Group Assignment:

Course - B2B Marketing

By:
Zineb BOUJIDA 117095
Hazim EL FELLOUS 116725
Mohamed Karim BOUNOUAR 117082
Douae KRIMI BENCHEKROUN 117093
Hiba AZZAT 117086

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 Table of Contents

Chapter 1: Introduction ............................................................................................................. 3-4

Chapter 2: Data Collection Methods and Sources ........................................................................4

Chapter 3: Background of the Company ................................................................................... 5-6

Chapter 4 (part 1): Discussion on Selected B2B Product ......................................................... 6-8

Chapter 4 (part 2): Framework Analysis on Selected B2B Product ....................................... 8-12

Chapter 5: Servitization Strategies ......................................................................................... 12-15

Chapter 6: Marketing Strategy for the New Service (Servitization) ..................................... 15-17

Chapter 7: Conclusion ..................................................................................................................18

References .....................................................................................................................................19

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Chapter 1: Introduction

Toyota has established a reputation for itself in the material handling sector by offering
innovative solutions that meet the diverse needs of businesses worldwide. This study looks
closely at Toyota's business-to-business (B2B) activities in the material handling sector, focusing
on the company's electric forklifts and servitization strategies. By carefully examining
methodology, product analysis, servitization frameworks, and marketing strategies, we want to
provide a clear understanding of Toyota's approach and its implications for the industry.

First, the methodology for this study is described in the second chapter, along with the sources
and techniques of data collecting that were employed. We have verified the correctness and
dependability of our conclusions by carefully examining primary and secondary sources, such as
articles, case studies, and industry reports. Our direct interaction with Toyota's official sources,
including their websites and case studies, strengthened our analysis and provided a solid
foundation for this research by providing us personal knowledge of the company's business-to-
business activities.

The third chapter, which follows, gives a thorough overview of Toyota's history with an
emphasis on its material handling sector. This paper follows Toyota Material Handling's
development from its founding to its current position as a worldwide leader in the forklift
industry. Because of its dedication to excellence, innovation, and client satisfaction, Toyota
Material Handling has been known as a reliable business partner for companies in a variety of
sectors.

In the fourth chapter, we examine Toyota's electric forklifts in great detail, examining their
characteristics, advantages, and uses in the material handling sector. We then methodically assess
Toyota's competitive stance and market relevance by applying well-known frameworks like
Porter's Five Forces and SWOT analysis.

The fifth chapter examines Toyota's material handling industry servitization methods, building
on the product analysis. We see various products and services that Toyota offers, such fleet
management programmes and maintenance agreements, and we learn that Toyota builds long-
term ties with its customers. This chapter explains how Toyota's efforts in servitization enhance
its competitive advantage and customer contentment.

The sixth chapter presents novel concepts for use-oriented servitization, such as a platform for
forklift sharing that essentially aims to maximise forklift utilisation and improve cooperation
within the material handling sector. Furthermore, in order to guarantee the successful deployment
and market uptake of these new servitization systems, this chapter presents marketing tactics that
have been carefully considered and created.

Ultimately, the seventh chapter provides a complete overview and recommendations for Toyota
to improve its B2B product and service offerings, serving as a summation of the major findings
discussed throughout the term paper. In order to emphasise the significance of ongoing
innovation and customer-centric initiatives in propelling Toyota's success in the material
handling business, we have compiled the key takeaways from the previous chapters.

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This research aims to offer robust and relevant insights into Toyota's business-to-business (B2B)
material handling endeavours through a thorough examination, highlighting the company's
strategies, obstacles, and possibilities in this ever-changing and dynamic industrial landscape.

Chapter 2: Data Collection Methods and Sources

In this report we have used a comprehensive and complex strategy to analyse Toyota's business-
to-business (B2B) activities in the manufacturing industry specifically their forklifts and
operations.

The initial step of our study was a thorough examination of significant material, which included
a wide range of publications, papers, and studies related to Toyota's business-to-business
activities and the automotive sector as a whole. This crucial first step gave us insightful
knowledge about the current trends, obstacles, and possibilities reshaping Toyota's business-to-
business environment.

Additionally, we engaged directly with materials from the source specifically from Toyota’s
official websites and case studies to make this report more accurate and thorough.
Most of the data used in this report was gathered meticulously with our available resources as
students most of our information and collection was through publicly available data.

Employing established analytical frameworks such as Porter's Five Forces and SWOT analysis,
along with techniques we learned in our B2B marketing classes, we have been able to
systematically evaluate Toyota's B2B products, partnerships, and competitive landscape. These
frameworks gave Toyota's B2B operations a systematic way to identify their strengths,
weaknesses, opportunities, and threats. They also helped us determine the precise position of the
selected product in the market, as well as its significance and the key players in this sector.

We should emphasise once more that a large amount of the data we used came from the official
Toyota Forklift website, in addition to insights from their case studies. This made sure that our
study was based on trustworthy and reputable corporate sources.

Our objective was to provide an extensive examination of Toyota's business-to-business (B2B)

activities by combining information from various sources, including as industry publications,
academic journals, news announcements, and Toyota-owned private data. By using this method,
we could be sure that our results were solid, perceptive, and representative of the intricate
dynamics present in Toyota's B2B environment.

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Chapter 3: Background of the Company

In this chapter we will be diving into TMH’s history by giving an overview of is products
services and customer base as well as target market and market share.

With its headquarters located in Columbus, Indiana, Toyota Material Handling, Inc. (TMH),
better known by its brand name Toyota Forklift, is a well-known producer and distributor of
forklifts and tow tractors.

TMH was founded in January 2020 as a result of the merger of two other similar business units.
Today, it functions as a division of Toyota Material Handling North America, which is a division
of Toyota Industries Corporation.

We can trace back its roots back to 1967 when Toyota introduced its first lift truck in Japan then
it was followed an inaugural forklift sale in the United States. Then, in Columbus, Indiana,
Toyota Industrial Equipment Manufacturing (TIEM), the company's manufacturing affiliate, was
founded in 1988. Forklift production started there in 1990. Thus, TMH has accomplished a
number of noteworthy landmarks throughout the years, including producing its 50,000th and
100,000th forklifts, respectively, in 1996 and 1999.

In 2002, Toyota Material Handling, U.S.A., Inc. (TMHU) was the establishment as the North
American industrial equipment sales and distribution arm of Toyota it has marked the company's
ascent to become the top-selling lift truck company in America after these events TMHU's
manufacturing facility in Columbus has expanded its product range to include not only sell lift
trucks but also tow tractors in 2008 and has become the sole distributor of Aichi aerial work
platforms, which is extremely impressive.

In addition to a wide range of material handling vehicles, its product line includes industrial
equipment such order pickers, pallet jacks, tow tractors, electric and internal combustion
forklifts, and automated guided vehicles. The Toyota Dealer Network, which consists of more
than 200 independent dealerships throughout the United States and Canada, distributes these
items once they are manufactured on-site in Columbus.

A significant accomplishment for the business, the sale of TMH's 750,000th forklift as of 2021
underscores the company's sustained performance and its standing as a pioneer in the material
handling sector. They keep pushing forward with their dedication to innovation, quality, and
customer satisfaction, not only catering to a wide range of sectors but also providing their clients
with their reliable and efficient solutions.

Their clientele comprises a diverse range of industries, including stores, warehouses, large
factories, and small and large organizations. All of these clients share the requirement for
forklifts to manage their daily operations.
Most of the Toyota's target market consists of companies in need of effective and efficient
material handling solutions.
Examples of their clients is as follows:
• Coca-Cola

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 • BMW
• FedEx
• PepsiCo
• Toyota Motor Corporation (in certain divisions or facilities)

Although market shares vary by region, Toyota is seen as a worldwide force to be reckoned with
in the sector.
Well-known companies like Linde, Mitsubishi, and Komatsu are some of their competitors.

Chapter 4 (part 1): Discussion on Selected B2B Product

The Toyota Electric Forklift is designed for businesses that need to lift and move heavy things
easily. Toyota electric forklifts are engineered for both efficiency and durability it provides an
eco-friendly solution without it compromising on its performance. So basically, these forklifts
are equipped with Toyota-built AC motors that actually require less maintenance, which means
that downtime is reduced and an improvement on the Return On Investment (ROI).
Electric forklifts are not only versatile but can also be utilized across various applications, such
as manufacturing, warehousing, distribution in various sectors and to name some such as the
beverage, and retail sectors. They offer significant advantages such as longer maintenance
intervals, reduced noise, zero emissions during operation and finally, lower operating costs.
When operating an electric forklift in wet circumstances, it is critical to review the Internal
Protection Code (IP) to determine the amount of protection against particles and liquids. If it is
critical to operate these forklifts in wet circumstances, safety precautions should include utilizing
lights to improve visibility, travelling slowly, and wearing waterproof clothes.

Toyota’s Electric Forklift is as you can see in the picture above, for better visualization of the
product.

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Customer segments:

• In this segment we’re going to see the use of forklifts in different sectors to get a better
understanding of the product and its usefulness.

• General Manufacturing: Toyota forklifts are used to facilitate movement of materials

around factories, to load and unload trucks, and to stack products in warehouses.

• Food and Beverage: Toyota's electric forklifts are perfect for food places because they're
clean and don't mess with the food's safety.

• Retail Stores: Toyota has special forklifts for stores that make stocking shelves and
moving products around super easy.

• General Warehouse: Toyota Forklifts make keeping the warehouse organized and moving
boxes around a breeze.

• Cold Storage: Toyota's forklifts can handle the cold, perfect for places that store food and
need to keep it frozen.

• Building Materials: For tough jobs like moving bricks or pipes, Toyota's forklifts are
durable and robust for construction, making them ideal for tough environments.

• Freight: Toyota helps shipping companies move stuff fast and safely, with lots of options
for any kind of cargo.

• Paper: Toyota Forklifts are great for the paper industry, helping move big rolls of paper
and finished goods effectively and without any difficulty.

• Lumber: Moving logs and wood products is easy with Toyota's strong forklifts, even in
the rough conditions of the lumber industry.

Toyota's electric forklifts' target market primarily consists of businesses in the manufacturing
sector, where goods and products are produced, to name a few examples; warehouses, where
goods are stored; distribution centers, where items are prepared for shipping; beverage stores;
and retail stores, where products are sold to customers.

These industries are constantly on the search for equipment that will save them time and
resources while also allowing them to operate more efficiently. Additional benefits include
keeping the environment clean and maintaining the safety of their operations and workers.
Electric forklifts are great for these firms since they not only do not produce pollutants, but they
also work silently and help reduce operating expenses. Furthermore, these forklifts may be

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utilized indoors and outdoors, making them flexible equipment suitable for a variety of activities
in these sectors.

Chapter 4 (part 2): Framework Analysis on Selected B2B Product

SWOT:

Strengths:

● Strong Brand Reputation: Toyota is known for reliable, durable, and high-quality
products, giving it a competitive edge in the electric forklift market.
● Extensive Product Range: Toyota offers a wide variety of electric forklifts with
different capacities, features, and configurations to cater to diverse industry needs.
● Global Network: Toyota has a big network of dealers around the world, making it easy
for customers everywhere to get service and support.
● Focus on Innovation: Toyota invests heavily in R&D, developing cutting-edge
technologies like lithium-ion batteries and automation, potentially giving them a lead in
advanced models.
● Customer-Centric Approach: Toyota prioritizes customer service and building strong
relationships, fostering trust and loyalty.

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 ● Electric forklifts: offer numerous benefits, including lower operating costs, reduced
emissions, less maintenance, operator comfort, and a quieter operation.
Benefiting from government incentives:

Weaknesses:

● Initial Cost: Higher upfront cost compared to their forklift combustion models. Electric
forklifts have a higher initial purchase price than their internal combustion engine
counterparts since you essentially pay for fuel (the battery) upfront.
● Battery Charging Time: Electric forklifts require significant time to recharge, which
could lead to downtime unless businesses invest in extra batteries or fast-charging
infrastructure. The charging time for electric forklifts depends on the battery capacity and
charger type. Standard charging for a battery typically takes 8 to 10 hours, while fast
chargers can reduce this to 2 to 4 hours.

Opportunities:

Rise in E-Commerce: The e-commerce boom increases the need for efficient warehousing and
distribution solutions. Toyota Electric Forklifts can meet this demand with their efficiency and
reliability, especially in high-volume, fast-paced environments.
Government Incentives for Green Machinery: In many countries as well as Morocco
governments offer incentives for businesses that invest in environmentally friendly equipment.
This can include tax breaks, grants, or rebates for purchasing electric forklifts, making them
more attractive to businesses.

Expansion of Green Logistics: As businesses globally are pushed towards more sustainable
practices, there's a growing trend in green logistics, where companies aim to reduce their
environmental impact through cleaner transportation and warehousing solutions. Toyota Electric
Forklifts, with their zero emissions and lower energy consumption, are perfectly positioned to
benefit from this shift. The movement towards green logistics opens significant market
opportunities for Toyota to supply to businesses looking to minimize their carbon footprint in
their supply chain and logistics operations.

Threats:

Competition: Intense competition from other manufacturers offering similar electric models.
(CAT, Linde…)

Volatility in Lithium Prices: The increasing demand for lithium, a critical component in electric
forklift batteries, can lead to price volatility. As electric vehicles and renewable energy storage
solutions gain popularity, the demand for lithium batteries rises, potentially increasing costs for
manufacturers of electric forklifts like Toyota. This could impact the production cost of electric
forklifts and, consequently, their market price, affecting competitiveness and adoption rates.

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Porter Five Forces:

Competitive Rivalry: (Moderate)

Electric forklift firms are aggressive against each other, in terms of innovation and marketing.
Also, Toyota material handling competes with a high variety of firms, which differentiate
through cost, battery efficiency, operational flexibility, brand image, and other variables. Toyota
competes against a number of large multinational firms, such as Third Wave Automation, KION
Group, Crown Equipment, and Hyster Yale. Even though Toyota is known to be the leader in the
forklift market, this part of the Five Forces analysis shows that Toyota must have comprehensive
strategies to address the strong force of competitive rivalry. Toyota and other electric forklift
companies keep a close eye on what each other is doing.

Bargaining Power of Customers: (Low)

Toyota, recognized as the leading forklift manufacturer for B2B customers, particularly excels
when selling large quantities of electric forklifts. Customers engaged in bulk purchases often
enter into contracts with Toyota, agreeing to monthly or annual payments. These customers
cannot easily switch to another supplier because they’re already engaged and it’s hard to cancel
the contract with a leading brand. These agreements, coupled with the significant investment for
multiple forklift acquisitions, enhance Toyota's bargaining power. Consequently, for customers
looking to buy in large quantities, negotiating lower prices becomes challenging due to the
contractual obligations and Toyota's strong market position. This scenario underscores Toyota's
advantage in pricing negotiations, especially in deals involving large orders.

Bargaining Power of Suppliers: (Moderate)

For Electric Forklifts they really need lithium to be produced for their batteries.
While Earth boasts 88 million tonnes of lithium, but only a fraction is easily mineable.
Just 25% of reserves are economically mineable, and even lithium mines that are already in
operation cannot quickly raise their production levels. The electric forklift revolution might not
face a lack of the metal itself, but rather the challenge of extracting it fast enough to meet
demand.

With abundant lithium but limited easily accessible mines, we can expect a moderate bargaining
power for suppliers as demand outpaces readily available resources.

Threat of Substitues: (Moderate)

There is a lot of Toyota electric forklifts of substitutes. These alternatives could include manual
labor, non-electric forklifts, or automated guided vehicles (AGVs) from competitors. However,
the availability and convenience of these substitutes can vary significantly. For instance, not all
settings can accommodate AGVs due to technological or space constraints, and manual labor
may not be as efficient or safe for certain tasks. In this aspect of the Five Forces analysis for
Toyota Electric Forklifts, the presence of such alternatives presents a moderate threat of
substitution. Toyota must address this by enhancing the accessibility, cost-effectiveness, and
improve the fast charge of its electric forklifts. Implementing strategies within Toyota’s
marketing mix can improve market penetration and solidify the brand’s position, countering the
substitution threat effectively.

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Threat of New Entrants (Low)
Toyota's electric forklifts don't really worry about new companies trying to compete with them.
Especially Toyota as a leading brand in forklift market. Starting a company that makes electric
forklifts costs a lot of money, and keeping it running and growing is even more expensive. These
high costs stop many new companies from entering the market and challenging Toyota.
Compared to other challenges like competing with other forklift makers or dealing with customer
demands, the risk of new companies starting up is pretty small for Toyota. This means Toyota
can focus more on staying ahead in the electric forklift game without stressing too much about
new rivals popping up. But it's still good for Toyota to keep an eye on economic trends and
changes in what people want or need, to stay on top.

Marketing Mix:
Product:

Toyota's electric forklifts represent a shift towards sustainable operations, offering a range of
machines designed for both indoor and outdoor use that lift and move heavy things easily.. These
forklifts are tailored to meet diverse application needs, featuring zero emissions and superior
maneuverability. The lineup includes models suitable for various operational demands, from the
compact BT Staxio, ideal for narrow aisles, to the robust Toyota 7FBE series, designed for heavy
lifting. This range signifies Toyota's commitment to providing power, precision, and
environmentally friendly solutions in material handling.

Price:

Electric forklifts have a higher initial purchase price than their internal combustion engine
counterparts since you essentially pay for fuel (the battery) upfront. However, they offer long-
term cost savings due to lower operating and maintenance expenses. Factor in government
rebates and tax incentives, and the equation starts tipping in favor of electricity. Additionally,
improved energy efficiency translates to lower utility bills, further boosting your bottom line.

Promotion:

Toyota uses personal selling through dealerships’ sales personnel, who personally promote
products to potential buyers. The automotive business also uses advertising on various media,
such as TV, and their website. Advertisements are among the most visible tactics in Toyota’s
marketing mix. In public relations, the company uses environmental protection and conservation
initiatives, as well as community development programs and donations. These programs and
initiatives create a positive brand image that promotes the company and its automobiles. On the
other hand, sales promotion is occasionally used through special forklift deals.

Place:

Toyota dealerships are where most sales transactions occur. The availability of Toyota electric
forklifts is supported by an extensive dealer network, ensuring that assistance, maintenance, and
parts are readily accessible. This network plays a crucial role in minimizing downtime and

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maintaining operational efficiency. Toyota's website has lots of information about their forklifts
and ways to pay for them. It also has a tool to help you find a nearby dealer for help and advice.

Chapter 5: Servitization Strategies

Before diving into the Servitization systems that Toyota offers for their clients lets first define
Servitization and two of the three types: use oriented as well as result oriented.

Servitization is the process of transitioning a company from selling products to selling a

combination of products and services. Servitization is basically shifting from products to product
service bundles.
• Use-oriented services: focus is on providing access to the product and the benefits it
provides.
• Result-oriented services: the focus is on delivering a specific outcome or result to the
customer.

Toyota provides a range of free services to its clients for their forklifts; in this section of the
study, we will categorise their service strategy into the three different sorts of strategies to
determine THM's precise position in this category.

Product-oriented services:

First on our list is Maintenance Agreement.

Planned Forklift Maintenance" and "Full Forklift Maintenance" are the two types of maintenance
agreements they provide.
The first kind of maintenance, called "planned maintenance," includes flexible payment choices,
routinely scheduled, in-depth examinations, suggested repairs, and the implementation of those
fixes.
As for the “Full Maintenance” it is more advanced as Toyota described in their website “Signing
up your forklift on a full maintenance agreement is like receiving the royal treatment”.
Customers not only receive everything included in the planned maintenance agreement, but they
also have a plethora of other benefits such as:
• Maintenance records, tracking, and regular reports.
• Pre-paid scheduled and breakdown repairs with the exception of repairs due to misuse,
abuse, and wearable items.
• Replacement rental equipment for the covered repairs, without charge.
• Flat monthly payment with the exception of repairs due to misuse, abuse, and wearable
items.

Dealerships frequently assume responsibility for managing your forklift's whole preventative
maintenance programme when you opt for "Full Maintenance." The real advantage is that forklift
maintenance is now handled by the same individuals that operate with the equipment on a daily

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basis at the dealership. The staff at the dealership is frequently in the greatest position to know
when to replace and repair items before it impacts their operation when they are able to work
side by side with the client. This increases the piece of mind that comes with fleet ownership of
forklifts.

Because the monthly payment does not change from month to month, it also makes budgeting
easier for consumers. In the ideal scenario, they wouldn't have to foot the bill for any unplanned
repairs or routine maintenance checks that come with forklift ownership. Monthly charges for
full maintenance take into account several aspects, including age, service history, kind of
equipment, and the forklift's operating environment.

Use-oriented services:

Toyota provides what are referred to as fleet management services, which are essentially all of
the activities they carry out to maintain a fleet operating profitably, punctually, and effectively.
They guarantee that a fleet is keeping costs down, consistently increasing efficiency, and
complying with regulations.
They provide two ways to achieve it. The first is to closely watch a machine's condition online
using myToyota.
So, what exactly is myToyota?
According to them it is “a suite of digital solutions where you can access 24/7 insights about
your business and fleet from Toyota Material Handling, Toyota Industries Commercial Finance
(TICF), and the Toyota dealer network.
Whether you operate one forklift or thousands, one location or hundreds, MyToyota can help you
optimize your operation and material handling equipment. With MyToyota, you now can go to a
single website and access Toyota offerings that best fit your business needs. Utilize MyToyota to
take control of information and make smart decisions.”

There are essentially four options or activities that may be taken on this online platform. The first
is the Toyota store, which is a place where customers can buy parts, accessories, and equipment
online.
Since the other three pages have a direct bearing on forklifts and forklift management, they are
the most significant.
On my fleet page, you may track open equipment orders with Toyota dealers, manage the fleet
online, get new equipment proposals, and access TICF leasing and financial data.
The purpose of the MyInsights page is to see basic telematics data, such as hour metre readings,
error codes, impact detection, and equipment location, using MyInsights.
And lastly, the MyToyota Service, which allows users to submit online service requests and
follow them through to completion while getting real-time updates.

In addition to my Toyota, they also have a more specialised platform known as iFleet; in contrast
to my Toyota, this platform is paid for and offers a variety of package alternatives.
In 2018, Toyota became the first business in the sector to equip electric warehouse trucks with
telematics as standard equipment. Currently, more than 200,000 cars are linked to it.
As long as the client owns a Toyota forklift, the starting pack is free.

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The My Fleet pack, which is the second pack, serves as an online inventory for all of the smart
forklifts in use at one or more sites. Included in this package are:

• Starter package
• Cost overview
• Invoice details.
• Service history.
• Service worksheets.

The third and biggest package is the Explorer it is described as “the perfect companion for
logistics managers seeking to improve safety, performance and efficiency.”
Examples of features included in the package:

• My Fleet package.
• Access control
• Driver management
• Battery management
• Impact management
• Tracking
• Full app functionality

These two offerings MyToyota and I Fleet may sound similar, but they are two distinct services.
Their main difference is that MyToyota focuses on small businesses and individual forklift
owners, providing digital solutions for fleet management, parts procurement, service tracking,
and telematics data analysis. On the other hand, iFleet caters to bigger businesses and logistics
firms, offering sophisticated fleet management services including remote monitoring, access
control, driver management, telematics technology (which is distinct from telematics data
analysis), and mobile app capabilities. In addition, iFleet provides more complete solutions than
MyToyota by customising packages to match the unique requirements of companies with sizable
fleets of forklifts.

Result-oriented services:

One of their other servitization strategy is customization which at Toyota is called TSDR which
stands for Toyota special design requests. Which is basically a service that allows their customers
to customize their forklifts so it can meet their specific needs it can go from adding safety
features like blue lights to personalizing decals and paint jobs.
For customers to request a customization they must get in contact with their local dealership
salesperson. They can provide images to help them convey their vision which are then reviewed
by Toyota's mechanical engineers in to ensure all safety compliance.
After that the modifications are incorporated into the manufacturing process, although it may
result in longer lead times. However, most of their customers find that the wait is worth it since
this customization tailors and suits their needs.

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Chapter 6: Marketing Strategy for the New Service (Servitization)

So basically, in this chapter of the report we will be developing a new servitization strategy that
THM can implement to further flourish. Specifically, we will delve into creating a distinctive
value proposition for the shared forklift concept, determining an optimal pricing strategy for the
shared forklift service, and effectively promoting this concept to target customers.

Developing a unique value proposition for the shared forklift concept

To create a distinctive value proposition for the shared forklift concept, Toyota must thoroughly
understand their target audience and their specific needs. By aligning the value proposition with
these needs, Toyota can differentiate itself in the market. One approach is to emphasize the cost-
saving advantages of sharing forklifts, which can significantly reduce expenses on equipment
purchases, maintenance, and storage. Highlighting these benefits can appeal to businesses
looking to lower costs and improve efficiency.

Another important aspect to consider is the enhanced efficiency and flexibility that shared
forklifts offer. Businesses can gain access to a variety of forklift types tailored to their specific
needs, leading to not only an increased productivity but also operational flexibility. Emphasizing
these advantages in the value proposition positions Toyota's shared forklift program as a solution
that enhances operational efficiency and adaptability.

Furthermore, highlighting Toyota's reputation for producing high-quality and reliable industrial
equipment can build trust among potential customers. Businesses can rely on Toyota's forklifts to
deliver consistent performance and minimize downtime, ultimately increasing productivity and
customer satisfaction.

By combining cost-saving benefits, improved efficiency, and quality assurance in its value
proposition, Toyota can develop a unique offering that appeals to businesses seeking streamlined
operations and reduced expenses. Effective communication of this value proposition will be
crucial in attracting customers and driving adoption of the shared forklift concept.

Determining the pricing strategy for the shared forklift service

Developing a successful pricing strategy for Toyota's shared forklift service involves carefully
considering various factors to ensure both profitability and customer satisfaction. By analyzing
the market, understanding customer needs, and evaluating costs, Toyota can create a pricing plan
that strikes the right balance.

One potential approach is to offer tiered plans based on usage levels, giving businesses the
flexibility to choose a plan that best fits their needs and budget. For example, basic plans could
be targeted towards businesses with sporadic forklift usage, while premium plans could cater to
those with higher demand. This customizable pricing model allows Toyota to cater to a wider
range of customers and make the shared forklift service more appealing.

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Another important factor in determining the pricing strategy is the length of rental periods.
Offering different pricing options for short-term and long-term rentals can attract businesses with
varying usage requirements. Short-term rentals may have higher hourly or daily rates, while
long-term rentals could benefit from discounted rates or fixed monthly fees. This tailored
approach enables Toyota to accommodate businesses with diverse needs and budgets.

Furthermore, it is essential for Toyota to consider all costs associated with operating and
maintaining the shared forklifts when setting prices. These expenses include maintenance,
repairs, insurance, and administrative overhead. By accurately calculating these costs and
factoring them into the pricing structure, Toyota can maintain profitability while offering
competitive rates to customers.

Regularly monitoring the pricing strategy and collecting feedback from customers will be crucial
in refining and adjusting the pricing model. This ongoing assessment process will enable Toyota
to optimize its pricing strategy, stay competitive in the market, and enhance overall customer
satisfaction.

Promoting the shared forklift concept to target customers.

To boost the adoption of Toyota's shared forklift concept, a robust promotion strategy is crucial.
Effectively conveying the advantages and value proposition of the shared forklift program is key
to creating awareness, generating interest, and ultimately engaging customers.
Identifying the target customers and tailoring the messaging accordingly is a vital component of
the promotion strategy. Understanding the specific needs, pain points, and priorities of
businesses in search of forklift solutions enables Toyota to craft compelling messages that
resonate with the target audience. Emphasizing the cost-saving benefits, increased efficiency, and
quality assurance of Toyota's forklifts will motivate businesses to explore the shared forklift
program further.

Utilizing a variety of marketing channels is essential to effectively reach the target customers.
Online channels like search engine optimization (SEO), pay-per-click (PPC) advertising, and
social media marketing can help create awareness and drive traffic to Toyota's shared forklift
program. Offline channels, including industry events, trade shows, and partnerships with relevant
organizations, can also be utilized to reach potential customers.
Content marketing serves as a powerful tool in promoting the shared forklift concept. By
developing informative and engaging content such as blog articles, case studies, and videos,
Toyota can educate the target audience about the benefits of sharing forklifts and establish itself
as an industry leader. Sharing customer success stories and testimonials will also help in building
trust and credibility.

Collaborating with industry influencers and thought leaders can further enhance the promotion
efforts. By leveraging their expertise and networks, Toyota can expand its reach and credibility
within the target market. Engaging in partnerships and sponsorships with businesses that
complement the shared forklift program, such as logistics companies or warehouse management
software providers, can also provide valuable exposure and generate leads.

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Choosing the right distribution and sales channels for the shared forklift concept

Toyota could consider using its existing network of dealerships and authorized resellers as a
means of distribution and sales channels for its shared forklift concept. These well-established
channels can give companies searching for forklift solutions access because they are well-
established in the market. Toyota can successfully convey and drive sales of the shared forklift
idea by providing sales staff with the appropriate tools and information.

Another alternative of distribution channel for Toyota is to consider establishing partnerships

with rental companies or firms that lease equipment. Collaborating with these organizations
Toyota is going to be able to leverage their existing customer base and existing sales channels to
reach numerous potential clients. This strategy will allow Toyota to tap into a wider network of
businesses in that are in need of such services.

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Chapter 7: Conclusion

This research offers a thorough examination of Toyota Material Handling's business-to-business

(B2B) operations, with a particular emphasis on the company's electric forklifts and material
handling industry servitization plans. By carefully analysing methodology, product analysis,
servitization frameworks, and marketing tactics, we have learned a great deal about Toyota's
strategy and how it affects the market.

To begin with, our research entailed gathering data from a wide range of diverse sources,
including industry publications, academic journals, and Toyota's official website and case
studies. Thus, by utilising analytical frameworks like Porter's Five Forces and SWOT analysis in
this study, we were able to thoroughly assess Toyota's B2B offerings and market environment.
This has given us a strong basis for our research by guaranteeing the accuracy and timeliness of
our results' credibility and dependability.

According to our analysis, Toyota Material Handling has made a name for itself as a leader in the
material handling industry thanks to a long history of innovation, excellence, and client
happiness. Its electric forklifts have several benefits, including efficiency, durability, and
environmental friendliness, which makes them appropriate for a variety of uses in a range of
sectors.

Additionally, we have looked at Toyota's servitization tactics, which entail going from selling
goods to providing a range of goods and services. Thus, Toyota has improved its competitive
edge and developed enduring connections with consumers by offering use- and result-oriented
services including maintenance agreements, fleet management programmes, and customisation
possibilities.

In this analysis, we also discovered some innovative ideas for servitization, like the Forklift
Sharing Platform, which could fundamentally transform the industry by encouraging resource
sharing among enterprises and optimising forklift utilisation. Thus, by adopting such cutting-
edge ideas, Toyota will be able to set itself apart from rivals and offer a whole new level of value
to its clients.

To summarise, this study emphasises the importance of implementing servitization methods in

the B2B product market and their significance in generating corporate success and customer
happiness. Toyota Material Handling can continue to lead the way in the material handling
market by using its strengths in product quality, innovation, and customer service.

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