The main purpose of a positioning strategy is to create an effective brand that can easily differentiate a product from other competitors in the market (Kotler & Armstrong, 2010). In other words, the best way to differentiate a product or business is to devise a positioning strategy. This essay briefly compares the positioning strategy between Toyota and Ferrari. They are both popular companies in the automobile industry.
To begin with, low cost and differentiation strategies are used by Toyota as major positioning strategies (Marksberry, 2012). The company has managed to gain control of the automobile market by ensuring a high level of competitive advantage. Toyota also utilizes a broad marketing scope. In arother words, it attempts to meet the tastes and preferences of all customers in the market.
Since the company regularly streamlines the needs of all categories of customers, it has gained a very large share of the automobile market. For instance, in the case of individuals who reside in erratic weather conditions, the company manufactures vehicles that are suitable for such environments.
SUVs and drive trucks (four-wheeled) are typical examples of vehicles manufactured by the company. Clients who are interested in safeguarding the environment can purchase hybrid models such as the Prius. Also, there are scores of model selections that customers can buy from Toyota.
Another critical positioning strategy for Toyota is the pricing factor. A wide range of prices is available for different types of markets and the purchasing power of consumers. Customers who attach value to price can opt for expensive models such as Lexus and SUVs. On the other hand, the low end of the market can buy cheaper models like the Toyota Corolla.
Low cost is also another positioning strategy for Toyota. The company acknowledges the fact that its low cost can indeed assist it in outwitting other close market rivals. Low cost is equally an effective marketing campaign for Toyota, especially in the emerging markets.
To position itself as an affordable seller of automobiles in the industry, Toyota has so far embarked on some major restructuring process. Some of the measures adopted so far include low costs of servicing, effective channels of distribution, proper selection and jurisdiction of suppliers, and lean production.
On the contrary, Ferrari boasts of a prestigious segment of the automobile market (Baglieri & Secchi, 2007). The company has gained a lot of reputation for exclusivity and high performance. The various models fall within the subcategory of a super luxury car.
It is positioned as an expensive product. Besides, high pricing is a key positioning factor for Ferrari. It also stands out as a unique product that cannot be compared to other competing automobile brands in the market. Hence, Ferrari has set up its class in the targeted market.
The ‘race red’ painting for Ferrari is also another positioning strategy for the different car models manufactured by the company. This aspect of color assists the company to differentiate itself from other competitors. The latter attribute is completely different from the hat of Toyota, which uses all types of colors for the manufactured cars.
Ferrari has also managed to position itself through market dominance (Baglieri & Secchi, 2007). One of the profound methods that Ferrari has used to dominate the market is the production of high-quality models. Innovation is part and parcel of the positioning strategy for the company. Finally, the retained earnings policy, working capital, and mobilization of funds are key tenets in the positioning strategy at Ferrari.
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