Slide1: Company Profiles Toyota Motor Corporation Founded in 1937 Headquartered in Toyota City Third largest carmaker in the world Full range of models Four brands 264,000 employees 134 billion US$ turnover Volkswagen Group Founded in 1937 Headquartered in Wolfsburg Fourth largest carmaker in the world Full range of models Eight brands 327,500 employees 99 billion US$ turnover


Five Forces Analysis of the Automotive Industry: Five Forces Analysis of the Automotive Industry Global Competitive Environment Threat of Buyers Threat of Suppliers Threat of Substitutes Threat of Market Entry Automotive Industry Threat of Rivalry Train, public transport or other means of transportation High barriers to entry High capital requirements Contrived deterrence Cost disadvantages Consolidation Single Sourcing Low level of total value added Numerous potential customers Industry policy of rebates More demanding customers Oligopolistic industry Overcapacity Differentiation on basis of functional attributes only temporary


Degree of Internationalization: Degree of Internationalization Firm Globalization


Strategic Orientation: Strategic Orientation Firm Globalization Toyota towards transnationalization Volkswagen Group Striving for global efficiency World market orientation Centralization of core activities Standardization of products with minor local adaptation Shift towards decentralization and increased local responsiveness Synergies in product development across brands High degree of international coordination of the group‘s plants Production of localized cars based on standardized platforms


Overview: Overview Global Marketing Mix 1 2 3 4 Product Price IMC Place Global Marketing Mix


Toyota: Global Marketing Mix Toyota Global Marketing Mix 2 3 4 Complete product range Brand portfolio Toyota Lexus Daihatsu Hino Scion Factor 3 1 High degree of global standardization Region-specific models High product quality Lack of emotionalization Leading in development of ecological technology Market-oriented approach to pricing Price slightly below competition Target pricing Price discrimination across regions Standardized image advertising Adapted product advertising Cause-related marketing Number three in automotive ad spending Highly segmented distribution in Japan Unified distribution elsewhere Seperate distribution of Lexus Good dealer relations


Volkswagen Group: Global Marketing Mix Volkswagen Group 2 3 4 Brand portfolio Volkswagen Audi Seat Škoda Bugatti Bentley Lamborghini Commercial vehicles Factor 3 1 Unique brand identity for each nameplate Complete product range Mostly standardized products with minor adaptations Setting prices with regard to competitors Price discrimination across regions No price competition in emerging markets Strict cost controlling Glocalized communication Emphasis on the European market Brand advertising Emotionalization Development of distribution partners Separated distribution channels for each brand International standardization of dealers Global Marketing Mix


Comparing the Global Marketing Strategies: Comparing the Global Marketing Strategies Conclusion Similarities Development towards a more transnational strategic orientation Intention to extend up-market Future expansion in emerging markets The Volkswagen Group is ahead in respect to internationalization Different regional foci Organic growth vs. acquisitions Volkswagen has a more diversified brand portfolio Differences


Volkswagen Group Brand Portfolio: Global Marketing Mix Volkswagen Group Brand Portfolio emotion functionality sophistication