Channel and Pricing Strategies
Channel and pricing Strategies
University of Phoenix
Date Due: 30, August 2010
Channel and pricing Strategies
Team C examines the channeling and pricing strategies of the Toyota Motor Corporation for the team’s product launch. The assignment explores the appropriate channel strategy for both the domestic market as well as the international market through direct exporting channels. The team justifies Toyota international market through extensive research on the chosen product. According to Toyota New Release “Toyota Motor Corporation (TMC) announces that cumulative sales in Japan of its hybrid vehicles have topped the one million mark, while more than 2.68 million units have been sold globally as of July 31, 2010” (Sales in Japan of TMC Hybrids Top one Million Units, 2010, p. 1). Examining a set of logistics objective, Team C is ready to design a logistics system that will minimize the cost of attaining these objectives. The major logistic functions include channeling the product, pricing, and the justification for the team’s choice for both the domestic and international markets (Armstrong & Kotler, 2009).
Justification for choice of international market
Team C chose Japan as its international market because of its increase in production, sales, and exports. Japan has been supportive of Toyota products, selling over millions of units within the past year. The reason for this increase is because of the availability of cars that Toyota offers, providing superior gas mileage and a compact structure. For example, cumulative sales in Japan of its hybrid vehicles have sold more than half of the units produces globally, which marks more than one million vehicles sold (Toyota News Releases, 2010). In July alone, Toyota has seen a major increase in the production, sales, and exports on an average of 14.1% (Toyota News Releases, 2010). The sales in Japan are at its 12th consecutive month of increase with Lexus-vehicle sales at 37.1%, and the share market at
University of Phoenix
Date Due: 30, August 2010
Channel and pricing Strategies
Team C examines the channeling and pricing strategies of the Toyota Motor Corporation for the team’s product launch. The assignment explores the appropriate channel strategy for both the domestic market as well as the international market through direct exporting channels. The team justifies Toyota international market through extensive research on the chosen product. According to Toyota New Release “Toyota Motor Corporation (TMC) announces that cumulative sales in Japan of its hybrid vehicles have topped the one million mark, while more than 2.68 million units have been sold globally as of July 31, 2010” (Sales in Japan of TMC Hybrids Top one Million Units, 2010, p. 1). Examining a set of logistics objective, Team C is ready to design a logistics system that will minimize the cost of attaining these objectives. The major logistic functions include channeling the product, pricing, and the justification for the team’s choice for both the domestic and international markets (Armstrong & Kotler, 2009).
Justification for choice of international market
Team C chose Japan as its international market because of its increase in production, sales, and exports. Japan has been supportive of Toyota products, selling over millions of units within the past year. The reason for this increase is because of the availability of cars that Toyota offers, providing superior gas mileage and a compact structure. For example, cumulative sales in Japan of its hybrid vehicles have sold more than half of the units produces globally, which marks more than one million vehicles sold (Toyota News Releases, 2010). In July alone, Toyota has seen a major increase in the production, sales, and exports on an average of 14.1% (Toyota News Releases, 2010). The sales in Japan are at its 12th consecutive month of increase with Lexus-vehicle sales at 37.1%, and the share market at
References: Armstrong, G., & Kotler, P. (2009): Marketing: An Introduction (9th Ed.). Upper Saddle River, NJ: Pearson/Prentice Hall. Kotler, P., & Keller, K. L. (2007): A Framework for Marketing Management (3rd Ed.). Upper Saddler River, New Jersey: Pearson/Prentice Hall. Perreault, W. D., & McCarthy, E. J. (2006): Basic Marketing: A Global-Managerial Approach (15 Ed.). New York, NY: McGraw Hill Companies. Sales in Japan of TMC Hybrids Top 1 Million Units (2010): Toyota New Releases. Retrieved from http://www2.toyota.co.jp/en/news/0/08/0805.html TMC Announces Results for July 2008 (2008): Toyota New Release; Retrieved 27, August 2010. Retrieved from http://www2toyota.co.jp/en/new/0/08/0827 Why is Toyota Successful? (2010): Toyota Production System; Retrieved 27, August 2010. Retrieved from http://www.toyoland.comm/toyota/production-system.htm1