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Toyota 2009-2010 Recall Case StudyCrisis CommunicationPaige Leary JMA 410 PR Strategies & Case StudiesDuquesne UniversityDiane WuycheckTable of ContentsCase Overview_______________________________________________________3The Recall___________________________________________________________4Background of Toyota_________________________________________________7Effects of the Recall___________________________________________________8Cross- Culture Complications________________________________________9Communication Methods______________________________________________10Toyota Advertisment__________________________________________________11Toyota’s Target Market________________________________________________15Evaluation of Target Market________________________________________16Toyota Objectives____________________________________________________17Taking Action___________________________________________________20Communication Stategies_____________________________________________22Evaluations_________________________________________________________ 26Conclusion__________________________________________________________28Appendix___________________________________________________________30References__________________________________________________________32Case OverviewThis study focuses on Toyota’s 2010 vehicle recall and their response to the crisis. Known as one of the most reliable and popular car brands, Toyota faced major scrutiny and negative reactions from the recall. The company recalled over 8.5 million vehicles due to sticky gas pedals and unintended accelerations, which lead to serious accidents and even, resulted in death. Used to having a good reputation, Toyota wasn’t used to this bad reputation and negatively and needed to come up with a plan to deal with the public and restore the brand. The Japanese company had serious complication while creating the perfect method of communication because of the cultural differences between Japanese and American public relations. As time went on the public started to see the brand as untrustworthy and unsafe because of the quality and lack of information Toyota was releasing to the public. Finally, Toyota began releasing information about the recalls, apologies and solutions on how they plan on fixing the problem. As the crisis started to relax, Toyota created safety campaigns and advertisements that proved their mission of safety and customer satisfaction. They connected with customers on another level through social media and survey communication and answered questions they had. Toyota had to change their targets with these new campaigns and focus on the big picture how the brand is perceived as a whole. Though their crisis control methods were not flawless, they worked through the problem and have rebuilt their reputation in the past six years. Through the crisis Toyota used strategies like creating a new slogan, better technology and releasing new vehicles, which helped, resurface the brand and take heat off of the crisis. These strategies are seen still to this day and continue to benefit the company. The crisis as a whole was learning experience for Toyota because they have never had a serious crisis before. They now have a plan for any future crisis or complication in any type of culture. The managers of the company have become better leaders and understand the importance of cross-cultural communication and are better prepared any issue that may arise. Toyota now is back to focusing on their main mission of safety and customer satisfaction. The Recall ???????At the end of 2009, Toyota Motor Corp. was one of the top leaders in the auto industry. ?However, within a few months, Toyota recalled over 8 million of their vehicles to address the serious issue of “unintended acceleration”, brake problems and “sticky gas pedals”. ?National attention started focusing on Toyota on September 10, 2009 when a recording of a 911 call of a car crash in California, killing a police officer and his family, was released. ?The crash was caused by “uncontrollable acceleration” and led to 3.9 million Toyota vehicles to be recalled on September 29, 2009 (Quelch et al, 2010).???????In early February 2010, 2.3 million vehicles were recalled for sticking accelerator pedals, which resulted in a suspension of eight models in North America, Europe and China. ?The third recall was for brake problems on the company bestseller, Toyota Prius Hybrid. ?The recalls totaled about 8 million vehicles worldwide in 2009-2010, with six million in the United States (Quelch et al, 2010).???????The Department of Transportation and the National Highway Transportation Safety Board (NHTSB) increased the investigation on Toyota after the large amount of recalls and conducted hearings in March 2010. ?This was something Toyota was not used to because Toyota had a positive brand image before the recall and didn’t face a lot of scrutiny at the beginning of the crisis (Jones, 2010). ?However, the responses from Toyota’s public relations team were considered poor and the public saw Toyota’s responses as insufficient. ?The public, customers and future customers started to see the company as dishonest and untrustworthy.Toyota vehicle sales in the U.S. fell 16% in January 2010 and 8.7% in February compared to the previous year. ?Toyota shares lost 11.6% through February 23, 2010 (Quelch et al, 2010). The Toyota recall crisis was a nationwide news story with media coverage in newspapers, blogs, forums and television news, which presented a massive crisis for the motor company. (Fan, 1988; Fan & Cook, 2003)Below is a chronological timeline of Toyota recalls from the Guardian Newspaper in 2010.September 2009: Toyota announces the biggest recall in its history over fears involving almost 4m vehicles in the US that accelerator pedals could become trapped in floormats and "may result in very high vehicle speeds and make it difficult to stop the vehicle, which could cause a crash, serious injury or death". 21 January 2010: Toyota says it will recall around 2.3m vehicles in the US to fix potentially faulty accelerator pedals. The action comes on top of the ongoing recall of some 4.2m vehicles over "pedal entrapment" risks.26 January 2010: Toyota says it is suspending US sales and halting North American production of eight models involved in accelerator pedal recall, including the country's best-selling Camry.28 January 2010: Toyota says it will widen the net to include Europe - potentially involving Britain - and China in its recall scheme. US congressional investigators launch probe into accelerator problems. US Congressional investigators request information from Toyota and US safety regulators on the recall ahead of a hearing on 25 February.29 January 2010: Toyota says recalls in Europe could reach 1.8m vehicles and affects eight models including Yaris and Auris.1 February 2010: It emerges that Toyota drivers will have to wait at least three weeks before finding out if they own one of the estimated quarter of a million cars in the UK suspected of having "sticking" accelerator pedals.2 February 2010: Toyota's executive in charge of quality control, Shinichi Sasaki, says the "unprecedented" operation is likely to have a bigger effect on sales than previous recalls and had already hit sales in January.3 February 2010: Toyota owners in the UK and US are advised by lawyers to stop driving their cars immediately amid growing concern over the potentially lethal accelerator fault. A new defect is reported in Toyota's Prius hybrid model that could result in yet another recall. US authorities say they are investigating 100 complaints, with Prius owners reporting momentary loss of braking ability at low speeds on bumpy roads. Toyota in the UK says it has sent details of the 180,865 affected UK vehicles to the DVLA and is working with the DVLA to identify and contact owners "as quickly as possible". It tells affected drivers that a 30-minute repair will be carried out at Toyota-approved service centers.4 February 2010: Toyota admits it will suffer $2 billion as a result of the global safety recall affecting millions of cars. The Japanese government urges Toyota to look into 77 reported cases of braking problems among new Prius models sold in Japan.5 February 2010: It emerges Toyota treated the accelerator fault as a quality issue rather than a safety issue when it first became aware of the problem in the winter of 2008/09. It failed to inform the UK's Vehicle and Operator Services Agency (Vosa), which registers recalls on cars, about the fault until 22 January 2010, after the government demanded information.Toyota's president, Akio Toyoda, finally emerges to apologize for the sticky accelerator problem. "We are in the midst of a big crisis and face big challenges ahead," Toyoda says.9 February 2010: Toyota confirms a global recall of all third-generation Prius cars manufactured before 27 January 2010. It affects 8,500 cars in the UK, where the latest Prius model went on sale last August."This recall will consist of a software upgrade in the anti-lock braking system. In the meantime, the cars are safe to drive. At no time are drivers without brakes," ToyotaGB insists.17 February: Toyota announces it will install a brake-override system in all future models worldwide. It is considering a recall of the Corolla because of possible power steering problems. The US government demands that Toyota hand over documents to show whether it acted promptly with the safety issues in its cars.19 February: Akio Toyoda bows to US pressure and agrees to appear before a congressional hearing into the crisis. The company also confirms it will confirmed it would suspend production at its plant in Burnaston, Derbyshire, for two weeks.22 February: Leaked emails show that Toyota staff boasted about how they had saved the company $100m by persuading American regulators that they did not need to implement a full recall over problems with its floor mats.23 February: Toyota faces the prospect of criminal charges after a US grand jury issues a subpoena, demanding more evidence relating to the recalls. And a man jailed after crashing his Toyota, killing three people, demands a retrial - and relatives of the victims say they support him (The Guardian, 2010). Background of Toyota 3086100243840000???????Toyota is a Japanese automotive manufacturer, founded in 1937 by Kiichiro Toyoda, headquartered in Toyota, Aichi, Japan. ?It is the 13th largest company in the world by revenue and is made up of over 330,000 employees worldwide (America’s Best Employers). The companies mission statement is "To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America"(Toyota Mission). They are ranked #257 as the best employer and as the Worlds 8th most Valuable Brands as of May 2015 (America’s Best Employers). Their philosophy of Kaizen, meaning continuous improvement, is found in their production, employees, business models and is the heart of the company (). The Effects of the Recall???????According to Akio Toyoda, Toyota’s President, the company’s traditional priorities are safety first, quality second, and volume third. ?However, According to Quelch et al (2010) and Steinmetz (2010), Toyota’s rapid growth put strains on design, engineering, and manufacturing which lead to quality issues and recalls which began in 2003. ?This shift in Toyota’s priorities away from quality and onto quantity reveals a problem with their business policies and communications team. This change in priorities is what resulted in the life threatening automotive issues and lead to the millions of recalls. ?“We [Toyota] pursued growth over the speed at which we were able to develop our people and our organization,” which “resulted in the safety issues (United States Cong. 2010).” Below is the list of affected vehicles according to the Dickinson Press.Avalon: 2005-2010 Corolla:?2009-2010 Camry: 2007-2010 Highlander: 2010Sequoia: 2008-2010 Matrix:?2009-2010 RAV4:?2009-2010 Tundra: 2007-2010Tacoma: 2005-2010 VENZA:?2009-2010 (Call, 2010)After Toyota had recalled a total of 8.5 million vehicles American Toyota owners had become very distrustful towards the company that was previously known as one of the safest car brands. ?This bad brand image didn’t happen because of the company’s actions, but because of its inactions during the crisis. ?Their public relations response time to the recall crisis was slow, which made it seem like the company had something to hide or that they didn’t have a solution. ?Toyota CEO, Toyoda, didn’t make an official statement until February 5t, 2010, six months after the first accident was recorded (“A Timeline of,” 2010). Toyoda statement, “Toyota has, for the past few years, been expanding its business rapidly. Quite frankly, I fear the pace at which we have grown may have been too quick. I would like to point out here that Toyota’s priority has traditionally been the following First; Safety, Second; Quality, and Third; Volume. These priorities became confused, and we were not able to stop, think, and make improvements as much as we were able to before (Testimony to House).”Cross- Culture ComplicationsAlthough it seemed like Toyota wasn’t being transparent with the public they had been taking serious action behind closed doors. ?The misconception was because Toyota practiced a Japanese style of public relations, which is very different than what American public relations have been taught. These cultural differences made it very difficult to correctly inform their target publics in Japan and America, which caused confusion and serious backlash the public. ???????When a company is responsible for a crisis in American business the public expects quick answers, explanations and apologies for the problems they caused. In Japan however, the president or CEO of a company will bow as a form as apology and regret for the problem. ?In the CBS article, “Toyota’s President Getting a Harsh PR Lesson”, Toyoda is scrutinized for his dishonesty and poor management skills because he follow Japanese business culture of making a decision through quiet conversations between employees and company leaders (Reid, 1999). Communication MethodsToyota dealerships all over the country were receiving calls about what to do with vehicles that have been recalled. The recalled vehicles sales were being suspended and owners of these vehicles could take their car to a Toyota dealership to have the problem fixed. These of the recalled vehicles and promised to fix any of the vehicles if they were brought into a dealership. Scott Ehrlich of Ehrlich Motors, a Toyota?dealership in Greeley, Colorado said the company is working on getting parts to fix the problems with the recalled cars that were on the road. "There's a peace of mind knowing if you come in and perform the (fix) on the car, the chances of (the gas pedal sticking) are less to none. Chances of it happening now are extremely slim to none. We've not had a single incident in Greeley, Colorado. Our dealership is not aware of any (Dunn, 2010)." These free inspections are for any Toyota vehicle, recalled or not, to give Toyota owners some comfort knowing that their car would not have any unintended acceleration or sticky gas pedals. Ehrlich thinks that Toyota is doing everything in their power to give customers the best service through this crisis. "This is a voluntary?recall.?Toyota?was determined to do this. And they're going way above and beyond (Dunn, 2010)."???????As the heat of the recall started to distinguish Toyota took steps to improve the company’s brand image and communication methods. ?They released an advertising campaign showing that they are committed to the quality and safety of their vehicles and dedication to keeping their drivers safe. “What we're dealing with is a perception issue, and brand perceptions are not brand realities," said Bob Carter, Toyota Division general manager. "If a customer has removed us from their consideration list, it was 365125047244000because of a perception of Toyota safety (Retchin, 2010)." ?Toyota Advertisements2975610259842000Carter said the theme of safety for Toyota will be a long-term advertisement campaign for the brand until the customer’s perception of the brand change and become trustworthy again. ?"If you look at various attributes of cars -- performance, handling, value -- those are set like a volume knob [on a stereo] by consumers," Mr. Carter said in an interview. "But safety, that's a light switch. Either you have it or you don't (Retchin, 2010)."3200400170815000The advertisements featured in the new Star Safety System (See Appendix 1) included VSC: Vehicle Stability Control, TRAC: Traction Control, ABS: Antilock Braking System, EBD: Electronic Brake-force Distribution, BA: Brake Assist and SST: Smart Stop Technology. According to Toyota’s public statement, “All 2011 Toyota models came standard with the Star Safety System.? This integration of active safety features is designed to protect occupants by helping drivers avoid accidents in the first place. The Star Safety System has been developed to help you drive your vehicle with confidence, knowing that, when you need it most, the car’s safety systems can help you stay in control. Every time you climb into your vehicle, Toyota’s Star Safety System can help to keep you out of trouble, whether it’s a run to the corner store or a long road trip with friends or family (Toyota STAR).” An example of the campaigns television advertisements is a story of a mother who is watching her son play football discusses the technological advancements of Toyota’s vehicles. ?She then talks about the safety testing of their vehicles, sending a message to the target audience that safety is Toyota’s number one priority (Toyota Crisis Management Campaign, 2010). This advertisement targets middle class families who believe safety is the most important factor of a vehicle. ???????????Overseeing the campaign was Vice President of Marketing, Bill Fay, who understands what their publics what in a campaign. ?"We need to make an emotional connection with people who own or are considering our product. We need to address the concerns of the customer, based on what we've been through this year." Fay ran the safety campaign through 2011 and Toyota is still a brand that focuses on safety. "This is not a short-term thing where we run an execution or two," Mr. Fay said. "We still have QDR. We just have to assure customers that's the case (Retchin, 2010)." ?The other campaign Toyota used was the “Commitment Campaign”. ?These advertisements highlight the history of Toyota in America over 50 years. ?It states that their top priory has always been safety, reliability and high quality since their early years in America and is accretive of the fact that they have not been living up to this reputation through the recent events. ?This campaign shows Toyota accepting responsibility for the problem with their vehicles and that they have fixed these problems. They used television ads and also print which were published in newspapers, magazines and online (See Appendix 2). ?The ads were in black and white and showed photos of old Toyota dealerships, workers and customers in hopes to restore their customer’s faith in the company (Toyota Crisis Management Campaign, 2010). Toyota used these prints to show their clientele that they are a historically reliable company and have been for many years. They want to show that although they are having a problem they have had many good years of safe products. Toyota also had many press releases that were updates regularly throughout the crisis. Rachel Knoespel of Marquette University studied these press releases and how Toyota responded to the incident.“I studied all of Toyota’s public press releases which were found on Toyota’s website, though a close textual analysis. This is where I discovered Toyota responded in three distinct phases during only two of the crisis life cycle stages, which were the current and critical stages. The themes that emerged were: Phase 1 where Toyota spoke as a united front and focused on its past performance; Phase 2 where Toyota finally provided a masked apology while also explaining its superior technology and exuding confidence; and Phase 3 where Toyota began to feel threatened and lashed back with a defensive response. I concluded by examining how the themes worked together. Using masked apology and confidence together seemed to reduce the strength of Toyota’s apology (Knoespel, 2011)”. 3771900-57150000Lastly, Toyota turned to social media to directly communicate with their customers. On February 8, 2010, President of Sales, Jim Lentz, responded to 10 questions out of 1,400 that were submitted using a Digg Dialog website. The questions and answers were compiled into print advertisements helped to improve customer communication (Christians, 2015). The ads were called “Consumer Questions” and are still posted on the Toyota website (See Appendix 3 & 4).(Toyota News)This crisis was extremely detrimental for Toyota because they have always been one of the top global brands. They maintained a positive record in regards to other car companies and have had great customer feedback. The severity and frequency of the accidents causes a huge news presence and which forced Toyota to rebuild their brand to the prior positive image (Knoespek, 2011). Toyota’s Target MarketThe United States holds up to 30% of Toyota’s total consumers. Due to the number of vehicles models and difference in pricing, Toyota bases their target market on the specific vehicle and believes in the philosophy of “Right Car in the Right Place” for the right person (Dobin, 2002). However, they have a clear focus on customer satisfaction and a mission “to sustain sustainable growth by providing the best customer experience and dealer support" which is posted on their website (Toyota). Their demographic are those who have a license, especially families who are environmentally aware. Their customers live in both rural and urban settings and travel via car on a daily basis. They are value oriented, price conscious and believe safety is the most important factor of a vehicle (Feenstra, 2014). Due to the mass number of vehicles recalled in 2010 and the variety of models, Toyota had to target a larger audience than usual. They weren’t focusing on price, location or the environment and instead put all their focus in safety. They needed to connect to all of their existing customers, future customers and the entire nation because of the massive news coverage the crisis was receiving. Those that were most affected were the owners of the recalled vehicles because they were the most in danger of a potential accident. Their first priority was to connect with these customers with a written apology, which stated: “For two generations, we have provided Americans with cars and trucks thatare safe and reliable. And we fully intend to produce even safer, high quality vehicles in the future...” He continues saying, “We acknowledge these mistakes, we apologize for them and we have learned from them (Knoespek, 2011). These apologies focused on reliability and Toyota’s self-acknowledgement of their mistakes. Evaluation of Target AudienceThe audiences that were targeted were the best and most effective group for Toyota. Although they didn’t follow a traditional crisis control model they did what they felt was right in the moment and complied with cultural differences along the way. The sincerity of the apologies was questions by some of the public because of the way they defended the company, which was off putting (Knoespek, 2011). Instead of telling the public the positive past about the company they should have sincerely apologized, confronted to issues then address their previous accomplishment to rebuild that reputation. Through SMART research (Swift Market Analysis and Research Teams) Toyota investigated consumer complaints and created advertisements that answered real customer questions. They turned to digital and social media to reach more customers and receive related questions about the recall, vehicles and future of the company. This method targeted a younger audience of involvement but answered the questions that customers of all demographics would have (Christians, 2015). Although Toyota started off in a negative light with the public they slowly figured out the best methods to involve the public and connect through these campaigns, advertisements and research methods. Toyota ObjectivesThe aftermath of this crisis left the Toyota Motor Corporation in a state of desperation, with a significant amount of damages to their brand and reputation. Toyota wanted to reassure customers that their products were of the highest quality, formulate more efficient communication systems between the United States and overseas offices, and become more transparent and honest with their customers. At this point in time, Toyota established several objectives that needed to be achieved in order to rebuild their corporation. These objectives can be categorized into three groups: awareness, acceptance, and action.Upon initial reports of safety issues with their cars, Toyota did not properly respond and were not aware of how the public felt towards their corporation. From making assumptions to jumping to conclusions about the cause of the safety defects, Toyota did not provide clear answers to consumer questions. Ira Kalb, an auto industry expert stated, “Jim Lentz, president and chief executive officer of Toyota Motor Sales, USA, went on the Today Show and looked like a ‘deer in the headlights’ in response to Matt Lauer’s cross-examination”. Americans throughout the nation negatively responded to Lentz’s television appearance; in a poll conducted prior to his appearance on the Today Show, “37% of the [population] said they were less likely to buy Toyota cars. The negative numbers jumped to 56% after he spoke” (Kalb 2012). Americans felt that Toyota’s response, or lack thereof, in this situation significantly affected the corporation’s credibility. People did not know where to look for insight, and did not know what to believe since there were so many diverse responses.An additional instance that led Americans to be doubtful of the corporation was the unprofessional communication between Toyota’s American and Japanese public relations practitioners. Overall, Toyota was stagnant in acknowledging the situation, which led consumers to assume Toyota was disguising their discretions. The initial accident that led to the death of a consumer occurred on August 28th, 2009, and throughout the year leading into 2010 about 8.1 million vehicles had been recalled. From the beginning, Toyota should have began investigating the defects in their vehicles to inform themselves of what was occurring, how to correct it, and what proof they had so far. By neglecting to do this, people became unsure of Toyota, a brand that was so well known for its quality vehicles and services, which negatively impacted the publics’ perceptions of the brand. A suggested awareness objective for the Toyota corporation is to be upfront, honest, and transparent when it comes to crisis situations, whether it be through a press release, press conference, social media etc. They need to become increasingly aware of how situations like this take a toll on not only their sales, but more specifically their brand’s reputation.By the same token, Japanese chief executive officer, Akio Toyoda, did not formally speak about the situation until February 5, 2010. This can be attributed to the differences in cultural communication between Toyota’s American and Japanese public relations practitioners. Typically, Americans expect the CEO of a company to formally acknowledge a crisis situation. However, in Japan, CEOs bow as their form of an apology. The deepness of the bow represents the severity of the apology. The cultural divide between Americans and Japanese led Toyota’s public relations practitioners to dispute over what the best course of action for handling the crisis was. Unfortunately, this ended up worsening the situation by adding unnecessary conflict and delaying the delivery of a proper response (Nichols 2011).A suggested acceptance objective for Toyota is to develop a more open relationship with their overseas offices. Meetings between the American and Japanese could take place every three months to communicate cultural norms, business practices, and brand perceptions in their countries. This would establish a better connection between the countries by enabling Toyota executives and public relations practitioners to interact, and create a firmer crisis communication plan, tailored specifically to the people of their countries. These meetings could alternate being held in Japan and America, giving each country the opportunity to physically experience the diverse cultures. Moreover, this shows Toyota’s acceptance and understanding of each other’s cultures and increases global diversity.Another acceptance issue for Toyota following the recall crisis was further investigating the safety defects. In order to begin exploring safety hazards, the National Highway Transportation Authority (NHTSA) intervened. NHTSA is the government body in charge of regulating automobile safety. To increase the accuracy of the investigation, NHTSA partnered with NASA to study the electronics of Toyota cars that were identified as the cause of the defects. Jeffrey Liker of the Harvard Business Review stated,“The only causes NASA found were improperly installed floor mats and sticky gas pedals that can be slow to return. There has been only one documented accident caused by the floor mats[…]and there have been no documented cases of accidents caused by the very small number of sticky pedals. Most accidents have been attributed to driver error. We also learned that the NHTSA knew all along that the only problems were floor mats and sticky pedals, but they had to go head with the NASA study to convince members of Congress who believed electronic were the cause of sudden acceleration despite a total lack of evidence to support that belief” (Liker, 2011).????Essentially, this investigation was conducted for the mere purpose of the NHTSA being able to prove that they made the correct assumption from the beginning of the crisis. Despite millions of dollars being spent on the NASA study, the NHTSA was able to prove that electronically there were no apparent issues with Toyota’s vehicles. A suggested acceptance objective could have been to communicate more efficiently with their key publics and target audience the fact that there was no evidence of electronic safety defects with their cars. This could have provided the factual verification that Toyota needed to reassert and establish their brand as a quality carmaker. If this was conducted in a more timely fashion, and if the information was published earlier on, Toyota’s reputation and credibility would not have suffered as greatly as it did. The distribution of this information could have occurred very simply through a press release, press conference, and on social media platforms as well.Taking Action???????Correspondingly, following the recall crisis, Toyota had a variety of action objectives to be achieved as well. One of the main actions Toyota wanted to accomplish was improving the production and development of their cars, ensuring that high quality was maintained.As previously mentioned, this recall crisis caused consumers to question the quality of Toyota cars. Between 2008 and 2010, Toyota rapidly expanded both in Japan and America, which lead to delegating increased amounts of work to employees. This negatively impacted the company because their employees were being spread too thin and were unable to keep up with the increased demands. At this point, Toyota outsourced engineers who were not as well trained and informed about the high quality of Toyota cars. Business expert Robert E. Cole discussed how, Japanese researcher, Takahiro Fujimoto believes that this contributed to manufacturing errors. He said, “In the wake of rapid growth, Toyota increasingly failed to properly evaluate and approve components designed by outside overseas suppliers. As a result, Toyota’s relationships with suppliers became less collaborative […] (Cole, 2011). A suggested action objective based on this information would have been for Toyota to hire specially qualified employees, and provide them with sufficient training to enable them to produce the best Toyota cars. Completing this action would have exemplified Toyota’s efforts to improve the quality of their cars.An additional action objective for Toyota was to, “Focus more on emerging markets for new growth, aiming for 50 percent of its sales from those nations, up from the current 40 percent” (Kageyama, 2011). Toyota identified North America as the region that they wanted to increase their sales in the most. Aiming to this target, Toyota increasingly began to promote their hybrid vehicles. In fact,“They [Toyota] announced two new, bigger versions of its hit Prius hybrid-station wagons that are set to go on sale in Japan next month. The five-seater version will also go on sale in North America later this year. The seven-seater, packed with a new lithium-ion battery, will go on sale in Europe as well next year” (Kageyama, 2011).By taking this action, Toyota made strides to increase their sales after they had plummeted following the recall crisis.Lastly, another action objective Toyota should have taken was producing an advertisement during this time proclaiming that this would have been an ideal time to purchase a Toyota. This could have been supported with evidence from the NASA investigation, which would make Toyota more credible. They also could have included a prolonged warranty to reassure customers that if any issues were to occur, that they would be taken care munication Strategies In response to this recall crisis, Toyota incorporated several campaigns to achieve their objectives. James T. Berger of the Wiglaf Journal stated, “Toyota clearly belongs in the team pictures of the worst of failures-and will pay dearly in the end. However, making the mistake is not the biggest problem; it is how the crisis is managed that transcends the crisis and transforms a mere crisis into a marketing disaster” (Berger, 2010). In this case, how the crisis was managed did in fact turn the situation into a marketing disaster.After recalling about 8.5 million cars, Toyota’s CEO Akio Toyoda was not prepared to acknowledge the public. Toyoda neglected his responsibilities as a leader and even went into hiding. This left Toyota’s American CEO, Jim Lentz to speak on behalf of the entire company by himself. Toyoda neglected the media and also continued to allow Toyota’s quality issues reach an unattainable level. Additionally, disputes over who would respond to the crisis delayed a formal apology and acknowledgment even further. As mentioned in the previous section, the initial accident that sparked this crisis occurred in August of 2009, and a formal response was not made until February 5, 2010. In relation to the awareness objective of becoming more transparent, this proved to be an ineffective strategy of handling interpersonal communication. Their stagnant response led publics to believe that they were hiding something, and consumers no longer felt aware of what exactly was going on with the Toyota brand and corporation as a whole.Despite the ineffectiveness of this strategy, Toyota launched a new slogan for their brand which was, ”Let’s Go Places.” Toyota’s Division general manager said, “It is energetic, aspirational, inclusive and very versatile. The phrase conveys a dual meaning of physically going places and taking off on an adventure, while also expressing optimism and the promise of exciting innovation that enriches people's lives (Advertising Age, 2012). Directly correlated with suggested awareness, acceptance and action objectives, this was an extremely successful form of interpersonal communication that invited consumers to “go places” with the brand. Also, this really appealed to people’s emotions by giving them hope for the corporation, and putting them at ease knowing Toyota was moving forward with strides back to what their brand used to be. This tagline was communicated verbally and non-verbally through television commercials, print advertisements, digital advertisements, through social media and many more as well. We believe this was an effective form of both verbal and non-verbal interpersonal communication, and really assisted the brand in clearing their name.Another effective strategy executed by Toyoda is that upon announcing the new line of vehicles Toyota was releasing, Toyoda made the announcement written in English. Prior to the crisis, Toyoda would have released messages in Japanese, his native tongue, but he did this as a way to appeal to the global population. He also verbally communicated in English during a press conference about the new releases, and referred to it as the world’s international language. This was an extremely successful strategy on Toyoda’s behalf, and increased his credibility, or ethos, and awareness of Toyota’s multicultural relationship (Kageyama, 2011).We agree with this strategy because throughout the crisis situation, Toyoda was depicted in a negative light and was deemed to be afraid and unaware. The decision for Toyoda to speak in English was an excellent example of good news media relations, and correlated with the acceptance objective of Toyota developing a well-established relationship with their overseas offices. Furthermore, this gave Toyoda the opportunity to exemplify that he does care about Toyota and is eager to further incorporate improved cross-cultural communication.Lastly, a successful form of verbal communication, both interpersonal and organizational was that throughout the crisis, Toyota did not fire or layoff any of their employees. David K. Hurst of the Harvard Business Review said,“Toyota, which famously treats its people as appreciating assets rather than variable costs, did not lay off any permanent employees, as many of its competitors did; neither did it bully its suppliers. Instead, the firm reduced work hours and instituted temporary pay cuts. It also seized the opportunity to work on projects aimed at improving flexibility, such as reducing the breakeven point of its plants from 80 percent capacity to nearly 70 percent-a huge challenge for a company already noted for running lean” (Hurst, 2011).This directly correlated with acceptance and action objectives of improving their brand’s image, and also appeals to the emotions of people who may have been fired or laid off when their employer was experiencing a difficult time. This was considered successful because it depicted Toyota as a family, and showed that through good times and bad, the company and its employees remain together. Furthermore, this exemplified unity and also increased the company’s credibility by showing good corporate structure.Throughout this entire recall crisis, and the events that took place as a result Toyota’s key message became evident: Although the corporation experienced a great deal of setbacks and negativity, they continuously stuck by their brand reputation of producing high quality, affordable cars. Whether through news media relations, social media, and interpersonal communication within the company and their publics, Toyota wanted everyone to understand the same message. Although it may have been communicated differently based on the target audience, the message remained the same, further proclaiming that Toyota is a world-renowned quality carmaker.EvaluationsDue to the wide array of recommended objectives, there is multiple research methods that could be used to evaluate their successes or failures. Three questions to assist in measuring the achievements of suggested objectives are: How far have we come since the initial defect in 2009? Have our sales increased or decreased after the crisis? What can we do to prevent another crisis like this? These questions will be answered in the following sections.In order to evaluate the success or failure of Toyota’s public relations campaigns, we suggest conducting several focus group interviews. This should include consumers who are and are not Toyota customers. Since this was such a well known crisis situation, it is crucial to include non-Toyota consumers in order to get a better sense of how the general public viewed the corporation. We believe this would be the most efficient way to listen to feedback and consumer insights on what they like or dislike about the brand, and how it could be improved in the future. This is a critical aspect of evaluation because consumer feedback can lead to the development of ideas directly based on customer wants, that could prove to be extremely beneficial in the future. Specific questions to be asked could be: After the recall, how likely are you to purchase a Toyota, why or why not? Do you feel that our efforts to increase our brand’s quality have been effective, why or why not? What do you like the most/least about our brand and why? Asking these types of open-ended questions lead to more detailed responses that would have actual substance and suggestions, as opposed to simple yes or no questions.Additionally, another way to evaluate perceptions of the Toyota brand would be to conduct an online survey asking the question: How likely are you to purchase a Toyota? Options for answers could include: Very likely, pretty likely, somewhat likely, or not likely at all. There could also be a space for consumers to add comments explaining whatever selection they chose. Prior to beginning the survey, consumers would be prompted to enter demographic information such as income, gender, geographical location and whether they are or are not a current Toyota customer. This online poll could be posted in email messages, social media posts, and on the company’s website. Conducting this type of survey enables Toyota to analyze percentages of the population, and to better understand how customer demographics play a part in what type of automobile they purchase.The last suggested evaluation method would be simply to analyze Toyota sales from year to year. An increase or decrease in numbers is a blatant fact that depicts whether Toyota is successful or not. According to the Business Strategy Group, “Since the recall, Toyota has regained its position as the world’s best selling car manufacturer, becoming the first to sell 10 million vehicles within a 12-month period” (Business Strategy Group, 2013). Based on this information it is evident that Toyota has indeed recovered from the 2010 recall crisis.Overall, Toyota has been successful in rebuilding their reputation since the recall crisis. Hurst stated, “Today, the story has almost disappeared from the news, and the authors contend that Toyota’s reputation and market position have largely recovered. They say that the company survived both the recession and the recall because of the strengths of its entire ecosystem, suppliers, dealers, employees, and culture. Toyota executives made a number of changes to bridge the gaps between the center and the regions, and overall, their actions seem to have reassured both employees and customers. So in the end, this is a story of how the good guys suffered a setback, but ended up better for the experience [...]” (Hurst, 2011).Despite previous flaws in their operations, Toyota has made serious efforts to return their brand and vehicles back to its level of high quality. Based on Hurst’s message, it is evident that Toyota has been successful in doing so since 2010, and that the corporation is continuously striving to avoid a similar situation in the future.ConclusionIn conclusion, Toyota has learned a lot about themselves and their consumers from this incident. Some of their biggest oversights included CEO Akio Toyoda going into hiding upon hearing about the initial safety defects, not hastily acknowledging and responding to the situation, faulty internal company structure, and lack of a firm crisis communication plan readily available. Through their different campaigns and actions, such as the “Let’s Go Places” and Toyoda making announcements in English, Toyota really marketed to their target audiences on the world’s stage. These specific actions cater directly to almost all of Toyota’s target audiences, both in America and Japan. Both actions affect both populations equally, and by making themselves appear culturally conscious and evolutionary, they have locked in their target audiences for many years to come. These established connections could be continued through future endeavors such as Toyoda visiting Toyota in America, and American CEO Lentz visiting Toyota in Japan. This would show continuous efforts made to be culturally conscious and aware as leaders of the company. As for the “Let’s Go Places” campaign, Toyota could hold a contest potentially called “Let’s See Where You Go” where consumers could post videos documenting trips they have taken in their Toyota. The person with the most interesting video could win a brand new Toyota car. Not only would this drive consumers to want to use or purchase a Toyota, but it also exemplifies that Toyotas are durable cars that are made to last wherever the road may take you.As a whole, this crisis served as a beneficial learning experience for the company. This led them to reevaluate management and leadership structure within the company, led to the emergence of Toyoda as a better, stronger leader, led to better cross-cultural communication between Toyota in Japan and America, led to new taglines and promotions, and enabled the company to realize flaws in their quality and production. Specifically, this provided Toyota with the perfect opportunity to step back and thoroughly assess their operations and procedures of both their management and car production systems.Appendix1. Toyota STAR safety system . & 4.. Works CitedAmerica's Best Employers. (2015, May). Retrieved April 12, 2016, from , Lisa. 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"How Toyota's Crisis Management Failures Added To The Billion-Dollar Settlement." Business Insider. Business Insider, Inc, 28 Dec. 2012. Web. 29 Mar. 2016. <, Yuri. "After Recall Debacle, Toyota Outlines a New Global Vision." . N.p., 09 Mar. 2011. Web. 09 Apr. 2016. <, Rachel Marie, ""How Did Toyota Stay on Top?" Revisiting Crisis Communication Discourse" (2011). Master's Theses (2009 -). Paper 72. , By Ashley. Toyota’s Cultural Crisis (n.d.): n. pag. Web. 14 Mar. 2016."Toyota - Crisis Management at Its Worst." The Wiglaf Journal Toyota Crisis Management at Its Worst Comments. N.p., n.d. Web. 14 Mar. 2016. < States. Cong. House of Representatives. Committee on Oversight. Quelch, J., Knoop, C.-I., & Johnson, R. (2011). Toyota Recalls (A): Hitting the Skids."Toyota Car Crisis: How to Handle a Product Recall." MyCustomer. N.p., 11 Apr. 2013. Web. 29 Mar. 2016. <, Mark. "Toyota to Push Safety in Upcoming Ad Blitz."?Advertising Age News RSS. AdvertisingAge, 06 Sept. 2010. 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