Transcript Toyota Tacoma Hybrid

TOYOTA
TACOMA HYBRID
Jeff Dittman
Christy Huang
Katie Ivester
David Ugas
OUTLINE
Introduction
Eco-Green Business Model Logic
Target Market Segmentation/Positioning Strategy
Market Direction Strategy
Marketing Mix
Performance Measurement Implementation and
Control
TOYOTA HYBRID HISTORY
Eco/Green Business Model Logic
SWOT Analysis
Purpose of SWOT Analysis:
“To understand key strengths that can be exploited
through marketing and defend against
vulnerabilities that competitors might detect and
use against the organization” Wood
Tacoma hybrid analysis focused on Strengths and
Opportunities (S-O)
Strengths
Commercial success of hybrid technology (Prius)
Ability to leverage our position as the world’s #1
automaker
Technical expertise and manufacturing process
excellence
Ability to get new products to market quickly
Existing U.S. Manufacturing capabilities and
access to markets
Opportunities
Limited existence of hybrid pickups currently
on the market
Innovation in green technology
Social-cultural demand for green vehicles
Public-private alliance to increase incentives to
purchase hybrid vehicles
Capitalize on financial weakness of
competitors
TARGET MARKET
Income
Average Income
Age
25-40 Years Old
Education
Some Education
SEGMENTATION CHART
Total Market
High Income
16-24
College Graduate +
Average Income
25-40
Some College
Target Market
Low Income
40+
No College -
Usage Growth Rates of Select Environmentally-Friendly Products
(% change in usage for each product by consumer segment, 2004-2005)
Gen Pop LOHAS
NonLOHAS
Hybrid Vehicles
+267%
+57%
+450%
Compact Fluorescent Light Bulbs
+22%
+38%
+16%
Energy Efficient Windows
+18%
+35%
+10%
Solar Panels
+17%
+44%
+13%
Organic Foods/Beverages
+8%
+3%
+12%
Natural Household Cleaning
Products
+13%
+29%
+5%
DIFFERENTIATED
MARKETING
Toyota will target to many
different factors such as:
Reliable Product
Economical Product
Reasonable Price
Appealing Image
Marketing Direction Objectives
Marketing:
Market Shared Increase 10%
Unit Sales (100 year)
Customer Satisfaction (80%)
Customer Retention (25%)
Financial:
Sales Revenue (10%)
Break Even Point (5 years)
Societal:
Reduce Gasoline Consumption (250 gallons / yr / car)
Community Involvement (Educational Programs)
Marketing Direction Objectives
MISSION STATEMENT
Our goal is to be a "good corporate citizen,"
constantly winning the trust and respect of the
international community. Continuing in the 21st
century, we aim for stable long-term growth,
while striving for harmony with people,
society and the environment
Marketing Direction Objectives (Cont.)
Employees Involvement
Surveys
Customer Care
Community Involvement
Educational Programs
Resources Allocation
Marketing Direction Objectives
http://www.toyotawhynot.com/#/home
Marketing Direction Objectives
Current Models
Make
Model
Tax Credit
Ford
Escape Hybrid (2wd)
$3,000*
Ford
Fusion Hybrid
$3,400*
Mazda
Tribute Hybrid (2wd)
$3,000*
Mercury
Mariner Hybrid (2wd)
$3,000
Mercury
Milan Hybrid
$3,400
Toyota
Camry Hybrid
$2,600*
Toyota
Highlander Hybrid
$2,600*
Toyota
Prius
$3,150*
Credits for Toyota and Honda hybrids no longer qualify at all for tax credits.
Ford hybrids are still eligible, but the credits will be cut in half from amounts listed
above starting April 1, 2009. In October 2009, the credits will be cut in half again,
and will completely phase out on April 1, 2010.
TACOMA HYBRID CONCEPT
Basic – transporting people
where they need to go
Credit
Delivery
Expected – Toyota brand,
Packaging
Quality
After
Sales
Service
Brand
Name
The
hybrid technology, pickup,
recycled parts
Essential
Benefit
Styling
Features
Warranty
Intangible Associations
Augmented – improved air
quality, just-in-time delivery,
after purchase service
Potential – vehicle
dashboard that shows how much
CO2 emissions reduced
CHANNEL STRATEGY
Channel Strategy - All the
decisions involved in getting the
right product to the target market.
Channel Member:
Toyota Manufacturing Plant
Toyota Motor Sales USA
Three Manufacturing Plants:
Toyota Motor Manufacturing (TMM) San Antonio
(Texas); TMM Tupelo (Mississippi); TMM
Georgetown (Kentucky).
One Distribution Center:
Toyota Motor Sales, USA
Dealers
Consumer
VALUE CHAIN
Save energy
for
Possible
campaigns:
Environmentally
friendly product
base on green
procurement.
Reduce Waste &
Improve Efficiency
at our car
manufacturing
plants
Supplier
Producer
Inbound
Value Added
storing excess
Manufacturing Location
inventory;
Eco-Driving
Wastewater treatment
Program
Use least impact
Conserve energy
transportation
forBuild
delivery
solar panel
Channel
Outbound
Customer
PRODUCT LIFE CYCLE
(1) Introduction Stage :
Heavy promotion & Education
(2) Growth Stage:
Continuing promotion & Education
(3) Maturity Stage:
Use different pricing strategy to retain
customers
(4) Decline Stage:
Discontinue unprofitable locations
Tacoma Hybrid Market and Product Sales Forecast
Bakersfield Test Market
500
100%
400
73%
75%
61%
300
293
55%
266
50%
50%
242
220
200
214
200
177
146
25%
121
100
100
0
0%
2010
2011
2012
2013
Year
Tacoma Market Share (%)
Market Sales Projection
Tacoma Sales
2014
% Market Share
Number of Trucks Sold
67%
Tacoma Hybrid - Marketing Dashboard for Annual Control
Bakersfield Test Market
Corporate Objectives
Marketing Metrics
Target
Increase market share
% Increase in Market Share/Yr
0
Increase unit sales
# of Unit Sales (Units/Yr)
100
Customer Satisfaction
% of Customers Satisfied
80%
Customer Retention
% Repeat Buyers
25%
Increase Sales Revenue
% Increase in Revenue ($/Yr)
10%
Break Even Point
NPV Project =0 (Yrs)
Societal
Reduce gasoline
consumption
Gals Gas Saved / Yr / Vehicle
Community Involvement
Educational Programs
Marketing
Financial
Monthly Performance Metrics (% of target)
5
250
Yes/No
< 80%
80-100%
> 100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
THE END!!