The nature of the problem: Although Toyota has attempted over the years to establish itself in the European auto market, it has since struggled to dominate the local competition, such as Volkswagen. Toyota has not been able to match the number of dealerships and units sold with European manufacturers. The brand does not perform as well in the European market as in Asia and North America.
The major issues: As Toyota is a foreign company, it is natural that Europeans may feel somewhat alienated from Toyota products. Some perceive the company as cold and impersonal. It bears no personal touch that appeals to the local culture and nationality of the European people. For instance, many Europeans harbor more conservative values and, as a result, favor older, more trusted brands. This has been acknowledged by Toyota's international marketing experts. Another, quite related problem regards the instability of Toyota as a brand. Public perception of Toyota varies erratically from country to country based on the respective histories of Toyota imports as well as the varying markets and needs for competition.
Strategic alternatives: There are many traditional ways for Toyota to improve its brand image. Consumers universally respond to competitive prices, so by reducing the cost of Toyota ownership the company is certain to move more units in Europe. Toyota may also appeal to customer satisfaction. As such satisfaction is deeply tied to a sense of consumer surplus and feeling one is the recipient of a good deal, lowering prices will help kill two birds with one stone by making consumers more confident in their decision to purchase Toyota vehicles and de facto satisfied. Toyota can also stand to better develop its networks in Europe by finding ways to make selling Toyota products a more profitable venture for dealers. Lowering prices can often alienate large companies like Toyota from small regional dealershi...