Question

In: Economics

1. Create a positioning map for the TOTO using attributes green and price. 2. How might...

1. Create a positioning map for the TOTO using attributes green and price.
2. How might regulatory activities affect TOTO as it enters markets?

TOTO: Positioning Plumbing Products Globally

Solutions

Expert Solution

1- TOT0-

1- TOTO is the world's largest manufacturer of toilets, producing more than 7 million units each year .

2- The Japanese company was founded in 1917, with TOTO.Being an abbreviation of the two Japanese words forming its full name .TOYA TOKI, Although the company manufactures a complete line of plumbing supplies the company is best known for its high and innovative toilets.

3- TOTO enjoys a consistent position across markets and differentiates from competitors by being the leader in innovation.

4- With 5% of revenues going to research and development (R &D) and an army of 1,500 engineers thd company remains at the cutting edge of toilet technology.

5- TOTO holds its position based on beliefs about company innovations combined with an emphasis on sustainability.

6- TOTO'S  success has been largely based on its invention.

7- Ths company began designing water conserving toilets before many governments began to focus on this improvement.

8- As TOTO  has become increasingly dominant in the Japanese market, with over 70% of households using the company's products. Global expansion has become necessary to continue growth.

2- Regulatory Activities

- Governments have the capacity to make broad changes to monetary and fiscal policy, including raising or lowering interest rates, which has a huge impact on business.

1- They can boost the currency, which temporarily lifts corporate profits and share prices, but ultimately lowers and spikes interest rates.

2- Governments can intervene when companies or entire - segments of the economy are falling, or threatening to undermine the whole economic system, by providing bailouts.

3- Governments can create subsidies, taxing the public and giving the money to an industry, or tariffs, adding taxes to foreign products to lift prices and make domestic products more appealing.

4- Higher taxes and fees, and greater regulations can stymie businesses or entire industries.

3-Perceptual Map -

Example-This Example is based on breakfast , cereals similarly TOTO Map is based on Consumer demands.

-1- If the Map's purpose is to investigate how consumers feel about breakfast ,cereals.

-2-The Y axis might have "great taste "at one end, and "poor taste" at the other .

-3-The X axis might have "low "nutritional value" at one end, and" high nutritional value" at the other end.

-4--Each cereal brand is then plotted on the perceptual map based on how consumers perceive thr brand's products relative to those attributes .


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