There is no doubt that the product life cycle analysis is critically important for the marketing analysis of any company. As for the Toyota Camry car model of Toyota Motors Corporation, the product is at the maturity stage of the life cycle. It deals with the fact that the product was introduced to the market long time ago, namely in 1979 (Ogbac). Since the time the car model was developed, there were many variations and improvements of Camry offered to the target audience. Consequently, Toyota Motors Corporation has managed to remain at best-selling car on the US market (Office of Energy Efficiency and Renewable Energy).
It is important to lay the stress on the fact that the maturity stage of product lifecycle is the most beneficial for Toyota Motors Corporation. The product is very profitable, has many loyal customers and constant market share. At the same, the product is well-known on the market and huge financial expresses on marketing and advertisement are not needed. The main goal for Toyota Motors Corporation in terms of Toyota Camry car model is to maximize the time of the product being in the maturity stage in order not to move on to the decline life cycle stage.
Consumer Adoption Cycle
Analyzing the consumer adoption cycle, it is important to say that the Toyota Camry car model is at the adoption stage of the cycle process. It means that the Camry product is well-known enough for the target audience. They do not need to get acquainted with the product type and investigate it. The target audience has already passed the stages of product awareness, interest, evaluation and trials. The customers are motivated enough to buy Camry vehicles. The adoption stage of the cycle process is the most beneficial for the Corporation. It is the stage when the most of profits are received by the company for the definite product. At the same time, the least investments into Camry product have to be done. Thus, the company should maintain the effective product performance on the adoption stage of the cycle process.
One of the elements of the marketing mix is the distribution strategy. Toyota Motors Corporation is using indirect distribution strategy for selling its products, including Camry car model. Toyota is selling its products with the help of intermediaries that are connecting the manufacture and the target user of vehicles (Banikapoor). Toyota Corporation is using dealers in order to distribute their products all over the world. It is a one level distribution channel strategy.
The chosen distribution strategy has both advantages and disadvantages. First of all, indirect distribution strategy gives an opportunity to widespread the vehicles of Toyota Company all over the world. In addition, it is one of the least expensive ways, because the intermediary is also financing the distribution process. One the other hand, using the intermediary, the company is acquiring less control over the distribution process. In addition, the distribution strategy becomes less flexible and any changes are hard to implement fast. However, it is important to say that the chosen one level distribution channel of Toyota Motors Corporation is very effective, because it fits the peculiarities of automobile business.
Thus, taking everything into account the conclusion can be done that Camry car model has very beneficial situation on the market. It is on the maturity stage of life cycle and at the adoption stage of the cycle process. These positions of the product are most developed and profitable for the company. At the same time, they require the least investment and management control from the company. In addition, Toyota Motors Corporation has chosen an effective distribution strategy.
- “Celebrating the Arrival of the Eighth Generation of Toyota’s Popular Four-Door”. Ogbac, S. January 3, 2017. http://www.motortrend.com/news/toyota-camry-history-america-best-selling-sedan/ Accessed 14 November 2017.
- “Distribution: Keeping it simple, the ‘Toyota’ way!” Banikapoor. May 16, 2016 https://mpk732t12016clustera.wordpress.com/2016/05/16/distribution-keeping-it-simple-the-toyota-way/ Accessed 14 November 2017.
- “Distribution channels, types and their importance”. Vkbandar. May 17, 2016. https://mpk732t12016clusterb.wordpress.com/2016/05/17/distribution-channels-types-and-their-importance/ Accessed 14 November 2017.
- “Fact #611: February 22, 2010 Top Ten Best Selling Cars and Light Trucks”. Office of Energy Efficiency and Renewable Energy. 2010. https://energy.gov/eere/vehicles/fact-611-february-22-2010-top-ten-best-selling-cars-and-light-trucks Accessed 14 November 2017.