ADAMSON UNIVERSITY

College of Business Administration

Marketing and Operations Management Department

Distribution Management
Case Study

Submitted by:
Ramos, Justin Mei L.
Ramos, Andrea Grace
Rivera, Andrea Nicole S.
Paronda, Joshua
Limjoco, Lloyd Christian
Segura, Ralp Nickol

Submitted to:
Mr. Rodel Pomentil
Date:

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Table of Contents
Chapter I - The Introduction
1.1 Description of the Firm……………………………………………..3
1.2 Organizational Management………………………………………..4

Chapter II - Assessment of current distribution management

practices
2.1 Designing channel structures……………………………………….5
2.2 Selecting Channel Members………………………………………..6
2.3 Evaluating Channel Members performance………………………..6

Chapter III- Analysis and Interpretation

3.1 Table for designing Channel structure………………………….......7
3.2 Table for selecting Channel Members…………………………...…8
3.3 Table for evaluating Channel Members…………………………….9
Chapter IV - Recommendation Findings and Strategy
4.1 Recommendation………………………………………………….10
4.2 Findings and Strategy……………………………………………..12
4.2 References…………………………………………………………15
Chapter V - Appendices
5.1 Survey Questionnaires…………………………………………….16
5.2 Picture with………………………………………………….…….21
5.3 Simple Interview…………………………………………………..21

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I. Introduction

Description of the firm

Toyota Motor Philippines Corporation (TMP) is considered as one of the biggest

and most trusted automotive companies in the world, preferably the largest in the

Philippines. It was established on August 3, 1988 as a partnership between Mitsui & Co.,

Ltd. Toyota Motor Corporation, and GT Capital Holdings, Inc.has 20 different Toyota

models, the largest automobile lineup. In terms of its sales distribution and service

facilities, it has more than 70 dealers around the country, including Lexus Manila, Inc.

The best-selling Innova and Vios are currently made by TMP. As of the end of December

2020, its manufacturing facility will be able to operate on two shifts and produce over

55,000 units annually. In line with this is the TMP’s vision to be the Top Automotive

companies through executing their mission to bring the best and high quality vehicles by

continuously improving their products, with providing great customer service and

relationships to the potential customers, and to deliver their products on time to meet the

customer demand and satisfaction.

In addition to offering chances for growth and advancement in communities, TMP sees it

as its duty to give people in future generations greater mobility. TMP has organized all of

its corporate social responsibility (CSR) projects around four main pillars or categories:

community service, health, education, and the environment. Along with a number of

landmark initiatives, Toyota Motor Philippines Foundation, TMP's social and

humanitarian branch, carries out its CSR commitments (TMPF).

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Organizational Management

Comparatively speaking, Toyota's new organizational structure offers more

flexibility than the company's previous, centralized hierarchical organizational structure.

The corporation is now better prepared to respond to local market conditions thanks to

this new structure. Toyota is able to respond to problems quickly and to produce goods of

greater quality thanks to its flexibility. However, the global organization's grip over

headquarters has diminished as a result of the growing decision-making authority of

regional leaders. Even so, this organizational structure supports the survival and

expansion of the business. Toyota's organizational structure is divided into divisions. In

2013, this structure underwent extensive modifications. This was perceived as a reaction

to the safety concerns and associated product recalls that began in 2009. Toyota had a

strong, centralized worldwide hierarchy in its previous organizational design, which was

more akin to a spoke-and-wheel structure. All of the important choices were made by the

company's headquarters in Japan. All communications had to go through the headquarters

and were not shared between individual business units. The lengthy response times of this

organizational structure to safety concerns, however, drew harsh criticism. Following the

2013 reorganization, Toyota's new organizational structure now primarily consists of the

following features: Global hierarchy, Geographic divisions, Product-based divisions.

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II. Assessment of Current Distribution Management Practices

The headquarters and manufacturing facility of Toyota Motor Philippines (TMP)

are located inside the 82-hectare Toyota Special Economic Zone (TSEZ) in Santa Rosa

City, Laguna. TMP mainly manufactures the Innova and Vios, which are both top sellers.

Its current manufacturing facility has the ability to operate on two shifts and produce

approximately 55,000 units* annually. The nine (9) organizational units which make up

TMP's business are: marketing, manufacturing, general administration, comptrollership,

treasury, purchasing, corporate affairs, vehicle logistics, and affiliate operations support

& audit. 3,781* Team Members make up the company's regular and contractual labor

force.

Designing Channel Structures

Toyota Corporation is a hands-on organization, therefore in order for the product

purchase to be successful, the company utilizes Channel Structures which not just

consider their decision, but the suggestions, comments of their Channel Members, for it

will be difficult to aim the goal if the other channel members are not obliged or not able

to do so. The Organization is also open for another Channel Structure at time of need, this

is a good strategy because having plan b is better than nothing because Business success

is not always possible in the business industry.

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Selecting Channel Members

Selecting Channel members is one of the crucial part in the Business, since

TOYOTA Corporation is a big business firm, the Selection of Channel Members is strict,

they have to undergo interviews, background checks and the background of their

accomplishments such as their contributions to their former job, or if they are just fresh

graduate, they need to undergo trainings and seminar before facing the real corporate

world in the firm. Loyal and trustworthy channel members the better since, they have the

bigger role in the channel of distribution, they have to be well-disciplined and

responsible.

Evaluating Channel Members Performance

The Toyota Corporation is known for its quality products, which are distributed

throughout the world. The company holds many meetings to discuss and evaluate their

channel members. They want to ensure that their channel members are providing them

with the best possible service and product. This is why they hold regular meetings with

their channel members to discuss their performance and make changes if necessary.

In order to evaluate their channel members, Toyota Company uses a variety of methods.

For example, they have a customer satisfaction survey that asks customers about their

experience with Toyota Company in terms of product quality and service delivery. They

also conduct focus groups with their channel members to get feedback from those who

interact with them on a daily basis like their employees. They hold meetings typically for

the sales employees to know if they have reached their target quota. After analyzing the

channel members of Toyota, we discovered that the company has a very strong presence

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in all regions of the country and also has a large number of dealerships. The company's

channel members are spread out across all regions, which is a strength that helps it to be

successful in selling its cars.

The company has a large number of dealerships in most states and have done an excellent

job at promoting their brand. The dealerships are located in areas where there are high

concentrations of people who could be interested in purchasing the vehicles from Toyota

and therefore make it easier for them to sell their product.

III. Analysis and Interpretation

The method used in the following study to analyze and measure the data are

1. Likert scale (Range)

2. Weighted mean

Variable 1.1 Table for Designing Channel Structure

Range: 1.00 - 1.75 SD 1.76 - 2.50 SDA 2.51 - 3.25 SA 3.26 - 4.00 STA

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As the table shows, Question number 1 got the highest average of 3.70, and
Toyota actively allocates its distribution of tasks to develop an effective and efficient
channel structure. Toyota takes effective distribution of tasks for their employees for a
well-organized job. This table shows that Toyota companies evaluate market geography,
size, density, and behavior. Proactively distribute distribution tasks to develop an
effective and efficient channel structure. It is the route through which goods, information
and finance flow. Some manufacturers work directly with their customers, but most use
distribution channels to get their products to consumers. Creating and maintaining sales
channels requires a great deal of thought, effort, and investment.Toyota companies fairly
determine the selection of intermediaries and channel members as a whole. It also
assesses product demand and supply.

Variable 1.2 Table for Selecting Channel Members

The Toyota company does an excellent job of negotiating and promoting their products.
The Toyota company maintains good relationships with prospects and researches their
backgrounds. While people are accustomed to ridesharing and electric vehicles, self-driving cars
are being deployed on a massive scale. This connectivity has changed consumer beliefs about
ownership and community asset sharing. It also set environmental standards and technical
standards. As the table shows, Question number 3 and 6 got the highest average of 3.50. This

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shows that the Toyota company is really doing its job well-organized when it comes to selecting
its channel members. They professionally negotiate with their channel members.

Range: 1.00 - 1.75 SD 1.76 - 2.50 SDA 2.51 - 3.25 SA 3.26 - 4.00 STA

Variable 1.3 Table for evaluating Channel Members

Range: 1.00 - 1.75 SD 1.76 - 2.50 SDA 2.51 - 3.25 SA 3.26 - 4.00 STA

Channel partners are actively involved in your business and are encouraged to collaborate
with others to complete overall tasks. Toyota standardizes service at all showrooms, dealers and
service centers. To this end, Toyota conducts its business activities based on the principle that all
people working at Toyota, including employees, suppliers, and cooperating companies, are
healthy both physically and mentally, and continue to play an active role in a safe work
environment. We believe that ensuring safety and health is one of Toyota's most important
initiatives over many years, and we have pursued our business activities in accordance with the
Toyota Motor Corporation Health Declaration and Basic Safety and Health Principles. According
to the data, Question No. 8 received the highest average score of 3.3, showing that the Toyota
channel member is actively interested in their tasks. that everyone on the channel is working
effectively together and performing their duties.

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IV Recommendation, Findings and Strategy

Recommendation

Toyota Corporation- There are several reasons why Toyota Corp. should evaluate
environmental variables. One reason is that doing so can help the company identify potential
risks and opportunities. Another reason is that evaluating environmental variables can help the
company comply with relevant laws and regulations. This is important because non-compliance
can result in fines and other penalties. Finally, evaluating environmental variables can help a
company enhance its reputation and build trust with stakeholders. This is because stakeholders,
such as customers and investors, are increasingly looking for companies that are environmentally
responsible.

Consumers- It is important for consumers to evaluate environmental, psychological, and social

variables when buying a car because these factors can impact their decision-making process and
ultimately affect their satisfaction with the car. Environmental variables, such as the availability
of charging infrastructure for electric cars or the availability of public transportation, can
influence a consumer's decision about what type of car to buy. For example, if a consumer lives
in an area with limited access to charging stations, they may be less likely to consider buying an
electric car. Psychological variables, such as a consumer's personal preferences and attitudes, can
also impact their decision about what car to buy. For example, a consumer who values
environmental sustainability may be more likely to choose a hybrid or electric car over a
gas-powered car. Social variables, such as a consumer's social network and the opinions of
friends and family, can also play a role in the car-buying process. For example, a consumer may
be influenced by the recommendations of friends or family members who have owned a
particular make and model of car.

Channel members- In the survey provided, the lowest rating question states that the Toyota
Corporation evaluates the environmental variables. Toyota and its channel members should
evaluate environmental variables to understand the external factors that may impact its business.
These factors can include things like changes in the economy, shifts in consumer preferences,
and new technologies. By understanding these factors, a company can anticipate changes in the
market and adapt its business strategy accordingly.

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Summary

Toyota Corporation I being widely known in the business industry as a good car
manufacturer that provide good service and high quality of products.In terms of Designing
Structure, to create an effective and efficient channel structure, Toyota actively and equally
assigns the distribution task or duties and the way Toyota selects Channel members, they are
strict and concretely checking the background of the prospecting channel members, for they have
the criteria, and it is good for the name and image of the company the study shows how good
Toyota corporation is in negotiating with the channel members and the members inside the firm.
The Strongly Agree is the most chosen answer by the Participants, this reflects on how good and
neat the service inside and outside the firm, the way the corporation serves best equally and this
is considered as the edge of the company against their competitors. Although there are still
factors that they need to improve, in regards to the advantages, they are good at coping up and
meeting their customers’ demands and needs with pure satisfaction.

Conclusion

Based on the findings derived from this study, it was

● The results showed in Designing channel structure that the prospects prefer that Toyota

corporation evaluates the Environmental variables: physiological, psychological, and

social. Then most of the prospects highly prefer that Toyota company evaluates the

market geography, size, density and behavior.

● The result showed in Selecting channel members the prospects prefer that Toyota

corporation provides competent customer service. Then most of the prospects highly

prefer that the Toyota company has a selection criteria and does a great job at negotiating.

● The result showed in Evaluating participants that the prospects concur that in Toyota

corporation training is provided to equip the employees with the required skills before

they are assigned to work. Then most of the prospects highly prefer that Toyota channel

partners are actively involved in their business.

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Findings and Strategy

TABLE 1:

● Designing channel structure

- Majority of the respondents enticed about the channel configuration of Toyota
Motor Corporation (re: Question 1-2). With this, Toyota will drive the sustainable
transportation society, enhancing lives throughout the world with the safest and
most efficient means of transporting passengers (re: Question 3-5). In addition,
the respondents are well intrigued about the differentiation strategy of Toyota as
they manufacture plants and logistics operations, they reduce CO2 emissions
through innovative projects that cut energy and fuel consumption and increase the
use of renewable energy. (re: Question 6-8). Generally, the corporation has
received excellent reviews regarding Channel Structural System.

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TABLE 2:

● Selecting channel members

- When it comes to alliance partners, the respondents are unanimous (re: Question
1-2). Toyota is mostly reliant on its dealerships for product sales. Toyota dealers
rely on the holding company to design cars that meet the needs of their customers.
As a result, our respondents believed that the Toyota Motor Corporation when it
comes to management ability of their prospects and well balanced criteria are one
of the best assets that Toyota has (re: Question 3-5). With these being said, Toyota
vehicles have a higher resale value than most other car brands. Toyota cars are
affordable compared to their rival brands. This element has also made a
significant contribution to why they're so popular amongst customers (re:
Question 6-8).

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TABLE 3:

● Evaluate Participants
- In terms of evaluation, the majority of participants have the most trust in
negotiations (re: Question 1-2). “Never be satisfied with what you have got” is a
core principle at Toyota. In terms of motivational strategy, the said corporation
arose against the other rival brands (re: Question 3-5). Toyota earns the top spot
as the best automaker for dependability. With this, the respondents are well
persuaded about these creativity and good products that Toyota showcased around
the world. It's not surprising that, of all the cars and utility vehicles on the
economy, Toyota products are the ones that people prefer by keeping them longer
than the competition (re: Question 6-8).

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V. References

Distribution: Keeping it simple, the ‘Toyota’ way! (2016, May 16). T1 2016 MPK732 Marketing
Management (Cluster A).
https://mpk732t12016clustera.wordpress.com/2016/05/16/distribution-keeping-it-simple-the-toy
ota-way/

Who we are. (n.d.). Toyota Motor Philippines - Official Site.

https://toyota.com.ph/company-profile

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VI. Appendices

Survey Questionnaires

Name (optional): Grade & Section:

Sex: Age:

Directions: For each statement in the questionnaire, please indicate how much you agree or
disagree with the statement by putting a check in the box on the right side of each
statement. There are no right and wrong answers. Your answers will be kept strictly
confidential, and you will not be identified.

Scale:

1 - Strongly Disagree

2- Disagree

3- Agree

4- Strongly Agree

Designing channel structure

4 3 2 1

Strongly Agree Disagree Strongly

Agree Disagree

1. Toyota actively allocates the

distribution task/s in attempt to
develop an effectively and
efficient channel structure,

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2. The Toyota company

Develops possible alternative
channel structures.

3. The Toyota company

evaluates The Market
Geography, size, density and
behavior.

4. The Toyota company.

Evaluates the Product supply
and demand

5.The Toyota Company

evaluates the Company
variables: Size, Financial
capacity, Managerial expertise,
objectives and strategies.”

6. The Toyota company

evaluates the Intermediary
variables: Availability, cost
and services.

7. The Toyota company

evaluates the Environmental
variables: Physiological,
Psychological and social.

8. The Toyota Company

decides fairly with the choice
of intermediaries, organization
of relationships and the whole
channel members.

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Selecting channel members

4 3 2 1

Strongly Agree Disagree Strongly

Agree Disagree

1. Toyota company studies

the background of their
prospects.

2. The Toyota company

Secures the prospective
channel members as an actual
channel member.

3. The Toyota company has a

selection Criteria.

4. The Toyota company

measures the Management
Ability of their prospects.

5. The Toyota company

maintains a good relationship
with their prospects.

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6. The Toyota company does

a great job at negotiating.

7. The Toyota company

advertises their product well.

8. Provides competent
customer service.

Evaluate Participants

4 3 2 1

Strongly Agree Disagree Strongly

Agree Disagree

1. Toyota has standardized

service in every showroom,
dealer, and service center.

2. The Toyota company

maintains a good relationship
while negotiating the best
price.

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3. Training is provided to
equip the employees with the
required skills before they are
assigned to work

4. Internal motivation methods

(safe working conditions, good
pay, job rotation, etc) are used
to motivate channel members.

5.External motivation methods

(e.g. rewards, commendation,
and measurement towards
goals) are used to motivate
channel members.

6. Channel members are

encouraged to cooperate with
others to complete the whole
task

7.Channel members must

evaluate the inventory of
products.

8. Channel partners are

actively involved in your
business.

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Picture with the Interviewee

Simple Interview

Justin Mei Ramos, the representative of Group 1. She had the chance to visit their office
in TOYOTA Abad Santos last Friday, December 9, 2022 at exactly 8:00 in the morning. greeted
her formally by introducing myself and telling about the purpose of the Interview. Ms. Jacky
Paolo introduced me to some of the members in their workplace and explained their roles in the
field. To start the interview she asked her first about her experiences in Toyota Company, she
then answered that she’s been working there for almost 6 years, and she experienced facing
different challenges from the customers and inside the company. First she asked him about How
they design their channel structures. She mentioned that Toyota Company is very handful in
terms of their environment and their services. They also consider their market size, the
recommendations, reviews and complaints from their customers, they evaluate every review they
receive then add it to their future plans. For the next category, she asked Ms. Pablo on how they
select their channel members. She said that since TOYOTA Corporation wants to give or provide
the best service to their customers, in order for them to select their Channel members is by
checking their background and experiences, and test them if they are worthy of the agreement or
partnership. Lastly she asked Ms. Pablo about Evaluating their Participants, since they have
selling agents for their customers, every customer that they manage gave reviews and comments
about their experiences. According to Ms. Pablo they are following the “first touch” basis, where
the first agent to approach the customer is considered as their permanent agent. They also have
post-purchase reviews that the customer answers if they are satisfied with the product and
services after the sales. At this point she realized that TOYOTA Company really does value their
Customers and consider their comments as an opportunity for growth in their company.

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Prepared by:

Sir. Rodel Pomentil

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