Marketing Excellence learned this market wanted more personalization, the company now builds the car "mono-spec" at the factory, with just one well-equipped trim level, letting customers >> Toyota choose from dozens of customization elements at dealer- The world's largest automaker, Toyota has come a ships. Toyota marketed the Scion at music events and long way in its nearly 80-year history. The company has showrooms where young people feel comfortable launched its first passenger car, the Model AA, in 1936. hanging out and not a place where they just go stare at a copying the body design of Chrysler's landmark Airflow car," said Scion Vice President Jim Letz. and the engine of a 1933 Chevrolet. Toyota then suf- Another big reason behind Toyota's success is ts fered several challenges, including a financial crisis mastery of lean manufacturing and continuous improve- in 1950. However, when consumers wanted smaller.ment. Its plants can make as many as eight models at more fuel-efficient automobiles during the 1973 oil cri- the same time, bringing huge increases in productivty sis, the company responded. The Toyota Corona and and market responsiveness. The company also relent- Toyota Corolla offered basic foaturos and actod a tho lessly innovates: a typical Toyota assembly line makes company's new entry-level cars. Toyota also launched thousands of operational changes in a year. Employees the Cressida, with the fuel efficiency consumers desired see their purpose as threefold: making cars, making cars but space and amenities like air conditioning and better, and teaching everyone how to make cars better. AM-FM radio The company encourages problem solving, always look- During the 1980s and 1990s, Toyota gradually added ing to improve the process by which it improves all other more models ranging in price, size, and features. In processes 1982, the company introduced the Camry-a four-door, Toyota has integrated its assembly plants around mid-sized car that offered more space than the Corona the world into a single giant network that can custom- and became the best-selling passenger car in North ize cars for local markets and shift production quickly to America. The first of the company's popular SUVs, the meet surges in demand from markets worldwide. The 4Runner, appeared in 1984 looking and acting much like company is thus able to fill market niches inexpensively a pickup truck. It later morphed into more of a passenger as they emerge, without building whole new assembly vehicle and led the way for the Rav4. Highlander, and operations. "If there's a market or market segment where Land Cruiser. Toyota also introduced a full-sized pickup they aren't present, they go there," said Tatsuo Yoshida, truck-today's Tundra-and several sporty and atford- auto analyst at Deutsche Securities Ltd. able cars that targeted young adults. Over the years, Toyota automobiles have consistently In 1989, it launched Lexus, its luxury division, promis ranked high in quality and reliability. In 2009 and 2010, ing an unparalleled experience starting with white-glove however, the company recalled more than 8 million cars treatment at the dealership. Toyota understood, however, for potential perceived problems ranging from sticking that each country defines luxury differently. In the United accelerator pedals to sudden acceleration to software States, it meant comfort, size, and dependability: in glitches in the braking system. The Lexus, Prius, Camy. Europe, attention to detail and brand heritage. As a result. Corolla, and Tundra brands were all affected. Next, the company varied its advertising depending on the Toyota lost billions of dollars when an earthquake and country and culture. tsunami in Japan destroyed the company's plants and In 1997. Toyota launched the Prius, the first mass- parts suppliers in 2011. TMC President Akio Toyoda said, produced hybrid car, for $19,995-between the Corolla "We have faced many challenges since 2009, but have and the Camry. The company's keen focus on develop learned valuable lessons including the need for Toyota to ing a clean-energy car was brilliantly timed. Before the maintain sustainable growth." second-generation Prius hit showrooms in 2002, deal- Despite these challenges, Toyota recouped its losses. ers had already received 10,000 orders. Over the next Its strong focus on hybrid vehicles has proved profitable decade, Ford, Nissan, GM, and Honda followed the Prius and helped the company rebound. It sold its 4 millionth with models of their own unit in 2012 and plans to continue to innovate hybrics, Toyota also started creating vehicles for specific believing there are many more gains we can achieve target groups, like the Scion for young adults. Having with hybrids." Today, Toyota offers a full line of cars for the global market, from family sedans and sport utility 2. Has Toyota done the right thing by manufacturing a vehicles to trucks and minivans. In 2013, the company car brand for everyone? Why or why not? earned more than 22 trillion yen (or $217 billion) and sold 8.87 million automobiles, edging past General Motors to Sources: Martin Zimmerman, Toyota's First Quarter Global Sales Beat GM's Preliminary Numbers. Los Angeles Times, April 24, 2007. Charles Fahman, "No Situfaction at Toyota, "Fast Company, December become the world's largest carmaker. 2006-January 2007, 82-90, Sunt Brown, "Toyota's Global Body Shop Fortune February 9, 2004, p. 120, James B. Theon. "Ford Down Toyota Aims for No. 1. Automotive News Feb 2 Questions 2004 1 Brun Benner and Chester Davin Can Anything Stop Toyota? Bek November 17.2005, pp. 114-22 Tomoko Honka, Toyota Counting Costs of Recal Woes, Associated 1. Toyota has built a huge manufacturing capacidere, Toyota Focal Count: $2 billion, nito. Amoney con .com, February 4, 2010, Metoclood Press Pres March 16, 2010, Word Motor Vehicle Praction by Manufacturer 10. 2009, Chris ity that can produce millions of cars each year Toyota Seks Meet Cara despite China Stumowy 21, 2013; Trufia Team .apan Ouske, Turani for a wide variety of consumers. Why was it able toke Hry To On Toyota Forte Art 8, 2011 Mke Parey, Toyota Calls to Study Bideto Automotive Future Ww Street Jom September 30, 2013. Toyota Motor Corporation 2013 Amal to become so much bigger than any other auto Report www.toyota.com manufacturer