Promotion Strategy Between Toyota and Ford in Canada,year 2006

2006 Promotion Strategies

Toyota Canada Inc . and Ford Motor Company of Canada

A Comparison

Research For

BA399 - Research Project

Presented to

Lincoln University

By

________________

November 2006

Outline

I . Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - 4

A . Definition of Terms - - - - - - - - - - - - - - - - - - - - - - - - - - 4

B . Purpose of the Study - - - - - - - - - - - - - - - - - - - - - - - - - - 5

C . Delimitations

- - - - - - - - - - - - - - - - - - - - - - - - - - 6

II . Review of the Literature - - - - - - - - - - - - - - - - - - - - - - - - - - - 7

III . Problem Statement - - - - - - - - - - - - - - - - - - - - - - - - - - - 8

A . Problem Statement - - - - - - - - - - - - - - - - - - - - - - - - - - - 8

B . Sub - Problems - - - - - - - - - - - - - - - - - - - - - - - - - - - 8

IV . Research Objective - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9

A . The problem - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9

B . The Scope of the Problem - - - - - - - - - - - - - - - - - - - - - - - - - - - 9

C . Objectives - - - - - - - - - - - - - - - - - - - - - - - - - - - 9

V Research Methods Procedures - - - - - - - - - - - - - - - - - - - - - - - - - - 10

VI . Collected Data - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12

A . Background Information : Promotion - - - - - - - - - - - - - - - - - - - - - - 12

B . Promotion Strategies - - - - - - - - - - - - - - - - - - - - - - - - - - - - 14

1 . Toyota Canada Inc . - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16

2 . Ford Motor Company of Canada - - - - - - - - - - - - -- - - - - - 22

VII . Report of Findings - - - - - - - - - - - - - - - - - - - - - - - - - - - - 31

VIII . Analysis of Findings - - - - - - - - - - - - - - - - - - - - - - - - - - - - 33

IX . Conclusions - - - - - - - - - - - - - - - - - - - - - - - - - - - - 36

X . Bibliography - - - - - - - - - - - - - - - - - - - - - - - - - - - - 38

XI . Appendices - - - - - - - - - - - - - - - - - - - - - - - - - - - - 39

A . Appendix A : Toyota Graduate Program Allowance - - - - - - - - - - - - - -39

B . Appendix B : Sample of Toyota Parts Service Promos - - - - - - - - - - 40

I . Introduction

A . Definitions of Terms

For purposes of this the following terms will be used and they are presented here with their definitions . The terms were taken from the official Web sites of the two companies

Toyota Canada Inc (TCI ) - the car company that manufactures and distributes the

Toyota and Lexus vehicles

Ford Motor Company of Canada - the car company that manufactures and distributes the Ford line of cars , vans , trucks and the Lincoln vehicle

Promotion Strategies - these refer to the techniques or strategies used by companies

in marketing and promoting their products and services

National Sales Promos - these are the strategies used to promote their products and

services to clients from across the country

Local Sales Promos - these are the strategies used to promote their products and

services to clients from certain regions or areas across the country

Graduate Program - these are the strategies used to attract young professionals especially the new graduates to acquire their own cars

Mobility Program - this is a promotions strategy used by both Toyota and Ford to help cover the costs of installing adaptive driving aids or mobility assistance equipment , for the physically challenged or those who have physical handicaps who acquire a new Toyota vehicle

Fleet and Rental Program - these are incentives to companies who choose to buy a certain car brand for their fleet

B . Purpose of the Study

This study aims to make a comparison between the promotions strategies of two (2 ) big automobile competitor companies in Canada and even around the world . These are Toyota Canada Inc (TCI ) and Ford Motor Company of Canada . Toyota Canada Inc . is the exclusive Canadian distributor of Toyota and Lexus vehicles and Toyota lift trucks . Its head office is in Toronto and its regional offices are in Vancouver , Calgary , Montreal and Halifax . Ford Motor Company of Canada on the other hand is the distributor of the Ford cars and vans , trucks , crossovers and the elegant Lincoln cars

The comparison will be based on the basic similarities and differences of the strategies being used . An evaluation will be made as to the efforts being placed by the companies on their promotions programs and the role that these efforts play in their overall performance . Being among the largest companies in the world must be something that is achieved through some organized and systematic management of their businesses , and promotions work is one of the ways to do this

C . Delimitations

The will only make a comparison between the promotions strategies of the two car companies and make a simple evaluation of the strategies in terms of their appeal and effectiveness

It will not try to make recommendations on how to improve these strategies . Also , the comparisons will only be based on the available data and information that is found in the Web sites of the two companies . Specific and actual financial data or statistics may not be provided as these are not found in the Web sites . The information from the sites , even if it is considered latest information , is usually for general purposes and not for the purpose of making in-depth analysis of the companies ' financial performance

II . Review of the Literature

Available literature that is almost complete can be found from the official Web sites of the two car companies . This is the information source mainly used for this . Additional sources include those that provide support information like books on marketing and promotions business management , economic development as well as sources from the internet that provide information about research methods

All of the promotions strategies were taken from the information from the Web sites . The two companies have their own company Web sites which contain updated information for the use of the general public . The rest of the information is taken from online sources and scholarly references like books

Aside from the two company Web sources , among the subject matters researched from the other sources of information are the discussions on promotion strategies (sources are marketing Web sites , management and economics books , discussions on the issue of globalization (sourced from the IMF publications and university lectures

III . Problem Statement

A . Statement of the Problem

The will identify and compare the promotions strategies of the two companies , and determine the role that they play in their general performance . The strategies will also be evaluated in terms of their adopting the latest changes and developments in technology

The company Web sites will be the source for identifying and evaluating the strategies

B . Sub-Problems

The study will also determine the common strategies used by both companies as well as the strategies which are unique to each company . A simple evaluation of the strategies will be made to find out how far the companies have been creative in packaging their promotions programs

In reviewing the strategies , a look at how the companies package their promotion packages will be made especially for those which are used by both

IV . Research Objective

A . The Problem

The problem to be researched is to identify and make a comparison between the promotions strategies of the two competing car companies Each company will be evaluated based on the simple criterion of the importance that the company gives to its marketing and promotions function

B . The Scope of the Problem

The study will include an analysis of the strategies being implemented by the two car companies . In the analysis , the following will be determined

What strategies are being used by both companies

What specific strategies are being used exclusively by each one

Which of the strategies are more attractive in terms of their appeal to the customers

Which of the strategies are more attractive in terms of their effectiveness

C . Objectives

The following are the objectives of this research

To determine the strategies being used by the two car companies to attract more buyers

To compare the promotions strategies in terms of their appeal to the customers

To make a simple analysis of the two companies ' efforts in their promotions campaigns

V . Research Methods Procedures

There are several methods used in collecting data to be used in undertaking research . There is substantial online reference material which provide information on these . Among the general methods used in research are the following : questionnaires , surveys , checklists interviews , documentation review , observation , focus groups , and case studies . The Maricopa Center for Learning and Instruction identifies five (5 ) research methods used in the social and natural sciences and these are : experiment , correlation , naturalistic observation , survey and case study

For this study , the method used is the documentation review , which is also

known as qualitative research . Here only the available documents will be reviewed and analyzed . Most of the sources and references are taken from the internet as these are the ones which are accessed by the majority of people now . In the review of the information provided , efforts will be made to collect the most updated information as possible . A search of the other online sites will also be made for additional support information

The data was collected by accessing the official Web sites of the two companies . Within the two sites , the promotions strategies were searched and classified . The will identify all these strategies and then make a comparison . Then a search was made for background information about promotions strategies . These will be used in making an evaluation of the strategies . As a tool in analyzing the strategies , it is important to know the principles and theoretical information was gathered and included in the research

Information was gathered about the concept of promotion . This will help achieve a better understanding about how these strategies can help a company grow and improve its performance . The different promotion strategies in marketing management will be researched to provide the theoretical framework

An important support to the is the concept of globalization . The analysis and conclusion will be anchored on the issue of globalization Toyota and Ford Motors are two of the biggest global companies that have been driving and leading the globalization efforts throughout the world .VI . Collected Data

A . Background Information : Promotion

As part of the support information , some principles and theories were researched about promotion strategies . A marketing information site online called Learn Marketing (accessible from http /www .learnmarketing .net /promotion .htm ) provides the following background information about promotions

A successful product or service means nothing unless the benefit of such a

service can be communicated clearly to the target market . An organization 's

promotional strategy can consist of

Advertising : any non-personal paid form of communication using any form of mass media

Public relations : Involves developing positive relationships with the organization , the media and the public . The art of good public relations is not only to obtain favorable publicity within the media , but it is also involves being able to handle negative attention successfully

Sales promotion : Commonly used to obtain an increase in sales short term . Could involve using money off coupons or special offers

Personal selling : Selling a product service one-to-one

Direct Mail : the sending of publicity material to a named person within an

organization . Direct mail spending now increased to huge amounts

representing a big percentage of advertising expenditure . Organizations pay

huge amounts of money for databases , which contain names and addresses of

potential customers . Direct mail allows an organization to use their resources

more effectively by allowing them to send publicity material to a named

person within their target segment . By personalising advertising response

rates increase thus increasing the chance of improving sales .

Additional information about promotion was taken from another marketing learning site called Money How Stuff Works , which is a site for those who want to learn about marketing and money (This is accessible from (http /money .howstuffworks .com /marketing-plan25 .htm

Promotion is the communications strategy of your plan . Here you will plan not only the message you want to use , but also the tools you will use to spread it to the world . Your promotion section should actually have six categories

advertising

public relations and publicity

direct marketing

promotions and events

product /company marketing materials

premium items

sales force

Basically , it should cover every communication mode that would appeal to your target market and help drive them to not only be aware of , but also to act on your offer . This would also include other things like client /customer newsletters , a company Web site , etc . It is in this section of your plan that you should make certain you are following an Integrated Marketing Communications plan . This means that each of these tools must follow the same rules and spread the same message

B . The Promotions Strategies of Toyota Canada Inc . and Ford Motor

Company of Canada

Toyota and Ford are two of the largest companies in the world and the following table taken from Fortune shows it

Table 3 : The World 's Largest Industrial Firms

Rank Company Sales (US M

1 General Motors 16 ,558 .0

2 Wal-Mart Stores 166 ,809 .0

3 Exxon Mobil 163 ,881 .0

4 Ford Motor 162 ,558 .0

5 Daimler-Chrysler 159 ,985 .7

6 Mitsui 118 ,555 .2

7 Mitsubishi 117 ,765 .6

8 Toyota Motor 115 ,670 .9

9 General Electric 111 ,630 .0

10 Itochu 109 ,068 .9

Average (10 largest ) 140 ,248 .2

_________________________________________________________

Source : Adapted from Fortune , The Global 500 , July 26 , 2000

Having this large volume of business and operations as well as the reputation , both companies must be really putting huge efforts in their promotions campaigns . To be the biggest in the world is an achievement that can only be done with a lot of hard work , specifically a lot of promotion work

The following sections will present and discuss the promotion strategies being used by Toyota Canada and Ford Motors Canada . Both are taken from the companies ' official Web pages

TOYOTA CANADA INC

The general classifications of their promotions strategies are

National sales promos

Local sales promos

Graduate Program

Mobility Program

Fleet and Rental Program

Fleet Elite Program

Rent-A-Car Program

Parts Service Promos

Toyota Used Vehicles

A of each of the strategies follows

1 . National Sales Promos

The latest national sales promotion strategies are the following

Waiving of security deposits by Toyota Financial Services on all 2006 and 2007 Toyota leases for the month of November

Offering of 4 .9 purchase financing available on terms up to 48 months for the stylish and sporty 2007 Yaris Hatchback . Or a 5 .9 lease rate available on terms up to 60 months

Offering of 4 .9 financing and 5 .5 lease rates on terms up to 48 months for the comfortable and functional 2007 Corolla , featuring competitive lease payments

Offering of 4 .9 financing up to 48 months for the 2007 all-new latest version of North America 's best selling car Camry . The new car is the Camry Hybrid

Offering of financing starting at 1 .9 for the 2006 Sienna for the rugged trucks or SUV 's , purchase financing starting at 4 .9 for a 36 month term on the 2007 Highlander , Highlander Hybrid , 4Runner and the full-size Sequoia

4 .9 financing for up to 48 months for 2007 Tacoma truck and with

5 .9 leasing up to 48 months

Financing rates for the full-size truck Toyota Tundra

These promotion strategies and rates are good from Nov . 1 , 2006 until November 30t , 2006 . The company maintains the accuracy of the promotions on a daily basis

2 . Local Sales Promos

Toyota Canada also provides special programs for its different regional distribution centers as well as dealers . In view of the uniqueness of the sales promos per region , the regional branches are given the power and responsibility to provide support information to the customers . The general promotion programs especially on the rates are published in the national sales packages for the guidance of the buyers

3 . Graduate Program

This is a program offering an allowance for graduates who avail of the all-new and unregistered Yaris , Yaris Hatchback , Corolla , Matrix , RAV4 and Tacoma models and Toyota Certified Used Vehicles delivered by an authorized Toyota dealer . The availees have to apply within four months of graduation , or have graduated within the last four years , from an accredited Canadian university or college . This offer was effective August 31 , 2006

The financing arm of Toyota , Toyota Financial Services , offers advantageous financing and leasing terms , including a graduated payment feature on retail loans for qualified graduates

4 . Mobility Program

Toyota designed this program to help cover the costs of installing adaptive driving aids or mobility assistance equipment up to a 1 ,000 This is called an allowance given to physically-challenged customers who acquire a new Toyota vehicle . The allowance is an additional benefit to the customer aside from the incentives that may be available for new buyers

5 . Fleet and Rental Program

Toyota regards its vehicles as an industry benchmark in terms of quality and reliability . According to the company , these are components that are critical to life-cycle costs and this was evidenced by the 19 Canadian Automobile Association (CAA ) Pyramid Awards given to Toyota Canada in 23 years . For companies needing an entire fleet of vehicles Toyota has a full range of vehicles which command a high resale value The issues of volatile energy costs and environmental concerns are also addressed by the company as it boasts of its fuel efficient vehicles which consistently capture the Energuide Awards . These were won by Toyota Prius , as well as the Highlander Hybrid SUV .for meeting the standards for performance and reliability in gasoline /electric hybrid vehicles

a . Fleet Elite Program

Toyota Canada offers the Fleet Elite Program until August 31 , 2007 with a 500 to 1 ,000 deducted from all current model year vehicles , open to legally registered companies that currently maintain a minimum fleet of 5

vehicles (from any manufacturer

b . Rent-a-Car Program

The Toyota Rent-a-Car Program is an offer until August 31 , 2007 where the amount of 500 to 1 ,000 is deducted from the most current model year vehicles for eligible and registered Daily Rental clients prior to August 31 , 2007 . This covers all new and unused Toyota vehicles sold to qualified Daily Rental Accounts with a minimum of 10 vehicles

6 . Parts Service Promos

The Toyota-trained technicians which the company is proud of takes care of the technical needs of the Toyota car owners not only as far as service is concerned but also with the Toyota Genuine Parts , without the added cost

The following services apply

Oil and Filter Service

Winter Tires

Front Brake Pad Replacement

Battery Replacement

Winter Wiper Blades

Touch-up Paint Pens

Cabin Air Filters

Air Filters

7 . Toyota Used Vehicles

The company slogan Once a Toyota , Always a Toyota ' says a lot about the company 's pride with regards to the quality of their vehicles . The company undertakes a meticulous 127-point inspection . Some of the highlights of the program are the following

Minimum of 12-months / 20 ,000 kms . of Powertrain and Roadside Assistance coverage

Warranty honoured at over 1 ,500 Toyota Dealers in Canada and the U .S

Zero deductible

Extensive mechanical and appearance reconditioning process

7 days /1 ,500 kms . exchange privilege

First oil /filter change at no charge (6 mos . or 8000 km

Membership in Club Toyota

FORD MOTOR COMPANY OF CANADA

The general classifications of their promotions strategies are

First Time Ford Buyer : A Quick Guide to Buying a Car

Business

Regional Offers

Leasing Financing

Graduate Program

Mobility Plus

Fleet and Rental Program

Parts Service Promos

Quality Certified Pre-Owned Vehicles

Rebates

1 . First Time Ford Buyer : A Quick Guide to Buying a Car

Ford Motors Canada is assisting customers through a quick guide to buying a car in to lessen the complications and make the initial purchase easy . This is also to help the buyer make an informed choice . A checklist is provided as a guide to coming up with a list of needs and wants

Assistance is also given in computing for the payments as well as the running costs of the vehicle such as insurance , fuel consumption , and regularly scheduled maintenance and all other costs of the vehicle itself . The company has a

handy affordability calculator that will help determine how much car truck or SUV one can afford to buy or lease , based on the buyer 's income . It is also available and accessible online

Ford will then present its full vehicle line-up from which the buyer can build and price the vehicle to his specifications using the company 's Payment Estimator . A quote may be requested from the dealer after this procedure . The prospective buyer may also request a brochure to get more detailed information , or check out the detailed specifications for each model . He can also schedule a

Test Drive with the dealer

2 . Business

The Business program of Ford Canada is about privileges and attention ordinarily reserved for the business class . However , the company gives VIP treatment even to small-to-mid-size businesses owners Each client is assisted according to his unique requirements , whether buying or leasing as few as 1 or as many as 40 vehicles

The Ford commercial account managers deliver excellent customer service to the customers by bringing the services to the client especially to those who cannot leave their business unattended . Test-drives are arranged during or after business hours . The client is assisted in planning for vehicle cycle and structuring a financing package and even with obtaining a credit facility for purchasing vehicles , accessories and service

3 . Regional Offers

Regional promotions are also offered specific to the different regions in Canada . In the Web site , regional areas are identified and from there information is given about the programs from the different regional distributors and dealers The local Ford and Lincoln dealers are offering promo programs in each of

the regions identified to include the following

British Columbia

Alberta

Manitoba /Saskatchewan

Ontario

Toronto

Quebec

Atlantic

The Ford Web site provides links to each of the regions where the

promotion packages are found 4 . Leasing Financing

Ford Credit Canada Limited has been providing quality automotive financing services to Ford Canada clients and it is one of the world 's largest companies dedicated to automotive financing

The company provides commercial lending services to meet the needs of any size company or level of government . t in determining the best option for your unique requirements . Commercial Lending has one branch in Canada dedicated to commercial customers

5 . Graduate Program

The Graduate Program offers a 1 ,000 new vehicle rebate offer to all eligible participants on the purchase or lease of most new Ford or Lincoln vehicles . The rebate may be used as a down payment towards a chosen vehicle

6 . Mobility Plus

The Ford Mobility Plus program is designed to assist individuals toward the installation of adaptive driving aids or mobility assistance equipment with the purchase or lease of any new Ford car or light truck Up to 1 ,000 is being given by the company to those who are physically challenged as certified by a Doctor 's note or government certificate

Ford is also offering up to 1 ,000 toward the installation of adaptive driving aids or mobility assistance equipment with the purchase or lease of any new Ford of Canada car or light truck 7 . Fleet and Rental Program

The incentive program for the fleet customers is as follows for 2006 going into 2007

2006 PROGRAM YEAR - COMMERCIAL FLEET INCENTIVE PROGRAM 2006 MODEL (Effective October 27 , 2006 to November 30 , 2006 )Eligible 2006 Models Commercial Fleet Incentives Commercial Fleet Delivery Allowance E-Series

1 ,500 1 ,500 3 ,000

F-250 /350

1 ,500 1 ,500 3 ,000

Source : Ford Fleet Online (https /www .fleet .ford .ca /english /programs_information /incentives /Incen tives .asp

The program for 2007

2007 Program Year Commercial Fleet Incentive Program

2007 MODEL

(Effective October 27 , 2006 to August 31 , 2007 Eligible 2007-Model Commercial Fleet Incentive Commercial Fleet Delivery Allowance Focus 500 - 500

Edge 500 - 500

Mustang (excluding Shelby Cobra G500 500 - 500

Fusion 500 500 1 ,000

Five Hundred 1 ,000 - 1 ,000

Freestyle 1 ,000 - 1 ,000

Crown Victoria 500 500 1 ,000

Grand Marquis 1 ,000 1 ,000 2 ,000

MKX 500 - 500

MKZ 500 1 ,000 1 ,500

Town Car 1 ,500 1 ,000 2 ,500

Mark LT 1 ,500 - 1 ,500

Navigator 1 ,500 - 1 ,500

E-Series 1 ,500 - 1 ,500

Freestar

Cargo Van , Base 1 ,000 2 ,000 3 ,000

Freestar

SE /Sport 1 ,000 1 ,500 2 ,500

Freestar

SEL /Ltd 1 ,000 - 1 ,000

Escape Hybrid - - -

Escape (excluding Hybrid 1 ,000 2 ,500 3 ,500

Explorer 1 ,000 1 ,000 2 ,000

Sport Trac 750 1 ,250 2 ,000

Expedition and Expedition MAX 1 ,000 1 ,000 2 ,000

Ranger 1 ,500 1 ,500 3 ,000

F-150 (excluding SuperCrew 1 ,500 1 ,500 3 ,000

F-150 SuperCrew 1 ,500 1 ,500 3 ,000

F-250 /F-350 1 ,500 1 ,500 3 ,000

F-450 /F-550 1 ,000 - 1 ,000

Taurus

(not eligible due to limited availability ) - - -

Source : Ford Fleet Online (https /www .fleet .ford .ca /english /programs_information /incentives /Incen tives .asp Parts Service Promos

Ford has a list of promotions it offers for vehicle parts as well as itsServices . The Web site presents a complete list of all the services it offers as

well as the privileges given to its buyers for vehicle parts

From batteries , brakes , oils and filters , shocks and struts , tires exhaust

systems to wiper blades , it offers a whole range of promotions to its clients 9 . Quality Certified Pre-Owned Vehicles

Ford offers the following benefits to owners of a Quality Certified car truck or SUV

115 point inspection

3 day /500 km money back guarantee

A full-year , complimentary Limited Maintenance Plan

24-hour roadside assistance

Car-Proof Verified vehicle history reporting

Use of the company handy QC TRACKER to find the Quality Certified vehicle that suits one 's requirements 10 . Rebates

Rebates of up to 1000 are offered to all eligible participants on the purchase or lease of most new Ford or Lincoln vehicles . The rebate may be used as a down payment towards a chosen vehicle . Or a rebate on a quality certified pre-owned Ford or Lincoln vehicle is offered

VII . Report of Findings

Generally , the two companies are employing similar promotions strategies . Below is a tabulation of the strategies of both companies

TOYOTA CANADA FORD MOTORS CANADA

National sales promos Rebates

Local sales promos Regional Offers

Graduate Program Graduate Program

Mobility Program Mobility Plus

Fleet and Rental Program Fleet and Rental Program

Parts Service Promos Parts Service Promos

Toyota Used Vehicles Quality Certified Pre-Owned Vehicles

Toyota Financial Services Leasing Financing

Clearly the two companies use similar strategies , as these are the strategies known to appeal to the customers in the automobile industry But even if they are similar , each company has a unique way of packaging them and presenting them to the customers

Both Web sites of Toyota Canada and Ford Motors are elaborate in their presentation of promotion programs compared . However , in terms of navigating the Web site , it is observed that the Toyota Web site is easier to navigate compared to the Ford Web site . Nowadays , the Web site is one of the best ways to access the people or the buyers directly This is now the most popular means to access the customers easily and directly

Ford Motors on the other hand is much more focused on its customer service program through the attention the company gives to the customers . Proof of this is the Quick Guide to Buying a Car program that customers can make use of . Another proof is the Business program where the customers are given the VIP treatment even if they are not the biggest buyers of the company . Aside from these two programs , it is noted that Ford meticulously inserts a good customer service touch in each of its promotion strategies

It was observed that while both Web sites provided detailed information about their promotions and services , only Toyota included information on the rates for the parts and services

Another promotion strategy used by Toyota is the creation of the Club Toyota which is accessible online . This is part of the benefits of the Toyota client who is given the exclusive privilege as a loyal customer A client can even have a personal homepage . Again , this is matched by the Business Program of Ford Motors VIII . Analysis of Findings

From the data gathered , it is noted that both Toyota and Ford employ similar promotion strategies as based from the theories about promotion and these are the use of the following

advertising

publicity

promotions and events

product /company marketing materials

premium items

sales promotion

The use of the internet as a means of advertising and promoting their products is an indication that globalization has become an increasing influence . International trade and investment has indeed faced a turn around in the last few decades . Every firm has made the important decision to globalize operations or face difficulties of global economic integration . Toyota and Ford Motors , being both international firms are also driven to globalize their operations

Such globalization surely has an effect on the competition policy of Canada . Firms like the Toyota and Ford are some of the drivers of globalization and they continue to contribute to the Canadian economic development . There is competition but there is also economic development

Sales promotions are common among businesses and both Toyota and Ford use the same strategy . They offer discounts , financing , low interest rates , easy installment plans , and all of these appeal to the customers greatly . Promotion programs for new or latest models of cars are also a big hit . The discount packages of Toyota and the rebate programs of Ford are very attractive to the clients

The promotion programs of both companies appeal to a large and varied segment of society . They offer promos to the young professionals through the graduate programs , and to the physically challenged or those with physical disabilities through their mobility programs . They also attract the large sector of business people who have varying needs from the elegant to the rugged needs through the different lines of vehicles Both companies address the needs of their customers by coming up with vehicle designs that suit their specific requirements

Marketing and promotions used to occupy a larger percentage of the budget of businesses . Now , with information technology , anybody can have access to information and businesses can access the people easily to sell their products . Both Toyota and Ford are also taking advantage of this development by promoting their products and services through the internet . While they are able to save on advertising costs through this they can still reach their potential market and use the method of direct mail to address the individual concerns of their clients Hewlett Packard cited Toyota as a success story in terms of its use of information technology as a large business . The customers no longer need to physically go to the dealers to get information about their products The company itself , through some technical information programs , brings the information right to the clients and stakeholders . customers

The Hewlett Packard Virtual Classroom is used by Toyota as a tool for training dealers across Canada . Toyota management considers it very successful for the company . It provides a rich environment for conducting effective and interactive online training and events of any type , with no travel for its associates , business partners and customers . Each one can attend training classes , product launches , team meetings , and collaborate in geographically dispersed groups IX . Conclusion

The study shows that promotion strategies are very important in achieving the goals of the organization . Even the big companies like Toyota and Ford continue to think of new and better strategies every time . And they also keep improving their current strategies . In the current business environment , more and more organizations realize the increasing need to adapt to the rapid changes brought about by globalization . Changes are happening so fast and in almost all areas of business and if the businesses are not creative in promoting their products , the implications will be a decrease in their sales performance . Both companies have remained in the top slots of the biggest companies in the world because of the care and attention they give to meeting their sales targets . The marketing and promotion function is a critical partner of the companies ' sales performance that is why their programs are well-thought of

Transportation is an important factor in the economic development of a country . Since man invented the automobile , there have been a lot of improvements in transportation technology . Businessmen want to explore and take advantage of these in expanding their existing markets and in exploring new ones . Transportation is considered as a strategic factor to economic development , linking markets as well as people . This is why the automobile industry is considered to be an important industry in business

The two car companies are very much into taking advantage of all these changes in technology and these are evident in the strategies they use in promoting their products . While both Toyota and Ford have adopted similar strategies , each one has a unique way of implementing them . We have seen that in their company Web sites alone , they have tried to adopt the latest technology (flash player , etc . The success story about Toyota featured by Hewlett Packard proves that the internet technology is being utilized by the company and it has become effective for them Not only does it contribute to their better promotion but also it helps improve their customer service function . Indeed these prove the efforts that the two companies put in their promotions and marketing . They also strive to implement what is most appealing to the customers . The idea of the personal homepage is something that any customer would love to have and enjoy

Both companies presented and packaged their promotion strategies uniquely so that they become more attractive to their buyers . The sales performance of the companies will determine if the strategies are effective but due to lack of financial data , it is safe to conclude that the promotion strategies of the two companies are definitely helpful in improving their sales performance

In closing , the has identified the strategies used by both companies in promoting their products and attracting their buyers , it has made a simple comparison of the said strategies , and a simple analysis about the companies ' efforts in their promotions programs meeting all of the objectives that it has set to achieve

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2006 from http /www .hp .ca /portal /enterprise /case_studies /toyota .php

IMF Staff . April 12 , 2000 . Globalization : Threat or Opportunity . Issues Brief . Retrieved on

Nov . 23 , 2006 from http /www .imf .org /external /np /exr /ib /2000 /041200 .htm X

Kindleberger , Charles

, and Bruce Herrick . Economic Development . 3rd ed . New York

McGraw-Hill , Inc , 1977

Maricopa Center for Learning and Instruction Web site . Last updated March 29 , 2006

Retrieved on Nov . 21 , 2006 from http /www .mcli .dist .maricopa .edu

proj /res_meth /login .html

McNamara , Carter . Authenticity Consulting LLC Web site . Copyright 1999 Retrieved

on Nov . 21 , 2006 from http /www .management help .org /research /overview .htm

Toyota Canada Web site . Toyota 2006 . Accessed on Nov . 20 , 2006 from

http /www .toyota .ca /cgi-bin /WebObjects /WWW .woa /wa

vp ?vp Home language English

XI . Appendices

Appendix A : Toyota Graduate Program Allowance

Vehicle Type Allowance

2006 /2007 TACOMA 1 ,000

2007 YARIS 500

2006 /2007 YARIS HATCHBACK 500

2006 /2007 COROLLA 500

2006 /2007 MATRIX 500

2006 /2007 RAV4 500

TOYOTA CERTIFIED USED VEHICLES 500

Effective August 31 , 2006

Appendix B : Sample of Parts Service Promos of Toyota

Oil and Filter Service

Toyota Genuine Motor Oil and Oil Filter

Remove and inspect air filter element

Lubricate locks , latches and hinges

Confirm lights , horn and wipers function properly

Check coolant , brake and washer fluid levels

Check tires and adjust pressure as required

Toyota Genuine Motor Oil - 34 .95 plus tax , SAE 5W20 /5W30 engine oil only

Synthetic Motor Oil - 74 .95 plus tax

Extra charge may apply for trucks . Waste disposal charge may apply

Winter Tires

Advanced tread designs . Superior traction in all winter conditions

Quiet highly durable performance

Install four for safer winter driving

Make seasonal switches a breeze with Toyota Genuine Steel Wheels

Front Brake Pad Replacement

Install Toyota Genuine Disc Pads

Inspect and lubricate Calipers

Inspect Brake Hoses and Lines

Road Test

Installed Prices

119 .95 plus tax - Tercel /Echo /Corolla /Yaris

134 .95 plus tax - Camry /Solara /Celica /RAV4 /Tacoma

149 .95 plus tax - Avalon /4Runner /Highlander /Sequoia /Sienna /Tundra /FJ Cruiser

Each brake repair is different and if additional parts or service are required , a quotation will be provided

Battery Replacement

Toyota Premium 72 battery

Designed to meet Toyota 's specifications

24 month free replacement period 72 month warranty Installed Price from 98 .95 plus tax

Ask us about our Express Check Battery Service

The 2 company Web sites can be found on these links http /www .toyota .ca /cgi-bin /WebObjects

WWW .woa /wa /vp ?vp Home language English for Toyota and http /www .ford .ca /english

default_flash .asp for Ford

McNamara , Carter . Authenticity Consulting LLC Web site . Copyright 1999 Retrieved from http /www .management help .org /research /overview .htm

The research methods are discussed extensively and can be read from the Maricopa Center for Learning and Instruction Web site accessible through : http /www .mcli .dist .maricopa .edu /proj /res_meth /login .html

The link to the pages where the Toyota promotions packages /strategies are found is http /www .toyota .ca /cgi-bin /WebObjects /WWW .woa /3 /wo /Home .Promotions-fYO JfhgNCjPFdN8e25fSJM

6 .15 ?fmg 2fpromo 2fp101000e 2ehtml

This is a competition that recognizes the outstanding use of promotional products by distributor members and non-members in business and institutional programs

The annual EnerGuide Awards is administered by Natural Resources Canada 's Office of Energy Efficiency and is presented for the most fuel-efficient vehicles for the current model year

see Appendix B for a sample of the Toyota Parts Service Promos

The Ford promotions strategies are found in this link http /www .ford .ca /english /firsttime

IMF Staff . April 12 , 2000 . Globalization : Threat or Opportunity . Issues Brief . Retrieved on Nov . 23 , 2006 from http /www .imf .org /external /np /exr /ib /2000 /041200 .htm X

Hewlett Packard Canada Web site . Large Enterprise Business : Success Story (c ) 2006 . Hewlett-Packard Development Company , L .P . Canada Retrieved on Nov . 21 , 2006 from http /www .hp .ca /portal /enterprise /case_studies /toyota .php

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