Toyota's marketing strategies targeting baby boomers

Marketing

Toyota's problem, as discussed in the article, is two-fold: first, there is failure on the company's part to monitor the (1) shifts in demographic trends of it consumer market and (2) the changing buying behavior and values of its target market. As was pointed out by the writer of the article, Toyota has lost 'contact' with the baby boom generation, individuals who are in the middle age, who happen to be the car company's target market, since it is the baby boom generation who are the most likely consumers of car products (and accessories). Its failure to account for the dominance of the baby boom generation in the consumer market results to the second problem of Toyota, which looks into the changing buying behavior of its customers. With the changing nature of advertising and marketing, cars should be marketable to the consumers; otherwise, this would not become a "hit" in the market. An example of this failure to capture the customers' buying behavior is the 'ECHO flop' discussed in the article, where the car's 'extraordinary' design made it look "goofy" and inappropriate for the baby boomer's babies.

The time wherein the report on Toyota's dilemma occurred during a period where rapid changes in the marketing environment in the country were happening. This is because 1999, being the year prior to the emergence of the new millennium, is a year where sophisticated and savvy-looking design and images of products became predominant. Laptops and computer notebooks were changing its colors and deviating from its standard black color, and almost every electronic device adopted the color of metallic silver or silver gray in order to illustrate a "futuristic design" -- that is, portraying the image that it (the product) is the "product of the future." Thus, there were changes in the consumption behavior of American society: a sleek, sophisticated, and savvy design was preferred over the funky styles known to be popular among the boomer's babies. Again, Toyota's failure to adapt to these changes in the marketing environment in the consumer market of America led to eventual decrease in sales and patronage of its car products and models.

The article cites two car companies who have, more or less, adopted strategies in order to buffer the effects of demographic shifts and changes in consumer behavior in the car sales market. These car companies are Nissan (also an Asian brand like Toyota) and Volkswagen (a European brand). It is evident from the article that these two car companies were able to create marketing strategies in order to keep up with the demographic and cultural changes of their respective target markets. Nissan was able to create car designs that suit the taste of its market, while Volkswagen adopted a "repackaging" strategy, targeting a wider consumer market from the middle-aged consumers (30s-50s) to the young adult- up to the middle-aged consumers (20s-50s). Faced with a stiff competition from the two companies, Toyota must adopt either one of these two, or perhaps both, strategies in order to keep up with the 'numbers' game in sales and marketing of Toyota cars.

One of the primary bases of Toyota for using the boomer's babies are (1) the consumer market's capability to buy or be enticed to buy a car and (2) dependence on its loyal customers over the years. The first rationale or basis illustrates the nature of consumers who are car-buyers: since it is the adult-middle-aged customers who have disposable incomes big or sufficient enough to buy a car, then they are the most logical target market that Toyota, or any car company for that matter, should center on. The second basis works on the assumption that Toyota has a strong following from its former customers -- customers who were satisfied in the quality, design, and make of Toyota cars, they will also be, most likely, the people who will buy Toyota cars in the future. Thus, Toyota patrons must always be kept up-to-date with the latest product releases, car exhibits, and other activities of the company. Its decision to widen its target market starting in the year 1999 (the year the article was published) demonstrates how the notion of possession of disposable incomes have also been extended to include young adult workers who are also financially capable of buying Toyota cars and products.

Over-all assessment of Toyota's marketing strategy is strategy, especially since it fares better in terms of pricing and product quality compared to its competitors, whether be they an Asian, American, or European car brands. Its weak points, however, is its promotional strategy, which is still vague and ineffective in informing the people about the company's target audience (in introducing the said promotional strategy).