10 Steps Marketing Plan for TOYOTA INNOVA

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10 STEPSMarketing Plan for TOYOTA INNOVA

Jennifer Lorraine YuOctober 2013

http://www.jenniferlorraineyu@blogspot.com

Disclaimer

This 10 Steps Marketing Plan for Toyota Innova is part of the mandatory requirements of Prof. De Ungria’s marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, magazines, and public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that it is easier to share.

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Steps 1 to 5Reliability builds Confidence

1. Toyota Innova PTM are “Building Confidence for Young Parents”

2. For growing family and having new businesses.3. Can choose from Mitsubishi Adventure, Isuzu

Crosswind, Chevrolet Orlando, and Nissan Grand Livina

4. Gap is all other brands are known for having the capacity for seating a number of people and have spacious cabin.

5. Toyota’s market share is 40% and is about Php15B.

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6. Toyota Innova is an AUV that has a lot of varieties to choose from. From standard feature to luxury.

7. Comparing vehicles with engine displacement, price is 3% lower than Isuzu Crosswind (AT) and 20% higher on the rest

8. Uses ads such as media, newspaper and magazine, websites, promotions, events & experiences, and word of mouth

9. Stores are available nationwide10. Uses supply and distribution leverage

approach to win

Steps 6 to 10Simple and Stylish

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1. Toyota Innova primary target market (PTM) are “Building Confidence for Young Parents”

35-40 yrs old, social class A and B, married or single parent with kids.

Starting to have growing family and new business.

Use daily, can reach in different destination with comfort and share bonding moments with loved ones

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2. PTM needs to boost its confidence

Love of Family

Brings confidence and optimistic value

Reference: Marketing Management 14th Edition, Kotler

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2. Young Parents needs, wants, & demands

Young parents love of family strengthens and restore its self-esteem

Young parents choose Toyota Innova rather than other AUV because of the varieties to choose from, such as engine displacement, gas/diesel engine type, Automatic/Manual Transmission, and accessories

Young parents demand is to have a stylish with comfort, a good performance, and spacious cabin

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3a. Toyota Innova has various alternatives

DIRECT: Isuzu Crosswind, Mitsubishi Adventure,

Chevrolet Orlando, and Nissan Grand Livina INDIRECT:

SUV’s, vans & pick-ups, sedans & hatchbacks vehicle

VARIABLES: Age, price, comfort, promotion, discounts,

specifications, and accessories

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3b. Toyota Innova is #1 in the market for young growing family and for new growing businesses

Age vs Price Matrix Age/

Price Matrix

20-35 yrs 35-55 yrs

55 yrs up

Low range

Middle range

High range

INNOVA

CROSSWIND

ORLANDO

GRAND LIVINA

ADVENTURE

Reference: Top Gear Magazine

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Toyota Innova’s market positioning is to have different varieties to choose from..

Functional Benefit vs Variant Matrix

Functional BenefitChevrolet Orlando

Isuzu Crosswind

Mitsubishi Adventure

Nissan Grand Livina

Toyota Innova

Engine Displacement 1.8 2.5 2.5 1.8 2.0/2.5

Engine Fuel Type GAS DIESEL DIESEL GASGAS/

DIESEL

Transmission Type AT MT/AT MT AT MT/AT

Cruise Control YES NO NO YES NO

Seating Capacity 7 7 5-9 7 8

Captain Chair NO NO NO NO YES

Leatherette Upholstery

NO NO NO YES YES

Spacious Cabin YES YES YES YES YES

Reference: Top Gear Magazine

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4. Toyota Innova’s marketing opportunity concentrates on the reliability

Toyota Innova was the only AUV that has varieties to choose from. Depending on… The comfort The budget The purpose

Other AUV’s try to differ from its interior and exterior appearance but the purpose are almost the same.

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Brand Positioning of Toyota and Toyota Innova

Toyota Innova: “ All you Desire. ”

Source: http://toyota.com.ph/

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5a. Based from the survey, Toyota remains unbeatable with 41% market share

Chamber of Auto Manufacturers in the Philippines Inc. (Campi) and Truck Manufacturers Association (TMA) members, as well as other manufacturers, report that their sales to either of the two groups, sold a combined 41,702 units in the three-month period, beaching the 40,000-mark in the first quarter for the first time. Leading the performers for the first quarter of 2013:

Toyota Motors Philippines Corp. with a 41% market share Mitsubishi Motors Philippines with 24% Honda Cars Philippines followed with 9.51% Isuzu Philippines Corp. 6.56% Ford Philippines, 6.44%

Sales of Asian utility vehicles (AUV) and light trucks lagged behind the rest of the industry, growing just 3.5 percent and 2.5 percent, respectively.

http://business.inquirer.net/119303/vehicle-sales-

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5b. Toyota claims 40% market share in the Philippines

http://motioncars.inquirer.net/9319/ph-on-course-to-breach-200000-unit-mark

As of 1st quarter of 2013

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5c. Consumer’s choice: Toyota

http://www.topgear.com.ph/news/industry-news/philippine-car-sales-figures-for-june-2013

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5.Concluded that vehicles market is about Php15 billion

a. Competitor Data= Php17.50 Billion

** Based from 41,702 units x 46.51% x 900,000** Total competitors (Mitsubishi, Isuzu, Chevrolet, & Nissan)

b. Company Data= Php12.50 Billion** Based from 34,713 units x 40% x 900,000

c. Customer Data = Php25 Billion**Based from approx. 27,771 units [(34,714/5)x 4 months] x 900,000

As of 1st quarter of 2013

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6a.Toyota Innova, like other AUVs, has sophisticated design

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6a.Toyota Innova’s Direct and Indirect competitors

DIRECT COMPETITORS

INDIRECT COMPETITORS

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6b. What makes Toyota Innova different

Only Toyota Innova has a variety of choices to choose from. Depending on the capability and preference of the consumers. From standard style to luxurious style

Regular chair to captain chair Standard upholstery to leatherette upholstery

From 2.0 to 2.5 Engine Displacement From Automatic to Manual Transmission And from Gas to Diesel Engine Type

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6b. Toyota Innova offers 12 different variants

2.0 J (MT) Gas 2.0 E (MT) Gas 2.0 E (AT) Gas 2.0 G (MT) Gas 2.0 G (AT) Gas 2.0 V (AT) Gas

2.5 J (MT) Diesel 2.5 E (MT) Diesel 2.5 E (AT) Diesel 2.5 G (MT) Diesel 2.5 G (AT) Diesel 2.5 V (AT) Diesel

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7. Vehicle prices vary from

engine specification Prices based from Top Gear Ph. Magazine, September2013 issue

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7. Vehicle prices vary from engine specifications. But assuming, by comparing to its engine displacement…

CHEVROLET

ORLANDO

ISUZUCROSSWIN

D

MITSUBISHI

ADVENTURE

NISSANGRANDLIVINA

TOYOTAINNOVA

AT 1.8 LT / 1.8 HW STR LUXURY 1,238,888 928,000

AT 1.8 HW STR ELEGANCE 1,008,000

MT2.0 J 829,000

MT2.0 E 934,000

AT 2.0 E 999,000

MT2.0 G 1,048,000

AT 2.0 G 1,113,000

AT 2.0 V 1,173,000

MT2.5 TX 678,000

MT2.5 J / 2.5 GX / 2.5 XS 750,000 718,000 884,000

MT2.5 E / 2.5 GLX / 2.5 XL 794,000 853,000 989,000

AT 2.5 E 1,054,000

MT2.5 G / 2.5 GLS SPORT / 2.5 XT 883,000 913,000 1,103,000

MT2.5 SUPER SPORT / 2.5

SPORTIVO 1,140,000 963,000

AT 2.5 G / 2.5 SPORTIVO 1,205,000 1,168,000

AT 2.5 V 1,228,000

Prices based from Top Gear Ph. Magazine, September2013 issue

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7. Price conclusion in %: Toyota Innova is 3% lower than Isuzu Sportivo (AT) and 20% higher on the rest

VARIANTSCHEVROLE

TORLANDO

ISUZUCROSSWIN

D

MITSUBISHI

ADVENTURE

NISSAN

GRANDLIVINA

TOYOTAINNOVA

MT 2.5 J / 2.5 GX / 2.5 XS   85% 81%   100%

MT 2.5 E / 2.5 GLX / 2.5 XL   80% 86%   100%

MT 2.5 G / 2.5 GLS SPORT / 2.5 XT

  80% 83%   100%

AT 2.5 G / 2.5 SPORTIVO   103%     100%

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8a. Toyota Innova uses a variety of ads, discount promos, events & experiences, and word of mouth

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8a. Magazine features of Toyota Innova

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8a. Toyota Innova advertising its 25th year “A symbol of success and of moving forward together.”

Reference: http://toyota.com.ph/

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8a.Toyota’s “Pay Low” Promo

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8a. Events & Experiences of driving Toyota Innova

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8a. Spreading the word of Toyota Innova

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8b.Mitsubishi Adventure for OFW and Public Utility Vehicle?

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8b. Isuzu Crosswind empowering people the versatility ride and adopting the lifestyle of the people?

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8b. Chevrolet Orlando emphasizes on the seat comfort and flexibility of cargo space

Theater-style seating arrangements

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8b. Nissan Grand Livina focuses on the luxury and comfort

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9.Toyota has dealers nationwide Dealers from different parts of Philippines

Metro Manila 16 dealership stores

Luzon 10 dealership stores

Visayas 6 dealership stores

Mindanao 3 dealership stores

Order/inquire thru phone, email, or personal Can pick-up or deliver the vehicle Payment can be on cash, installment, or loan

(thru banks)

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10. Toyota is No.1 in supply and

distribution leverage

Toyota’s strategy is being available in different places that it is accessible for the consumers.

It has many variants to choose from.

There are no problems in maintenance and repair.

And prices are reasonable.

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SUMMARY

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Steps 1 to 5Reliability builds Confidence

1. Toyota Innova PTM are “Building Confidence for Young Parents”

2. For growing family and having new businesses.3. Can choose from Mitsubishi Adventure, Isuzu

Crosswind, Chevrolet Orlando, and Nissan Grand Livina

4. Gap is all other brands are known for having the capacity for seating a number of people and have spacious cabin.

5. Toyota’s market share is 40% and is about Php15B.

http://www.jenniferlorraineyu@blogspot.com

6. Toyota Innova is an AUV that has a lot of varieties to choose from. From standard feature to luxury.

7. Comparing vehicles with engine displacement, price is 3% lower than Isuzu Crosswind (AT) and 20% higher on the rest

8. Uses ads such as media, newspaper and magazine, websites, promotions, events & experiences, and word of mouth

9. Stores are available nationwide10. Uses supply and distribution leverage

approach to win

Steps 6 to 10Simple and Stylish

http://www.jenniferlorraineyu@blogspot.com

10 STEPSMarketing Plan for TOYOTA INNOVA

Jennifer Lorraine YuOctober 2013