RECOVERY PLAN FOR TOSHIBA
This research paper seeks to develop a marketing plan and a recovery plan for a new Toshiba product (4K Ultra HD TV) for Toshiba Corporation which is a global brand. For better analysis and development of the marketing plan paper begins with a brief overview of the company profile, followed by analysis of the current marketing situation due to both internal and external forces. In the paper the porters five forces concerning Toshiba Corporation, a detailed SWOT analysis of the company and strategy segmentation, targeting and positioning of Toshiba combined to come up with a robust marketing plan. There is also discussion of the seven marketing mix strategies including pricing, product, promotion, place, people, physical evidence, and processes. Lastly, the paper provides a detailed recovery plan with an attached storyboard on how the promotion of 4K Ultra HD television will be done
The company was formed to mainly design and develop hi-tech innovative electronic products to people of Japan and the world. The company started by creating a rice-cooker for first magnetic recorder in Japan and with time the company expanded its innovation to become one of the most innovative techs Company producing numerous products for customers around the world (STADTLER 2011). Highly innovative products of Toshiba have won it an international reputation as a truly global giant competing in designing and creating innovative products for different categories of people in the world (Lamb et al. 2012).
The company is marked by some significant milestones including “Triniton color television made in 1968, first transistor radio in Japan (1955), Walkman personal stereo(1979), making of Handy cam video camera(1989), making the play station (1994), invention of Blu-ray Disc recorder (2003), invention of PlayStation 3 (2006), making of LCD TV(2005), making of Toshiba BRAVIA (2007) and the unveiling of 3D LCD TV in 2010” (CHANG 2011). All these series of milestones achieved by Toshiba show how robust the company is regarding research, design, and innovation in the creation of electronic products. Ask any random person on the street about Toshiba and they will tell you the giant in electronic manufacturing in the world. .
Current marketing situation analysis
PEST Analysis of Toshiba Corporation
The political environment under which Toshiba operates might be changed any time which has a great impact on the way of operation for Toshiba. Toshiba operates in different countries of the world and the success of the company in these countries depends on the political stability and good will from the countries and therefore any political instability will impact Toshiba operations (Lamb et al. 2012). The booming economy and emerging markets could offer an opportunity for Toshiba to expand its businesses but Toshiba should be careful in idea generation and innovation because competitors also might decide to expand their trade which negatively affects Toshiba (CHANG 2011). Toshiba being an international company, international trade laws could have an impact on Toshiba operations because the rules dictate the way the company markets its products, strikes partnership deals and sales its products.
Toshiba operations are global and therefore any slight change in the world economy either in the form of foreign exchange, global prices, or economic recession affects the operations of the company. In recent times, earthquakes in Japan have heavily impacted Toshiba Corporation because they destroyed some TOSHIBA offices in the country and therefore Toshiba needs to have in place a robust contingency plan to deal with such incidences (CHANG 2011).
Even though Toshiba is a global brand with a good reputation because of good quality services it sells, the company needs to keep updating its customer recovery strategies, address the customer demand related issues and regularly carry out corporate social responsibility activities. Educational development of the society is one of the current trends that many organizations have adopted, and Toshiba should engage in social involvement and activities engaging the society (STADTLER 2011).
Since Toshiba is an electronic company, technology innovation and upgrading should be the company’s ultimate goal every day to give it a competitive edge over its competitors (Boone & Kurtz 2013). Use of new technology will give Toshiba an opportunity to research and meet immediate customer needs.
b). Porter’s five forces
1. Regarding bargain power of buyers for Toshiba products, the threat is high.
2. Risk due to bargain power of suppliers is low
3. Threat of Rivalry from competitor existing firms is high because there are many electronic manufacturing companies
4. Threat from new firms entering the industry is low
5. Threat of product substitution is low
Toshiba faces stiff competition from other industry players such as Samsung, Toshiba, Panasonic and other electronic companies both in Japan and around the world (CHANG 2011).
c). Internal analysis
Toshiba is a strong brand which makes it enjoy the prestige across the whole world, and thus the company has the capabilities to navigate in all the markets (STADTLER 2011). Due to the global brand that the company has established many customers want to be associated with Toshiba products and the company leverages on this to encourage customers to recycle most of its products (CHANG 2011). Employees in Toshiba Company are involved in product planning, and since the customer product needs change with time, the company keeps adjusting its product recovery strategies to serve customers in the best way possible.
Differentiation is one of Toshiba's key strongholds that set it aside regarding high quality and moderately priced products. The company offers a choice for everyone by offering a variety of products. The quality of products by Toshiba is superb, and their supply chain activities are well organized and extensive.
Toshiba has a quality control program which monitors consumers’ response to Toshiba product and services to help improve the quality of products. There are many ways provided by the company on how a customer can contact and interact with technical support including emails, skype, call center, letters and other avenues that are enlisted on Toshiba’s website. Toshiba also offers repair and support services to customers and more so, the company has created automated tutorials, updates section and news alerts on their website.
Toshiba offers high prices that are very competitive in nature and is based on the principle of pay higher and get a better deal and more for the same (CHANG 2011). Their electronic products especially televisions are advertised to be of superior quality, and therefore customers are willing to pay higher prices to obtain the products. The company also offers more value for the same amount through promotional gifts and the quality of the product.
Toshiba engages in rapid innovation to keep up with the rest of the world and for this reason, the company is famous for it being one of the companies offering highly innovative products to the customers (CHANG 2011). The company invests heavily in Research and Development of new products to meet the ever-changing needs of customers.
Regarding customer service, Toshiba is one of the best because at the corporate level the company uses the internet to monitor all of its stores and how they perform (CHANG 2011). Through the internet, customers can directly relay their recovery to stores, suppliers, corporate and stores can also easily coordinate. Customers can visit Toshiba's website and download drivers or purchase new products from the comfort of their homes. Resell stores can also log in to the company's website and upload financial performance information on which items are selling better (Lamb et al. 2012).
The main strength for Toshiba is the ability to design and develop innovative quality products and innovations in the company has become the mainstream culture. They call themselves the company of first. Toshiba is also successful in handling different markets including computer, electronic video games, and televisions (Lamb et al. 2012). The company is also strong in its strong brand image, leadership in make share, loyal customers, worldwide reputation, high technology, synchronized supply chain for its products; high quality products, strong research and development plan, motivated workforce, and pioneer of innovation and creativity in electronic manufacturing industry (Lamb et al. 2012).
Ø The company’s products are made using expensive hardware, sometimes products produced and released into the market turn out to be faulty thus damaging Toshiba’s reputation.
Ø Overconfidence in the company which misleads them to not paying attention to competitors
Ø Competitively high prices for the products
Ø Insistence on their format which limits the company's innovation scope
Ø Declining competitiveness of Toshiba products mainly due to substitutes from competitors
Ø Customer satisfaction complaints
Ø Operating in a financial position that is much overleveraged.
Ø Electronics industry is projected to grow by more than $200 billion by 2017Increased demand in technology products across the globe
Ø New market opportunities from emerged and developing countries
Ø Global purchasing power continues to increase
Ø Continuous growth in the sectors that Toshiba operate
Ø Acquisition deals in good performing markets
Ø Emergency of China is the second largest economy in the world
Ø Continuous innovation in the world of technology
Ø Currency exchange risk due to fluctuations
Ø Cheaper technology that competitors use giving them a competitive edge regarding pricing
Ø Threats due to acquisition, alliances and joint ventures due to unpredictability
Ø Unpredictable demand and supply conditions globally
Ø Continued increases in prices of raw materials
Ø Counterfeit goods
Ø Piracy and threats from intellectual property rights
Ø Price wars
Ø External factors
Ø Brand and technology imitation
Ø Short product cycles
The mission of Toshiba is to become a leader in global provision of connected consumer electronics, entertainment, and services
· To provide quality recovery services to our customers globally both small and medium sized
· Increase the sales by 20 percent of Toshiba innovative products while delivering value to customers and partners
· Make sure that customers are up to date with the latest technology products produced by Toshiba
· To reduce the effect of middlemen and interruption in the supply of our products so as to sell products to customers at reduced prices of up 15 percent.
· To attract at least 1 million new customers to buy Toshiba products while maintaining the existing customers
Segmentation, targeting and positioning
Toshiba will develop diverse television types ranging from BRAVIA, LCD, LED and 4K Ultra HD televisions in different sizes so as to cater for the diverse needs of customers in the market (Boone & Kurtz 2013). The 4K Ultra HD television will be fitted with Android services so as to meet the customer needs of Android services.
Toshiba will implement different strategic plans to expand the operations in the development of new technology in the electronic products (Boone et al. 2013). For instance, new versions of phones, television designs and integration of Android devices in HD television and other new designs of domestic electronic products will be introduced into the market.
Japan, America, Europe and China are the largest markets that Toshiba is targeting for the new 4K Ultra HD television because of the higher purchasing power of people living in these markets (Boone & Kurtz, 2013). These markets are segmented with some slight differences in purchasing power, and therefore the company will increase more stores in these regions.
Toshiba uses demographic market segmentation strategy because the company offers its products and services to diverse people in the world (Lamb et al. 2012). The company will focus on women markets because women form almost half of the sales in consumer electronics and furthermore, they influence more than 80 percent of Toshiba purchases.
Toshiba will be targeting all the sectors of the society with its new 4K Ultra HD television, and more the company will target vertical markets (Boone & Kurtz 2013). Different sectors of the society will be differentiated according to the purchasing power which will influence the pricing decisions.
Tactics and action
Toshiba is a leader in television, motion picture, music, computer entertainment and online businesses. The product that best describes Toshiba leadership is the new 4K Ultra HD and full HD television series that give customers a new picture and HD theater experience. The product has 4KX-Reality PRO, TRILUMINOS and it supports HEVC codec. Therefore all these features are meant to appeal to customers and thus continue building Toshiba’s reputation.
Based on the 4K Ultra HD television, the price by Toshiba depends on the size and quality of the product. The pricing strategies use product bundle pricing, product line pricing, and market skimming, and together they produce the final price of the product (Boone et al. 2013). The price for Toshiba television ranges from $20 to $30,000. The company typically starts by charging a higher price for new products and gradually lowers it with time.Places
Toshiba will sell its products at different places such as supermarkets, K-Mart, Walmart, resell stores and other Toshiba dealers. Promotion
Toshiba will promote its new product through advertisements via direct mail, magazines, newspapers and Television commercials across different countries in the world so as to reach out to new customers (Stadtler 2011). The company will also promote its products through sponsorship deals with sports teams and customers that will buy the 4K Ultra HD television in cash within 24 months to receive a 10% discount. Process
Customers can place their order online on the company’s website and get the product with some shipment fee depending on the customer’s location.Budget
To fully and adequately implement the marketing plan for the 4K Ultra HD television an investment of 4.1 million dollars will be required. 2 million dollars will be used on TV and celebrity advertisement, 700, 000 dollars will be used for organizing events, 550,000 dollars on magazines, 450, 000 dollars will be spent on flyers and promotions such as discounts and 400, 000 dollars will be used in monitoring to ensure effective implementation of the marketing plan. Control
Monitoring and evaluation of the marketing plan implementation success will be done throughout the implementation process. The key performance indicators during the evaluation will be sales and revenues generated over the period of implementing the plan. Feedback from the consumers will also be collected monthly and in case there will be no improvement in the sales, a contingency plan will be implemented.
Toshiba is a large corporation with a global brand that makes it necessary to have a competitive marketing strategy. Despite the company beginning as a research institute, it has grown to become the giant manufacturer. The company is faced with some external risks including changes in the international law, competition from rival firms in the industry, cheap technology and many other factors. When launching a new product, it is important for Toshiba to assess various factors and the marketing plan designed for the launch of new 4K HD television follows exactly the marketing model. If the company fully follows the plan, the marketing strategy will succeed.
Part 2: Recovery Plan
Toshiba will use the perceptual map to determine how unique the 4K Ultra HD television is superior regarding benefits and advantages against the major competitors in the electronic industry (Hunt 2014). However, Toshiba will focus on two main rivals which are Samsung and LG because they are also global. The marketing campaign will target all the people, and Toshiba will insist on quality to win the attention of customers (Hunt 2014).
The new product, 4K Ultra HD TV will launch and advertised to the companies target audience and in this case, we will target the whole population across the world. The launch of the new product will be done through cinema advertisement because of the clarity of vision that the cinema provides (Hunt, 2014).
The information plan will involve creating awareness of the existence of the new television model in the market because this is a new product and people must be aware first by alerting them via the media (Hunt, 2014). After getting the people' attention, the marketing team will place advertisements on other types of media inviting people to visit Toshiba dealers and other outlets to view how the television looks like in reality. This will capture people's interest because customers would want to have a vision of the new product.
The marketing team will proceed to do local launches in several major cities, and digital marketing team should also launch an online campaign that excites people to the new television (Hunt, 2014). Several launches in cities will be done by the regional marketing manager to show how crucial and powerful the product is to customers. Then lastly, media advertisements will be accompanied with clear contacts for customer inquiries and local advertising for the first customers to receive a 10 percent discount on every television they purchase (Ferrell et al. 2012). Advertisement through various media channels will target every person in the world across different market segments (Ferrell et al. 2012). This will be achieved by having different sizes of the televisions ranging from low priced ones to high-priced televisions to cater for all the customer needs.
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