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Marketing Plan for Toyota - Research Paper Example

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This paper "Marketing Plan for Toyota" focuses on the fact that Toyota Company is the worldwide leader in automobile manufacturing, assembly, and supply. One of the main reasons for the company’s outstanding performance is a very resourceful management approach that it uses. …
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Marketing Plan for Toyota
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?Running Head: Marketing Plan for Toyota Marketing Plan for Toyota [Institute’s Table of Contents Corporate Objectives 3 Marketing Audit 4 Marketing Mix 4 Product 5 Price 5 Place 6 Promotion 6 STP Analysis 7 Segmentation 7 Targeting 7 Positioning 8 SWOT Analysis 9 Strengths 9 Weaknesses 10 Opportunities 10 Threats 11 Marketing Objectives and Strategies 11 Objectives 11 Strategies 12 Marketing Programmes 13 Budget 14 Implementation 14 Control 15 References 16 MARKETING PLAN FOR TOYOTA Corporate Objectives Toyota Company is the worldwide leader in the automobile manufacturing, assembly and supply. One of the main reasons of company’s outstanding performance is a very resourceful management approach that it uses. There are various other prominent aspects that have made the company attain the position of market leader. The differentiation strategy of Toyota Motors has made it possible for the business to get the benefit of almost monopolistic presence, especially within developing countries. Alternatively, the market structure can be defined as oligopoly in view of the fact that that there are other key players within the market who are “peer competitors” (James, 2010, p. 211). The key aspects of existing corporate objectives of Toyota Motors, with respect to its marketing plan are (1) Mission Statement, (2) Targets of the Business, and (3) Sustainable Competitive Advantage. The Toyota Motor’s mission statement is termed as a “Global Vision” (Liker & Meier, 2011, p. 111) on the company’s website. The company aims to lead the way to the potential of mobility, inspiring lives all over the world with the most secure as well as most responsible ways commuting. Through its dedication towards excellence, continuous improvement and admiration for the planet, the company plans to go beyond expectations and “be rewarded with a smile” (Liker & Meier, 2011, p. 123). The company aims to achieve its challenging objectives by utilizing the flair and enthusiasm of individuals, who think there is always an enhanced approach. The Innovative Multi-purpose Vehicle (IMV) plan was the huge step for Toyota Motors in locally manufacturing a low-priced product with a strong competitive gain. This “customer first and not product first” (Kato & Smalley, 2011, p. 51) approach turned out to be immensely popular as consumers no longer considered a locally made Toyota as substandard. Customer confidence can only be gained by a reliable, elegant product, and Toyota recognizes that promoting better-quality human resources is crucial to ascertain consistent quality. Toyota’s mission statement shows that company’s objectives incorporate acquiring clients through provisions of high-valued products as well as services, and the most rewarding experience of ownership. “This mission is topped only by the company’s vision of being the most successful and respected car company in around the globe” (Lusch et al, 2006, p. 267). With these principles in mind, the marketing plan of the Toyota reveals an evaluated approach of company’s quantitative as well as qualitative objectives, to guarantee alliance with the existing mission and success in accomplishing. As an international business, Toyota sets its objectives based on international sales. The existing corporate objective involves international sales of the Toyota to reach 25 billion. For an automobile manufacturer that previously sells just over 750,000 units in United States, the corporate objectives also includes reinventing the image of Toyota and target a redefined market segment with the intention of creating the additional sales required, by demonstrating the value of Toyota Motors and enhancing the link of consumers with the Toyota family. Marketing Audit Marketing Mix Marketing mix is a vital part of the marketing policies of the Toyota Motors. With the execution of the varied components of the marketing mix, the business has made very successful marketing strategies as well as methods. With the marketing approach, planned on the basis of the components of the marketing mix, the business is developing very positive corporate image and productivity among entire automobile market at this time. This is also anticipated that if the company modifies its marketing strategies and approaches in accordance with the requirements of the clientele linked to the following four elements of the marketing mix, it will be capable of stressing the similar level of productivity in the future. Product Product mix is the main component of the marketing strategy of the business. Toyota is famous for its quality products. It has an extremely immense product range, for instance, “cars, trucks, vans, sport automobiles and hybrid products. In cars, the most famous models of the company are Corolla, Prius, Matrix, etc. The trucks of the company include the Tacoma and Tundra. In hybrid products, Prius and Camry Hybrid are the most popular products” (Liker & Center for Quality People & Organization, 2007, p. 91). The clientele of the company is pleased with the highly developed as well as most effective quality products and this has provided immense success to the business. The product determinations of the business are an integrated element of the marketing plan of the company. The marketing department mainly focuses on the market segmentation, in accordance with the requirements of the clients with the intention of meeting the necessities of the specific market segments in a successful manner. In its marketing plan the company as well considers the brand image of its product as a fundamental feature. With its pioneering branded products, the company would like to carry out its approach of understanding the complete automobile market. Price Pricing is the single most decisive component of the marketing policy of Toyota Motors. The business has a very renowned pricing strategy quite opposite to other companies in the same industry. The pricing of the products of Toyota is within the means of the customers. The pricing strategy of the business is determined by taking into consideration the distinctive geographic segments in accordance with the financial circumstances of the clients (Ono, 2005, p. 104). In its marketing plan, the company is not increasing its prices even following the huge increase in rivalry within the automobile industry. As a component of its marketing plan, the company mainly focuses on the customer contentment with economical as well as quality based products. Place For the timely delivery of the vehicles, the business has spread out its stores in every approachable region of the customers. The supply chain of the business is also very effective. The dealers of Toyota deliver the vehicles to the precise market places in precise time frame. For the success of its marketing plan, the company focuses on the improved sales and for which it implements the policy of coalitions and Joint Ventures with the well established markets. The marketing mix, particularly the place mix strikes the growth policy of the business (Manna et al, 2011, p. 66). Because of this basis, the company is suggesting to make continuous alterations within its marketing strategies in accordance with the altering situation of industry. Promotion The promotion approach of Toyota is very important. By means of the web portal, the company provides very precise as well as timely information regarding its offerings. The company synchronizes marketing campaigns and arranges demos of its vehicles as a part of the advertising approach. In the execution of the promotion mix within its marketing plan, the company provides individual advantages to its clients, for instance, very low rate of interest on instalments and concessions. In its marketing plan, the company as well focuses on the market reviews for the endorsement of its products. STP Analysis Segmentation Toyota controls various geographical regions by concentrating on geographical requirements. The company segments its market on the basis of “region, density of population and climate” (Amasaka, 2002, p. 140). On the world region it segments the market for Japan, North America, Europe, Asia, others. Toyota also started the IMV plan to optimize universal manufacturing and supply arrangements for pickup trucks and multi-use vehicles, and to please market demand in over 140 nations around the globe. Demographic factors are the most popular foundation of the segmentation for Toyota. Toyota segments its products in accordance with age, income, size of the family, profession and generations. Targeting About a decade ago, the key target divisions of Toyota Corolla were Upper Class along with Upper Middle Class. However, with beginning of customer finance as well as property boom, the target segments transformed. As the upper class shifted towards more notable vehicles, Toyota Corolla targeted the Lower Middle Class. This is a much larger segment in comparison with Upper class and therefore causes a great boost in sales of the company. It targeted the income segment which could pay for an economically priced car in the past and convinced them to acquire a Toyota Corolla by taking help of financing from a bank. Each of Toyota’s products is intended to target a particular market segment. The design standards range from “top speed, capacity and exterior appearance” (Liao et al, 2012, p. 2649) (for instance, colour and shape). There are high-speed, small, two-seat model vehicles for the comparatively younger and single individuals to the big five-seat models for the family unit. Demographically, the company as well target conditions on the level tarmac road as well as the bumpy and rocky off road land. Toyota Company is giving its rivals an excessively difficult time. Although it has been through challenges such as the latest recalls, it is still outstanding in market leadership spot (Miroshnik, 2012, p. 681). If the existing remarkable outcomes as well as global positioning of the business are anything to go by, then this is a spot Toyota is not expected to lose soon. Positioning Toyota works tactically to create a definite position on the mind of its customer. The company’s key slogan is ‘going ahead’ and ‘search for excellence’. With these slogans Toyota attempts to develop its product up the quality of the consumer’s preference. Toyota positions its fuel efficient hybrid car- Prius as technologically advanced answer to the energy deficiency. “How far will you go to save the planet? It asks to the consumers to make a great position on their mind and to think about the environment as Toyota believes their product is eco-friendly” (Monden, 2012, p. 102). One of the stronger areas of Toyota is that it manufactures and supplies better car at reasonable price as compared to the other car manufacturers in the market. On this basis they manufacture reasonably priced cars for the individuals of higher middle as well as middle class, making a better positioning on their mind. Toyota Company has been manufacturing vehicles and significant products that are not highly-priced and are readily accessible. This has been a major aspect that has facilitated the Company to have a main cut within the market, and it is planning to have the majority of the market by the end of 2013, as it has implemented a number of strategies to enable it to reach the set target. SWOT Analysis Strengths Pioneering traditions: Toyota is among the most inventive auto companies and has a powerful culture that is determined towards constant improvement. The company was the first to mass-produce and sell hybrid cars. Brand standing: Toyota’s brand is the most appreciated automotive brand around the globe. The business is famous for its environmentally friendly, secure and durable cars that are sold in over 170 countries. Market leader in manufacturing and sales: Toyota was the first company to initiate the concept of lean manufacturing as well as total quality management practices within manufacturing procedure. For some time, Toyota was the single specialist of these practices and had the smallest possible manufacturing and production costs universally. Even though a number of producers were capable of imitating Toyota’s lean manufacturing method, the company is still among the most lucrative producers in the world (Flaccomio et al, 2011, p. 82). Sturdy brand portfolio: At the moment, Toyota sells around seventy different models of cars under its namesake brand. This does not merely boost brands knowledge but as well satisfies almost all customer groups’ requirements. Toyota’s flagship models are Corolla and Prius. Leader in green cars production: Toyota Motors knows that environmental friendly vehicles are the requirement these days. Customers are more discriminating with regard to carbon discharge and fuel-efficiency of the cars they purchase and Toyota’s early shift towards selling hybrid as well as efficient cars is the strong point a small number of rivals can go with. Weaknesses Major recalls: Toyota had some major vehicle recalls during the couple of years. The company recalled nine million vehicles during the year 2010-2011 and around 8 million cars million cars during the year 2012. These recalls do not just damage the business economically but drastically harms firm’s trade name. Weak presence within the emerging markets: Toyota’s major markets are Japan, US and Europe, whereas the emerging nations make a mere percentage of Toyota’s entire sales. As a result of poor presence within the largest automobile market that is China, Toyota will find it difficult to go up against GM that has vast market share there. Opportunities Green vehicles approach: Today, customers are more conscious of the harmful effects, such as air pollution, caused by cars. Huge amounts of carbon dioxide discharge increases greenhouse effect and harmfully affects the life on earth. As a result, customers are more likely to purchase innovative hybrid and electric cars that discharge lesser amount of carbon dioxide. Rise in the price of Fuel: Rising prices of fuel expose huge markets for Toyota’s hybrid cars as customers move towards efficient vehicles. Transformation in consumer needs: By bringing new car models in the market, Toyota could satisfy changing consumers’ needs and also get in touch with broader customer group. Expansion via acquisitions: Toyota has productively acquired other car manufacturers in the past and plans to carry on doing so to grow, achieve new expertise, assets and access to fresh markets. Threats Latest emission benchmarks: Latest emission benchmarks launched by the government would involve additional outlays into developing cleaner engines. Additional outlays indicate less revenue for Toyota. Increase in the price of Raw Material: Increasing raw material prices are mainly important to automobiles producers. Increase in prices indicates increase in costs as well as fewer profits for Toyota as the raw materials are the major components in manufacturing process. Marketing Objectives and Strategies Objectives Toyota’s massive size as well as capacity is a huge lead in meeting industry expansion. The amount of customers reliant on cars is always rising, therefore forming a larger market for Toyota and needing more of its products. The apparent significance of having a car because of increased travelling requires in today’s mainly corporate world is continually increasing too. Toyota’s great size will facilitate the company to effectively meet the requirements of this growing chunk of clients. The company keeps making high-quality products and does not compromise on this (Kadirov & Varey, 2011, p. 162). Toyota is involved in obtaining lesser platforms to be utilized in the assembly of its various models. This is a cost reduction step, and through this, the company planned to compress its platforms to half. This is particularly significant since its major competitors; General Motors and Ford have made outstanding developments within their manufacturing procedure. Toyota is as well thinking twice regarding its “bloated assembly points” (James, 2010, p. 231). It is taking into account the best techniques to decrease them without obstructing its competence. Regardless of a few rough years of recalls some of Toyota’s products; the company is heading in the right direction with fixing the damage. Therefore, it focuses its efforts on the marketing mix that will not just fix the extensive damage due to those recalls, but reformulates the Corolla, finds a new target market, develops links with the customer, and stays measureable. Rather than concentrating exclusively on the usual marketing mix, the company plans to use the unconventional marketing mix, with main focus on customer, communication, price, and ease. The company is aware of its consumers’ needs. Without simply adjusting the products’ features, it can deal with qualitative objectives, for instance, repair of business standing and reinvention of image, via marketing the vehicles’ valuable aspects and innovative features. Finally, the marketing objective concentrates on improving the sale. Strategies The marketing campaign uses a positioning approach that considers rivals, and presents prospects that create brand knowledge in the target market by means of personal optimization. This positioning strategy goes well with the target market to boost the maximum reach - that is, determining the reliable marketing communication method and actually sticking to the intended market by carrying out effective campaign. To increase the reach of marketing efforts, the company focuses on brand building prospects in frequency - the higher the rate of recurrence of the tactics, the more responsive customers become towards the innovative features, and eventually, the brand equity becomes stronger (Amasaka, 2011, p. 200). Nonetheless, developing brand equity depends on optimized positioning strategies or by highlighting specific factors of the product by demonstrating their advantage to the target audience. Marketing Programmes In an attempt to maintain the marketing strategy, the company introduces a channel management approach - or a method that develops a proper program for selling as well as servicing the customers within each segment. While developing the strategy for Toyota, following aspects were taken into consideration: (1) business objectives and aims, (2) developing policies that improve and support the marketing programs (3) advantages of the product pertinent to the target clientele, and (4) the sales and marketing plans that support the channel (Boyd & Brown, 2012, p. 662). Product Strategy: The Company is thought to be going ahead with the approach of mass production of which it has enabled it to sell generally within the international market. It has as well incorporated the approach of hybrid product, where it can double the total production for the increasing demands within the market. Pricing Strategy: The standing of the Company has been developed by manufacturing premium vehicles that can be acquired at an economical rate. The Company has as well been utilizing careful pricing strategies via price differentiation so that it stays different from other automobile manufacturers. Placement Strategy: Being a universal manufacturer as well as seller of Toyota automobiles and their components, Toyota Company has placed itself on top of the industry. During the next two years, it has planned to achieve around forty percent of the market share, and this will make it the best and top seller of automobile products. Promotional Strategy: The Company is keen to employ a pricing system that will give it an economical gain over its major rival companies. This is a system that it is using to market itself so that it can acquire market share that will see it better in attaining the highest level within the market. Budget Having carried out extensive research on the forms of media which is necessary, the site and the timing, the estimated budget would somewhere between nine million to ten million USD. The campaign’s marketing calendar competently classifies the precise outflows as well as returns for the particular month, according to the course of media usage within their relevant regions, during particular seasons. TV/Radio Print Media Social Media Events/Trade Shows Others 1st Month $ 200,000 $ 100,000 $ 125,000 $ 35,000 $ 60,000 2nd Month - $ 25,000 - - - 3rd Month - $ 25,000 - - $ 5000 4th Month - $ 45,000 $ 100,000 - - 5th Month $ 300,000 $ 45,000 - - $ 5000 6th Month - $ 90,000 - - - 7th Month - $ 35,000 $ 85,000 - - 8th Month $ 150,000 - - - - 9th Month - $ 20,000 - - $ 5,000 10th Month - - $ 60,000 - - 11th Month $ 350,000 $ 20,000 - - $ 5,000 Table 1: Projected Budget Implementation Toyota’s main focus will be in “reaching the new markets of China and Europe” (Jones, 2012, p. 239). The company will also focus on the rivalry from other manufacturers such as Ford and General Motors. A clear lead the company has is the extensively differentiated product range. Starting innovative manufacturing units within these new markets as well as stating new franchises assists the company in easily penetrating untapped markets. Human resource is among the most significant aspects of this plan. The company should always check they have highly motivated workforce as this is “directly proportional to good production both in the qualitative and quantitative aspects” (Jones, 2012, p. 246). Toyota can do this by introducing systems for rewarding their workforce like facilitating them in having their own cars at subsidized rates. The company should as well ensure the workers are the best with respect to technical awareness. Control The monitoring and evaluation team will be set to keep an eye on the advancement of the company in realizing the strategic objectives. The interim objectives will be clearly observed where goals are missed for they are the keys to accomplishing the long term objectives. At present, the Company has made an obvious step in guaranteeing that hybrid vehicles are being manufactured and sold to protect and maintain a healthy environment, and so far the market has started getting better with respect to general response of these brands of vehicles. Another part that should be taken into account here is the speed of the roll-out program of pricing system launched. Presently, it has taken the market by shock as the majority of Toyota products are found to be customer friendly (Amasaka, 2012, p. 541). The Company has been capable of coming up with a differentiation plan for its products and this has facilitated it to have an enormous market share. It is likely to progress and achieve the goal within a year and this will be verified by the pace of development along with the total number of market reached. References Amasaka, K. 2002. ‘New JIT: A new management technology principle at Toyota’. International Journal of Production Economics, 80(2), 135-144. Amasaka, K. 2011. ‘The Validity Of Advanced TMS: A Strategic Development Marketing System-Toyota’s Scientific Customer Creative Model Utilizing New JIT’. International Business & Economics Research Journal (IBER), 6(8), 192-221. Amasaka, K. 2012. ‘Changes in marketing process management employing TMS: Establishment of Toyota sales marketing system’. China-USA Business Review, 10(6), 539-550. Boyd, D. E., and Brown, B. P. 2012. ‘Marketing control rights and their distribution within technology licensing agreements: a real options perspective’. Journal of the Academy of Marketing Science, 40(5), 659-672. Flaccomio, K. A., Heyer, J., and Feuss, W. J. 2011. Toyota Motor Corporation in Business. Oxford: OUP. James, M. 2010. The Toyota Product Development System: Integrating People, Process, and Technology. New York: Productivity Press. Jones, V. B. 2012. Traveling the Road to Redemption: Toyota Motor Corporation's Rhetoric of Atonement as Response to the 2010 Recall Crisis. New York: Productivity Press. Kadirov, D., and Varey, R. J. 2011. ‘Symbolism in Marketing Systems’. Journal of Macromarketing, 31(2), 160-171. Kato, I. and Smalley, A. 2011. Toyota Kaizen Methods: Six Steps to Improvement. New York: Productivity Press. Liao, C. Tsai, C., Huang, H. and Chung, N. T. 2012. ‘A study of building the crisis prevention model for the innovation development of green marketing: A case of the automotive industry’. African Journal of Business Management, 6(7), 2644-2658. Liker, J. and Center for Quality People & Organization. 2007. Toyota Culture: The Heart and Soul of the Toyota Way. London: McGraw-Hill. Liker, J. and Meier, D. (2011). The Toyota Way Fieldbook. 3rd Edition. McGraw-Hill. Lusch, R. F., Vargo, S. L., and Malter, A. J. 2006. ‘Taking a leadership role in global marketing management’. Organizational Dynamics, 35(3), 264-278. Manna, D. R., Marco, G., Khalil, B. L., and Meier, S. 2011. ‘Sustainable Markets: Case Study of Toyota Motor Sales, USA, Inc’. Journal of Business Case Studies (JBCS), 7(3), 63-72. Miroshnik, V. 2012. ‘Company citizenship creation in the developing countries in the era of globalization: Evidence from the Toyota Motor Company’. Journal of Management Development, 31(7), 672-690. Monden, Y. 2012. Toyota production system: an integrated approach to just-in-time. New York: Productivity Press. Ono, T. 2005. Toyota production system: beyond large-scale production. 5th Edition. New York: Productivity Press. Read More
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