolation. The stakeholders of the company are very much
involved with the brands. That is why Toyota management must put its best foot forward to
manage the stakeholders by properly communicating the situation to its stakeholders. At the early
stage, there would be few people who would have the knowledge about the issues. By
communicating early would develop the trust with the stakeholders as well as with the customers.
The company must strategise properly to gain its brand value and keep on improve the same. An
appropriate marketing is significant and can be said as the stepping stone to enhance the brand
value. Researches say many customers who already own a Toyota car do not want to buy the car
again; they prefer cars like BMW, Honda over the same. The customers have felt that the
company has not been much efficient in its after sales service. The company must enhance its
after sales service to retain its brand name among the existing customer base. The research has
revealed that a considerable number of respondents think that attributes like brand name,
physical appearance, mileage and price to be the most significant ones in a car. A major portion
of the sample population thinks that ‘Toyota' has marked its presence in ‘comfort in driving' and
‘convenience in handling'. The company must enhance all these attributes to retain its customer
base and develop new customer base. This is also very important as a considerable number of
people think that they would reply mostly on ‘word of mouth' while purchasing a new car.
Advertisement and promotional activities through ‘word of mouth' would only be possible when
Toyota would be able to satisfy its customers with better service, safety and enhanced quality
products. Apart from that, Toyota must improve its televisions advertisements as well as
promotional activities to enhance its brand value. There are many more other attributes like
BRAND AUDIT REPORT - TOYOTA
physical appearance, features, accessories and guarantees or the warrantees which are required to 15
be enhanced by the company. The company must look into these attributes and the proper
promotional activities to regain its tarnished brand value across US as well as other countries.
The company is required to develop the strategies with the help of its distinctive competencies, resources and capabilities.
The company must include the best resources in under its sleeve and at the same time must
nurture the same to make them the company's competitive advantage over its competitors in the
market. Toyota's valuable tangible resources include various equipments associated with the lean
production system, introduced by the company itself and used the same in the factories. These
resources have enabled the company to reduce its operation cost as compared to the competitors.
With its valuable resources, the company has been able to develop distinctive competencies by
manufacturing techniques such as just in time inventory systems, self managing teams and
reduced set up times for the complex equipment. The company must develop the capabilities to
nurture its resources to develop the competitive advantages.
The above sections of this paper have discussed very crucial areas which are helpful to realize
the entire prevailing situation of global automobile industry for brand related strategy
formulation. Brief overview of the company has explained its organisational culture, operational
process and its other major activities. This discussion has help to understand the underlying
strengths and weaknesses of Toyota. The literature review section has provided theoretical
background relating to branding and marketing. Effective and efficient marketing strategy is the
foundation for developing higher brand image in the mind of target consumers. However, the
brand related specific models and theories are helpful to concentrate on brand development
strategy. The secondary data analysis have examined prevailing market situation and it has
reflected various aspect which are extremely influencing in determining brand related strategy.
Toyota must consider the market opportunity, market demand, competitions and future growth
for framing branding strategies. The primary data has been obtained through a set of relevant
plausible questionnaire. The questions in the given questionnaire have been framed to understand
consumers' brand preferences, brand choice and their buying behaviors in automobile
purchasing. These stated sections have reflected very significant areas for drafting recommendation for Toyota.
Before offering recommendations, it is necessary to summarize the major attributes of a
successful automobile company. At present, all the automobile companies must possess some
specific attributes relating to effective cost-structure, efficient production operation, well focused
strategy, well-esteemed brand image and identity and reliable products and services offerings.
Each of these attributes is explained to understand their significances. Firstly, in automobile
industry, product efficiency is the first priory for being successful in market. In these respect,
Toyota's production efficiency is the most flourishing and efficient comparing to its key rivals.
The company aims to achieve total quality management (TQM) as it has implemented ‘jidoka'
and ‘JIT' to control and manage operational process for maintaining higher quality. Secondly,
well established management system and organisation are vital internal criterion for automobile
companies. Flexibility is also necessary for managing foreign market. Toyota is also expert in
this respect as it has successfully expanded and managed its overseas markets. Thirdly, every
company who tries to create their brand in market must develop brand specific managements and
committee for enhancing market prestige through better consumer relationship. Toyota has
developed its teams for quality maintenance and for CSR programs but it should develop a
committee for brand development. Fourthly, focused strategy for branding and integrated
BRAND AUDIT REPORT - TOYOTA
marketing is inevitable for leading automobile manufacturers for brand repositioning in existing 16
market. The giant companies like Toyota, GM, and Ford etc have their own specific strategies for
marketing but brand specific strategies are very useful for countering intense competition in
automobile industry. Finally, the most important aspect is product and services that must meet
the consumers' expectations. Target consumers have certain hope from their brand companies
and these companies must offer latest technological innovations and higher reliability and safety
level. The successful and leading automakers have offered wide ranges of product by targeting
different segments of market. For example, Toyota has introduced its Prius which is one of the
best cars for tech-savvy and environmental conscious people. Therefore, Toyota should keep
introducing such products that will enhance its market image among its target consumers.
Identification of market trends and understating of changing consumer behaviours are two vital
areas for Toyota for its brand improvements. Therefore, the latest trend in automobile market is
the technological innovation. Toyota must have a strong grip on latest technological expertise for
offering consumers' specific demand. Negative impact of automobile industry on environment is
another major issue for the entire industry. Governments and other international organisations are
now becoming stricter regarding carbon emission. Therefore, Toyota must try to develop its
operational process and business model that will strive to develop more number of fuel efficient
vehicles. As per the secondary data analysis, the growth of automobile industry is most of
developing countries is expected to be lower comparing to emerging counties like China, India
and Taiwan. Therefore, Toyota should more focus on these markets for brand developments
before other multinational companies can identify this opportunity. As per the theories and
models in literature review, Toyota should implement integrated marketing approach for
enhancing brand awareness and brand identity in developed and emerging markets. It must create
higher level of trust and confidence among its target consumer by incorporating better
communications and consumers services. Conclusion
Memory down the lane, many people would remember that Toyota's brand was one of its main
advantages. However, situation has changes in these days; as of now, its brand architecture has
become one of significant strategic problem. Toyota has been suffering from a number of quality
issues. The company has recalled approximately 1.7 million cars in the concern of fuel leaks. It
has added another dent to the tarnished reputation in the crucial US market. The latest recall of
the company are mostly in Japan, including the IS and GS Lexus Luxury models in North
America. The company has faced the biggest difficulties in winning back the consumer trust.
The US sales of the organisation were reduced in the year 2010, despite of the fact that Toyota
has emerged as the industry leader in 2008 with an increasing revenue amount. In the process,
the company have recalled around 1.7 million vehicles, which surely put an adverse effect on the company brand image.
Like a number of Japanese companies, Toyota has developed its business with an intensive focus
on a single corporate brand. The company markets Lexus and Scion, however, a considerable
amount of its revenue comes from selling off its sub brands. The earlier concentrated approach
has certain distinctive benefits. This strategy has enabled Toyota to maintain a single, united
organisational culture which was significant for the success of Toyota. However, brand
architectures have several strengths and weaknesses, and the same is true for Toyota, one of the
leading automotive companies across the globe. Earlier, the company used to invest all its money
to its master brands rather than pumping that into the sub-brands for enhanced marketing
efficiency. Undoubtedly, this strategy has been able to reap well for the Toyota brand. One single
BRAND AUDIT REPORT - TOYOTA
brand has reduced the number of components required as several components are common and 17
shared among the sub brands. This has been one of the significant reasons behind the success of
the company. Focusing on a single brand approach where Toyota sub brand cars are linked to one
single corporate brand. This means that an issue emerging with any Toyota vehicle model would
not only affect the sales of another model, but across the entire automobile range. Back in the
year 1990, Professor Marry Sullivan has used quantitative modelling to explore the effect of
brand architecture on the automotive sales. The research has revealed that any adverse situation
in any brand model can affect the other models as well as in different intensities. A downturn in
one brand would also affect the other brands as well as sub brands which are yet to launch.
Putting all the sub brands in one basket can emerge as a bad move in the arena of branding and
marketing. An appropriate marketing framework with the suitable strategies is required to
retrieve the tarnished brand image of Toyota. REFERENCES:
http://www.consumerreports.org/cro/2013/02/2013-car-brand-perception-survey/index.htm
http://www.ukessays.com/business/toyota-motor-corporation-in-the- modern-age.php#ixzz2h1uOLMio