Learning Center
Plans & pricing Sign in
Sign Out

toyota market share


									                 Pricing – Toyota Camry

 The Camry is Toyota’s most popular selling model internationally

 Toyota set the initial price for the 1998 model Camry at a lower
  than the 1997 model

 It marked the 2nd successive year that a “value pricing” was

 However, competition from other Pacific Rim firms with a lower
  cost base was becoming more intense

 Toyota’s Response: designers and operations engineers added
  product features to the Camry without adding to the cost of

 The Impact:

      Toyota has cut $2.5 billion in costs by using fewer parts and
       stripping waste from production systems!

      The customers obtained additional product features without
       corresponding increases in prices

      Therefore, perceived customer value was enhanced, giving
       Toyota a competitive advantage!
        Pricing - Procter & Gamble’s Diapers

 Procter & Gamble’s two premium-priced diaper brands, Pampers
  and Luvs, were experienced sliding market share: from 50 % in
  1988 to less than 42 % by 1993.

 The company repositioned Luvs as a quality brand at a
  competitive price, while keeping its flagship brand, Pampers, at its
  top-of-the-line position.

 While Luvs’ price was cut by 16 %, it continued to be about 15 %
  higher that the price of most store brands. However, Luvs also
  continued to have better quality and performance on attributes,
  such as absorbency.

 P&G’s value-based pricing strategy took into consideration not
  only competitors’ prices, but also intangibles and benefits
  consumers derived from the use of the product.

 P&G’ s new pricing strategy was introduced with a major
  advertising program emphasizing the superior value offered by

 The Impact:

       The firm’s overall share of the disposable diaper market

       By 1999, the baby care, feminine care, and paper products
        business unit generated $12 billion in worldwide sales, 30 %
        pf the company’s total revenue!!!
                        Pricing – Post Cereal

 In 1996, Post Cereal, a division of Philip Morris was losing ground
  to industry leaders Kellogg’s and General Mills. The company saw
  its market share drop from 16.8 % to 15.6 % in a year’s time.

 In addition, private label brands were sneaking up on the national
  brands. The store brands’ market share had grown from 3 % in
  1987 to 10 % in 1996.

 The Breakfast cereal prices had increased by 90 % between 1983
  and 1994, substantially more than other product categories!

 On April 15, 1996 Philip Morris announced price cuts of about 20
  % on its Post and Nabisco ready-to-eat cereals. Its price
  reductions cut into Kellogg’s market share significantly.

 On June 10, Kellogg’s followed suit, announcing an average 19 %
  price cut on selected cereals.

 On June 20, General Mills initiated an 11 % price reduction on
  selected cereals.

 The Impact:
     The overall cereal market has shrunk to $7.2 billion in 1998
       from $8.0 billion just four years ago!

       Kellogg’s market share has dropped to 32 % from 35 % in
        1993, representing a decline of approximately $500 million
        in revenue!

       General Mills is similarly struggling – its flagship Wheaties
        lost 12 % of its market share in 1997, and the company has
        prices 17 % above the industry average!

       Private labels have now achieved an 18 % share of the

To top