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Introduction

Brand background

Toyota Motor Corporation is the envy of the automotive industry and held high
esteem of manufacturing and leadership excellence (Dyer, 1998; lyer et al., 2009;
Spear, 2004). And having a high marks in consumer confidence (Stewart & Raman,
2007).

Current situation of the brand-high level of customer loyalty


According to a magazine, Business week, Toyota is number6 of a ranking of the top
100 brands in term of brand value.1(Business week 2007) Moreover, Toyota is the
most customer loyalty brand in automotive industry according to Brand Keys
customer loyalty engagement index (brand key 2009)2 Therefore, Toyota has a high
customer loyalty level.

CBBE Model
In CBBE model, it can reflect the view of customers toward Toyota. (Keller 2007 好似!!
CBBE model can be explained in six stages:

CBBE Model – Salience


Depth awareness
According to Jeremy S. Wolter 2009, the research findings show that Toyota has 0.26
score of brand awareness. (Jeremy S. Wolter 2009) (See the Appendix 1 of the
research questionnaires) Thus, when customers think of automobile, they will aware
of Toyota.

Breadth awareness
When customers think of automobile, they will not only bear Toyota in mind, but also
they will purchase Toyota. It can be proved by the financial report of Toyota in 2009.
The report shows that November sales of 133,700 vehicles. There is 11.5% increase
over November 2008.3 (Website sales report 2009) Therefore, Toyota has are high
1
Interbrand, JPMorgan Chase & Co., Citigroup, Morgan Stanley, BusinessWeek
2
http://www.brandkeys.com/awards/
3
http://pressroom.toyota.com/pr/tms/toyota-reports-november-sales-149419.aspx?ncid=13295
level of depth and breadth awareness.

CBBE Model – Performance


In CBBE Model, we can see that Toyota has some associations related to either
performance or imagery may become linked to the brand. And these associations are
strong, favorable and unique, so that Toyota can build brand equity.
In performance stage, these associations are running in rational routine:

Primary Ingredients-High Quality Association


Toyota won the winning of engine award4 because Toyota has an approach of
production quality control which is “Company Wide Quality Control” means all
employees in different departments should finish two tasks which are their own job
and quality assurance (W. Edwards Deming 1940)5 Thus, Toyota engines have high
design and high quality standard performance association

Style & Design-Safety Association


Toyota has an advanced technology of steering and braking. They also use computer
simulations and real-life crash tests to design the car such as Supplement Restraint
System (Airbags)6. Hence, Toyota associates their brand to safety.

Product Reliability- Reliability Association


Toyota uses “Company Wide Quality Control” approach (W. Edwards Deming 1940)5
and Toyota philosophy, Kaizen (continuous improvement) to form product reliability
association (Toyota way 2001)7………conclusion………………

CBBE Model – Imagery


In Imagery stage, these associations are running in emotional routine:
Brand Personality-Excitement and Sincerity
According to Lee sha (2005), 豐田汽車銷售公司企劃公關室經理李湘, Toyota want
to deliver a image of their brand is that “Toyota automobile is their partner”. Their
partner helps them to generate freedom, wonderful life experience (China economic
times 2005)8. Moreover, Toyota also emphasizes down-to-earth and economize. It is
different from other luxury brand- BMW and Benz.

(2009)
4
http://www.toyota.com.hk/innovation/technology/index.asp
5
http://www.toyotauk.com/main/download/pdf/Our%20approach%20to%20quality.pdf
6
http://www.toyota.com.hk/innovation/technology/glossary/gloss_srs.asp
7
Toyota internal document, “The Toyota Way 2001,” April 2001
8
http://media.people.com.cn/BIG5/3802144.html
Noteworthy Event-World Rally Racing (WRC)
Toyota team uses Toyota car (e.g. Supra) and won champion and the best driver and
manufacturing awards in 1975, 1993 and 1994. Absolutely, the events can show the
quality and performance of their car. These events can association that Toyota is the
champion of automobile industry.9

Noteworthy Event-Toyota's Environmental Activities Grant Program


Toyota forms the program to advocate environmental protection such as “Global
Warming Countermeasures”. They form that program in order to build social
responsibility business image.

CBBE Model – Judgment


Brand Quality
According to Consumer Reports' 2010 Annual Car Reliability Survey, Toyota is the
latest predicted-reliability Ratings of new cars10 (Consumer Reports 2010). In
addition, consumer reports held some car tests (e.g. braking and control, etc.), in
order to evaluate and rate the car (consumer reports 2010)11. That’s mean customers
have a high quality and reliability judgment toward Toyota.

Brand Credibility
According to J.D. Power and Associates 2004 Germany Customer Satisfaction Index
(CSI) Study, Toyota wins all aspect for the third consecutive year12. For instance,
appeal (including performance, design), dealership service and ownership cost.
Especially, vehicle quality and reliability which has 30% of total score. Thus, this index
can reflect that customers have a credibility and reliability judgment to ward Toyota.

CBBE Model – Feelings


Security Feelings
Toyota ranked the highest in Customer service index (CSI) of satisfaction. That’s mean
after purchasing, most of them feel satisfaction. Moreover, they also feel Safety and
comfort (consumer reports 2010).
9
http://zh.wikipedia.org/zh-hk/Toyota
10
http://blogs.consumerreports.org/cars/2010/10/consumer-reports-2010-annual-car-reliability-
survey-gm-makes-big-strides-while-honda-toyota-dominate-pr.html
11
http://www.consumerreports.org/cro/cars/how-we-test/introduction/how-we-test-introduction.htm
12
http://www.toyota.com.hk/about/news_and_events/jdNews.asp
…………….
………….
…………………
…………………..
………………

CBBE Model – Resonance


Behavioral loyalty-most common repeat owners
In order to reach resonance level, Behavioral loyalty is necessary. A research findings
shows that nearly 58% of Toyota’s owners will purchase new vehicle stuck with the
brand (Edmunds.com 2010)13. That’s the key of being resonance.

Sense of community-Online Community


Toyota has a Facebook group community which has 253,109 people like that group.
Moreover, there are so many forums and clubs of Toyota online which are places that
Toyota owners can share their experience. (e.g. Toyota owners club)14 Surely, those
communities also provide are ways for Toyota to build relationship and communicate
with customers.

Active engagement-Enthusiastic Customer


Toyota held a competition to establish a new logo emphasizing speed for its new
product line and receive 27,000 suggestions from customers. Besides, on online
community, enthusiastic customer will answer the question about Toyota actively.
Moreover, on the Facebook group, there is an activity, tell your story, customers can
share their own stories of Toyota on the page. Therefore, we can see that Toyota
brand can reach the resonance level.

Challenge of Toyota-Recall Crisis


According to above mentioned, CBBE Model tell us Toyota has a high level of
customer loyalty and reach the level of resonance. Unfortunately, the Recall Crisis
may destroy the brand reputation and loyalty level because Toyota fail to take full
responsibility, be empathic to the victims (Ong Hock Chuan 2010).
However, after the crisis, Toyota still ranked as the second high of loyalty brand in
automotive industry (brand keys 2010). Customers still buy Toyota cars and trust
other cars of Toyota (CNN Money 2010).

13
http://latimesblogs.latimes.com/money_co/2010/05/toyota-and-ford-owners-most-common-
repeat-owners-.html
14
In 1936, Toyota entered the passenger car market with its Model AA and held a competition to
establish a new logo emphasizing speed for its new product line.
Toyota seems 看似冇咩大問題 OF Brand. According to Ronald Gray 2010, the reason
is that the “corporate reputation provides a cushion or buffer, in terms of company
image, during times of crisis” (Gregory 1998). Thus, according to a survey, 51% of the
samples think Toyota will regain the leader status of automobile industry (Roger W
Guyette Jr 2010). Therefore, the issue can proved that Toyota has a strong corporate
reputation and high level of loyalty.

Marketing mix theory-4Ps


Product
Toyota has 13 Passenger Cars and 4 Light Commercial Cars such as Yaris and Prius.
Toyota philosophies, “Kaizen” (continuous improvement) and “Pokayoke” (stop
production line automation when error is detected), can ensure Toyota’s product
quality (Toyota way 2001). That is the tangible benefit of Toyota’s cars. Therefore, the
product contributes to the result of CBBE Model that customers has are high quality
and reliability judgment toward Toyota.

On the other hand, Toyota’s marketing efforts emphasize positive experiences of


ownership, vehicle quality and the relationship with customers (Mary Connelly
2007)15. Moreover, Toyota has some innovation technologies such as engines which
can reduce emissions and save fuels which are environmental friendly (e.g. Hybrid
Synergy Drive Power Train).16 17 These are intangible benefits of using Toyota cars.

Price
To set price, competitors is one of the key factors. Toyota set a lower than the
competitors relatively. For example, low price of Prius to compete with Honda (Curt
McAllister 2008). Moreover, compare Toyota (Camry) and Honda (Accord) similar
models, Toyota net price is $31,134 which is lower that Honda’s $32,380. In addition,
Toyota adopts a fixed price strategy before 2008 (Jonathan Soble 2008). 18 It can prove
that Toyota emphasizes economize and down-to-earth. It is different with the High
class Luxury car such as BMW.
On the other hand, the other key factor of setting price is production cost.
Toyota production System (TPS), has a approach, “Toyota Production System House”
(figure X), emphasizes “best quality, lowest cost, and shortest lead time through the
elimination of waste” (Taiichi Ohno 1950).

15
http://www.accessmylibrary.com/article-1G1-170590405/toyota-ad-constants-stress.html
16
http://www.toyota.com.hk/innovation/technology/engines/hsd.asp
17
http://www.toyota.com.hk/innovation/technology/index.asp
18
Jonathan Soble. Financial Times. London (UK): Aug 26, 2008. pg. 17
(figure X)

“Just-in-time” approach in here means TPS produces only the necessary products in
the necessary quantities at the necessary time (Teruyuki Minoura 2003)19 it can
increase the efficiency and reduce the waste and cost of production.

Place & distribution channel


Toyota is an international business. In distribution channel, there are two logistical
concepts: regional bases and dock-based operations.
In regional bases, they form some multiple plants and distribution centers to better
allocate their product. Due to those five headquarters, Toyota can localize and better
meet the needs and wants of different countries’ countries. That’s why customers always
feel satisfaction of Toyota !!!(reeference).
In dock-based operations, Toyota uses port facilities to acquire cars which are
produced in other countries. In the port, they will operate the quality control
procedures. This is a big piece of Toyota’s distribution channel process because
around $67 billion in imports and exports handled in the U.S. in 1999 (Maritime
Administration statistics 2001)

Promotion
Advertisement
Toyota’s has a print ads which is a tree mixed up by human (Appendix). The direct
objective is introducing Toyota car which is “Zero Emission”. And the indirect
19
The “thinking” production system, At the 2003 Automotive Parts System Solution Fair held in Tokyo, June
18, 2003, Teruyuki Minoura
objective is building the brand image which is environmental protection. Due to this
promotion, customers have a social responsible business image toward Toyota.
Moreover, Toyota Corona print ad which is information-based (Appendix), show the
details of the function and quality of the car. So, it reflects that customers have the
High Quality of attitude toward Toyota in CBBE Model. Moreover, it can attract
customer who have a security feelings of automobile.

Product placement
In a Hollywood movie “The other guys”, we can see the Hollywood actor driving
Toyota’s cars. Customers can see the real performance of the car. The movie can
generate a feeling that if you drive Toyota, you will be the Hollywood actor.

Brand Elements & Secondary Association


The High level of customer loyalty of Toyota can also be attributed on brand
elements and secondary associations:

Brand Elements
Brand Name-Toyota Motor Corporation
In 1936, they change brand name from “Toyoda” (the family name of the founder) to
“Toyota” which means wealth, good fortune (fertile rice paddies) in Japan. So, the
name is meaningful.
On the other hand, this name was trademarked and registered in 1937 as Toyota
Motor Company which is protectable. The full name shows which industry Toyota is
in. Thus, the name is memorable.

Brand Logo
In 1989, Toyota created a new logo which used 3 ovals to mix up and form a “T” that
means Toyota (Appendix). Besides, the name is meaningful because overlap of 2
ovals means trust and relationship between Toyota and customers, and global
expansion of their technology and unlimited potential for the future. Then, this logo
appeared on all the product and advertisement of Toyota. So, it is transferable.

Slogans - “Oh, What a feeling!” & “Moving Forward”


In 1978, “Oh, what a feeling!” is a well-known campaigns (memorable) in Toyota
advertisement and became part of American lexicon (Steven Sturm 2007). That
slogan reflect Toyota emphasize providing positive experience to customers. It can
reflect that customers have a positive and excitement feeling (feelings stage of CBE
Model) toward Toyota. Moreover, now, Toyota slogan is “Moving Forward” which
means that have passion for innovation of technology and their product. They are
promising they will keep progress. It is likeability. That means they will always
improve and focus on the quality. That is the reason of customers having positive and
high quality and reliability judgment (Judgment Stage of CBBE Model) toward Toyota.

Therefore, Toyota’s brand name, logo and slogans can contribute to high level of
awareness in Salience Stage of CBBE Model as they are memorable.

URLs-“http://www.toyota.com”
Toyota provides their details information of brand history, product, outlet, etc on
their website. Also show their award in automotive industry. In addition, they show
their innovation technology and safety information on the website. It can provide
confidence and High quality image to customers. This brand element contributes to
the High quality judgment and positive safety feelings in CBBE model (Judgment and
feeling stage).

Secondary Association
Country of origin-Japan
Japan is one of the world leaders in science and technology as Japan has 15 Nobel
laureates in science such as Makoto Kobayashi20. Thus, Toyota can associate to a high
and innovative technology image. This association contributes to have a high quality
product image in judgment stage of CBBE Model.

Events
WRC associates that Toyota is a champion in cars industry as they won in WRC.
Moreover, Toyota's Environmental Activities Grant Program associates Toyota has a
social responsibility image.

Trumpet-playing Robot Showcase


Toyota showcased their intelligent robot in 200421. That means Toyota wants to
associate their company to high technology image.

Conclusion

20
Japanese Nobel Laureates". Kyoto University. 2009. http://www.kyoto-
u.ac.jp/en/profile/intro/honor/nobel.htm/. Retrieved 2009-11-07.
21
http://news.bbc.co.uk/2/hi/technology/3501336.stm

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