Toyota Brand Analysis Essay Example | Topics and Well Written Essays - 1000 words

Toyota Brand Analysis - Essay ExampleFortification - the brand should carry a consistent image over time to beef up its place in the consumers mind and develop a special relationship with the consumer. Brand extensions can further fortify the brand, but only with related products having a perceived fit in the mind of the consumer.A company may have many brand names, but each group should fit hale together. When Toyota wanted to compete in the luxury car market, a new brand called Lexus was created. This avoided muddying the established Toyota brand name, which represents value and economy, and removed any possible disallow preconceptions about the Lexus name being cheap.The divergent fortunes of two automobiles made by the same manufacturer offer an unintended study of the power of brand scheme to alter behavior. Since 1989, both the Toyota Corolla and the Geo Prizm have been made by New United Motor Manufacturing Inc. (NUMMI), a joint venture of General Motors and Toyota. While the two cars atomic number 18 virtual twins, the Corolla has had consistently knockouter sales despite a higher price. How come The strength of Toyotas brand allowed it to charge more, says The Economist. Buyers thought a Toyota would be superior to a GM car in the same class, and so happily paid more.The effect of brand equity on gain ground and growth is striking. ... Buyers thought a Toyota would be superior to a GM car in the same class, and so happily paid more.The effect of brand equity on profit and growth is striking. While both cars cost the same to make-about $10,300-Toyota sold 200,000 Corollas to dealers at $11,000 each, while GM managed to move only 80,000 Geo Prizms at $10,700 between 1990 and 1994, The Economist notes. The ending Toyota made $128 million more than GM in operating profits from NUMMI, while its dealers made $107 million more than those of GM from the plants products.Toyota Motor Corp. (TM ) is on grand to be the worlds No. 1 auto maker by 2008. It produces nearly one of every six cars sold in the U.S., including nine models in the southeasterly and Midwest, where it employs 32,000 Americans. Even New York livery cab fleets, once largely made up of leathery Lincolns, now feature Toyotas Prius, the hit hybrid taking coastal cities by storm.Toyota largely remains terra incognita to American investors, while GM can still attract buyers even as it flirts with bankruptcy. Toyota stock doesnt have the mind share of GM or Ford, says John M. Novak, an auto analyst at Chicagos Morningstar Inc. Theres a perception that you cant invest in it because its a Japanese company -- that you would require a special account. ( moving in week) Toyota StrengthsIn 2003 Toyota knocked its rivals Ford into third spot, to become the Worlds second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors includin g a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of