Toyota- Successful Distribution Channel System

Screen Shot 2014-04-30 at 7.57.13 AMWe all knew that the Toyota is a car brand from Japan, and we also knew the Toyota’s car represented a concept with lower price and high quality, but how can Toyota made the car’s price so low and also has low percentage in car’s problems? Of course, Toyota is not only use distribution channel system, logistics and location as a marketing strategy, but those elements of marketing strategies actually play a important role in Toyota’s marketing strategy in Australia. Therefore, distribution channel system, logistics and location are the topic that will discuss at the following paragraphs.

Distribution Channel System

The Toyota Australia is a wholly-owned subsidiary of Toyota Motor Corporation in Japan. According to the report from Toyota Australia (2014), the corporate headquarter is located in Port Melbourne and manufacturing is in Altona, Victoria. Sales and marketing operation are located in Woolooware Bay, New South Wales. Due to the facts, Toyota has the main operation system in Australia, such as sales, marketing , product planning, corporate service, manufacturing and purchasing. Moreover, the Toyota’s car are sold either import or manufactured in Australia. Therefore, the distribution channel system of Toyota Australia can give more efficiently and more effectively for the sellers and customers.In addition, an other benefits for Toyota is that the distribution channel system can decrease the cost for the company and also have more convenience for the customers. However, the manufacturing of Toyota’s car in Australia will end in 2017.According to the news from News.com.au (Dowling 2015), due to the strong Australia dollar, high labour rates and the low import rate, the Toyota will close its Australian factory in 2017 after huge operation lost during the past ten years. Nevertheless,  it is just only for the manufacturing in Australia not other operation systems such marketing and sales. Therefore, is it really a matter in closing the factory in Australia? we will find out after 2017 and to see what will happened next.

 

Logistics

Despite the Toyota will close the Australian factory in 2017 and needs to import the vehicle from another country, but the Toyota still has advantage in this transformation. The Australia government signed free trade agreement with Japan and Korea in 2014, therefore, the Toyota Australia supports the free trade agreement. According to the report from Toyota Australia ( 2015), the Japan -Australia Economic Partnership Agreement (JAEPA) was signed in 2014 and came into effect on 2015. In terms of after 2015 Toyota Australia has free trade with Japan and also the impact of closing the Australian factory will decrease to the lower risk for the company.

Location

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The Toyota dealership location in Australia. Source: Toyota.com.au

 

In Australia, Toyota has over 200 dealership around the the country. Therefore, for costumers this is very easy to find a dealer near by the neighborhood. Furthermore, most of the Toyota dealer locations are located by the population percentage of Australia. Due to the facts, Toyota wants use a strategy with many dealership around the country that can attract more costumers to purchase the Toyota’s vehicles. Maybe you can find the Toyota’s dealer just drive five to ten minutes from your home.

In the conclusion, although Toyota is not luxury or fancy car brand, but Toyota actually created their own marketing strategy in many sectors. Of course, the distribution channel system is one of the market strategies in the Toyota’s business and also Toyota made amazing work on that.  Maybe, Toyota will be top car selling brand in the Australia after 5 or 10 years.

 

By Bin-An Hsiao

Username: binanhsiao

E-mail:bhsia@deakin.edu.au

Student ID:214321149

References list

Dowing, J 2015, ‘ Toyota Australia posts $194 million profit after announcing factory shutdown in 2017’, News.com.au, 19 June 2015, retrieved 14 May 2016, < http://www.news.com.au/finance/business/manufacturing/toyota-australia-posts-194-million-profit-after-announcing-factory-shutdown-in-2017/news-story/ddd8db2bedfa83c6af0c935ea8bdb372 >.

Toyota, 2014, Toyota Ausrtalia’s 2014 Sustainability Report, retrieved  14 May 2016, < http://www.toyota.com.au/toyota/sustainability/cms/download/Toyota_Report.pdf >.

Toyota, 2015, Toyota Ausrtalia’s 2015 Sustainability Report, retrieved  14 May 2016, <http://www.toyota.com.au/toyota/sustainability/cms/download/2015/Toyota_Full_Report.pdf>.

Toyota to end car production in Australia by 2017- corporate, 2014, YouTube, retrieved 14 May 2016, < https://www.youtube.com/watch?v=_aPaI8th8Ec >.

 

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