Toyota's Lucky Colors: Red, White, and Blue (and Green)
Topic Strategic and Marketing Planning
Key Words Tactical planning, strategic planning, mission, sustainable competitive advantage, SWOT analysis
InfoTrac Reference A160016211
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News Story 

Analysts expect Toyota to pass General Motors as the world's No. 1 auto company in 2007. Though the Japanese automaker's success is owed in part to groundbreaking engineering improvements and a long-range business model that consistently fires on all cylinders, the company also has been helped by marketing trends—especially trends associated with the colors red, white, blue, and green.

Early on, managers at Toyota realized that the company would need to drape itself in American red, white, and blue if it wanted to compete against America's Big Three automakers. And over the past 20 years, the automaker has done a remarkable job of presenting itself as an American-friendly company. First, Toyota has opened dozens manufacturing and training facilities in the U.S. and employed hundreds of thousands of American workers. Next, Toyota has aligned its marketing communications strategies with the values and aspirations of the American heartland. A recent $300 million marketing campaign for the Tundra scheduled sponsorships of livestock shows, bass-fishing tournaments, and NASCAR races. Moreover, the truck's TV ads featured a narrator—complete with Texas drawl—promoting the Tundra as "the all-new, built-in-America, Toyota truck."

While dressing up in American colors has helped Toyota get a shot at being number one, donning a pair of green shades may be what keeps the company on top once it gets there. Toyota's aim to establish environmental credibility with political and consumer activists produced the best-selling hybrid car in the market: the Prius. The low-emission semi-electric car quickly gained backing from the Sierra Club and wowed Hollywood environmentalist elites. Such favor with political groups has been invaluable to Toyota's continued success, especially in light of the unending vilification GM receives from environmentalists over the gas-guzzling Hummer series.

Beating out GM in 2007 will be a shot heard round the world, and the milestone event is certain to cause a great buzz in the world media. Even so, Toyota can be expected to handle its top-dog status with characteristic temperance and restraint. The Toyota Way places little value on extended self-congratulation.

Questions
1.

Is Toyota's decision to sponsor heartland activities such as sport fishing tournaments and NASCAR racing an example of strategic planning, or is it part of tactical and operational planning? Explain.

2.

What factors in the external business environment do you think influenced Toyota's plans to develop the environmentally friendly Prius hybrid vehicle?

Source David Welch; Ian Rowley; David Kiley, "Why Toyota is Afraid of Being Number One; It's overtaking Detroit--with trepidation. Now, the carmaker is relying on ever-savvier PR to avoid the U.S. backlash it dreads," Businessweek, March 5, 2007 i4024 p42
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