Analysis of the Marketing methods used in Automobile Industries

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ABSTRACT

The dispersion of the automotive industry has a nested geographical and organisational structure. Global integration occurred through buyer-supplier relationships, especially between car makers and their largest suppliers. Production tends to organise regionally or nationally where parts and components, which are bulky and heavy, tend to locate in proximity with the assembler to ensure on-time delivery and to save transportation costs. Meanwhile, smaller, lighter and standardised parts and components can be located at a distance to take advantage of lower labour cost and economies of scale. Toyota Motors have adopted customised marketing, which requires thorough analysis of the domestic market of the country it is operating in. This means that Toyota motors have adopted different marketing strategies for its operations in UK and other parts of the world. The research aims at describing the market strategies of an organisation in the automobile industry. For the purpose of this research, the company Toyota is chosen.

TABLE OF CONTENTS

ABSTRACTII

CHAPTER 1: INTRODUCTION1

Research Background1

Company Overview3

Research Objectives4

CHAPTER 2: LITERATURE REVIEW5

Growth of Global Automobile Industry5

Marketing Strategy for Automobile Companies9

CHAPTER 3: METHODOLOGY14

Research Design14

Gantt Chart16

REFERENCES18

CHAPTER 1: INTRODUCTION

The purpose of this chapter is to provide the reader a brief overview about the research topic and provides the main purpose and aim behind this research study. It comprises of the background of the problem, which provides a brief overview of the topic of the research and the problem.

Research Background

In the global automotive industry, a period of great success with six consecutive years of record-breaking car production numbers continued until the Lehman Brothers shock, and then, a rapid decline in demand followed, and both the US Big Three and the Japanese automakers fell into the red. Later, numerous aid measures and economic stimulus policies have started the recovery of demand, but it is still stagnant at a low level.

In contrast, the emerging markets, in particular, Brazil, Russia, India and China (the BRIC countries), experienced temporary stagnation, but their recoveries were remarkable. In addition, as a result of the changing conditions of the global economy with the acceptance of a high yen, the Japanese industry has changed from the export of vehicles produced domestically to the production of both parts and vehicle bodies in the emerging markets themselves.

With these changes, however, the automobile market is continuing to expand. At the same time, out of concern for preventing global warming and other worldwide environmental problems, as well as in response to energy concerns due to the steep rise in crude oil prices, the development of electric vehicles (EV), hybrid vehicles (HEV) and fuel cell vehicles (FCV) has begun to flourish in many countries. On the other hand, in response to changes in the automotive market, development of technologies for conventional vehicles with gasoline and diesel engines that consume fossil fuels has also become vigorous. These include ways to increase fuel economy, reduce weight and purify exhaust gases, as well as to promote greater electrification and control-by-wire utilisation.

The automotive industry is one of the biggest in the world and employs more than eight million people making the vehicles directly, and more than forty million people indirectly through related manufacture and services sectors...