10 step marketing plan v61 18

http://lynietumabini1.blogspot.com

10 STEP Marketing Plan for TOYOTA INNOVA

Lynie J. TumabiniOctober 2013


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

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, 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 there is easier sharing among students from different marketing classes.

Disclaimer


1. Toyota Innova PTM are families and everyone2. Who want an all purpose vehicle with excellent

performance and quality, safe drive, fuel & cost efficient, comfortable, spacious, best value for money

3. Can choose Mitsubishi Adventure, Isuzu Crosswind, Nissan Grand Livina, Mitsubishi Fuzion

4. Gap is all other brands of the same category are more known for a typical family AUV focus mainly on fuel efficiency , affordable price, and durability.

5. Half year of 2013, the market size is 102,571 registered vehicles in the Phils., Toyota Innova sold 7,331 units, ranked no. 2 and niched 7.1% market share

http://bestsellingcarsblog.com/2013/09/05/philippines-6-months-2013-now-with-top-140-models-ranking/

Steps 1 to 5

Everyone loves the Innova


6. The New Innova is a MPV with smart engine power in 4 versions J,E,G, & V, available in 22 variants, luxurious interior & spacious cabin

7. Price ranges from P 832k – P 1.246M8. Uses TV & print ads, sales promotions, events 9. Has 32 dealers nationwide 10. Uses differentiation approach, new-market

segment & proactive marketing strategies

Steps 6 to 10

Innova is best value for money


1. The New Innova primary target market (PTM)*are families & everyone

30 yrs. old & above, male or female, S/M/HF/, managerial level, social class A,B,& C

Working, driving with families as bonding moments during weekends, driving kids to school, gimmick with friends, meeting with clients, shopping at malls.

Buying cars once every 3 or 4 years, car loan, uses car everyday at work, or school and other places.

*Exclusion of a certain demographic group in PTM does not mean they do not buy the product. Some do buy, but majority don’t which is why limited marketing resources are best focused on PTM


Innova’s PTM needs…….

6Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

I need a valuable MPV to keep me on the go

To live life with the ones I love


2. PTM’s needs, wants & demands Needs: Car buyers need to belong (social), to be loved, to

gain self- esteem and to achieve self actualization.

Wants: Car buyers choose Toyota Innova because it’s a multi purpose vehicle for family, stylish, luxurious & spacious interior, powerful engine, prestigious, reliable and versatile brand, availability of model and parts.

Demands: Car buyers expect to have safe drive, fuel efficiency, riding comfort with the style, performance and security of a SUV , best value for money.


3a. Toyota Innova has many formidable competitors Direct: Isuzu Crosswind and Mitsubishi Adventure Indirect: SUVs, compact, sedan, other non

MPV/AUV. Variables: Age, price, brand, style & looks,

comfort & convenience, durability, fuel efficiency, variant, advertising, promotional scheme, multi-purpose, versatility, availability of parts, resale value, after sale service, credit facility & payments flexibility.


Innova is the # 1 choice in the wider area of market segment

Price/ Age Matrix

0-13 yrs

16-24 yrs 25-49 yrs 50yrs up

High price

Low Price

Vios

Innova

Montero Sports

Crosswind

Price vs. Age Matrix as of 2013

MirageAdventure


Innova positions itself as a differentiator in the market

Benefit Positioning vs. Brand Matrix as of 2013

Toyota Misubishi Isuzu Functional Innova Adventure Crosswind

Benefits 2.5E D4-D MT 2.5 GLS Sport-MT XTI -MT WARRANTY

POWERTRAIN

CHASSIS

SUSPENSION

AMENITIES

SAFETY

FUEL EFFICIENCY

COMFORT

STYLE

RELIABILITY

VERSATILITY


Innova has to add amenities and safety features for AT-GAS models

Benefit Positioning vs. Brand Matrix as of 2013

Toyota Nissan MitsubishiFunctional Innova Grand Livina XV Fuzion

Benefits 2.0G VVT-I AT Elegance 1.8L AT 2.4 GLS Sport AT WARRANTY

POWERTRAIN

CHASSIS

SUSPENSION

AMENITIES

SAFETY

FUEL EFFICIENCY

COMFORT

STYLE

RELIABILITY

VERSATILITY


Innova has competitive advantage in Diesel MT models in terms of all functional benefits over Mitsubishi Adventure & Isuzu Crosswind.

Isuzu Crosswind (MT-D), Nissan Grand Livina (AT-Gas) & Mitsubishi Fuzion (AT-Gas) are among the closest competitors.

Innova has to add amenities and safety features in Gas AT models to be more competitive over Nissan Grand Livina and Mitsubishi Fuzion.

4. Innova positions strongly in a differentiation market opportunity


Continuation…..4. Innova is the only all-purpose vehicle for everyone that….. raised its level to a highly successful innovative MPV made to be dynamic and stylish to keep up your drive to live

life with the ones you love provides a riding comfort with the style, performance and

security of SUV best value for money highest rating in over-all performance in its category

Traditional positioning emphasis on a family vehicle, that is fuel efficient, affordable, spacious and safe drive.


Continuation…..4. “Positioning” brand identity from the maker….. “Everyone Loves the Innova” Its no wonder why the Innova is the most love

vehicle in the land. Made to be dynamic and stylish to keep up with your drive to live life with the ones you love.

The new, redesigned Innova became an instant favorite “for its versatility that has attracted a wider area of the market.

“This is one of the reasons it has become the commercial vehicle of choice for Filipino families across the country. It has held the No. 1 position in the AUV segment since it was introduced to the Philippine market seven years ago. This is a true sign that Filipino customers have come to love the Innova because of its Sure Advantages over the competition. - Michinobu Sugata, Toyota Motor Philippines president

http://www.toyota.com.ph/vehicle-innova.php


5a. Estimated market size of vehicle based from the survey

1. Total market share of commercial vehicle from January to June 2013 = 102,571* (est. sales Php90B)

* first time the 100,000 sales-milestone is passed after just 6 monthshttp://bestsellingcarsblog.com/2013/09/05/philippines-6-months-2013-now-with-top-

140-models-ranking/

Pos Model6m 2013

% Mkt May-June Pos 2012

Share 1 Toyota Vios 8,895 8.70% 3,129 1 12 Toyota Innova 7,331 7.10% 2,742 2 2

3Mitsubishi Montero Sport

6,969 6.80% 2,584 3 3

4 Toyota Fortuner 6,364 6.20% 2,264 4 45 Mitsubishi Mirage 4,084 4.00% 1,362 5 n/a6 Honda City 3,931 3.80% 1,246 7 97 Toyota Hiace 3,514 3.40% 1,252 6 108 Isuzu Crosswind 3,431 3.30% 1,129 10 79 Toyota Avanza 3,385 3.30% 1,122 11 510 Toyota Hilux 3,330 3.20% 1,131 9 11


5a. Estimated market size of vehicle Best Selling car Rank Make Units Sold

2012 1 Toyota Vios 14,979 2 Toyota Innova 11,805

3 Mitsubishi Montero Sports 11,798 Total Industry Sales: 182,955

2011 1 Toyota Vios 14,979 2 Toyota Innova 11,805 3 Mitsubishi Montero Sports 11,798 Total Industry Sales: 164,825

2010 1 Toyota Vios 15,391 2 Toyota Innova 12,608 3 Mitsubishi Montero Sports 12,247 4 Honda City 8,914 5 Toyota Fortuner 7,548 Total Industry Sales: 168,490

http://bestsellingcarsblog.com/2013/01/16/philippines-full-year-2012-toyota-leads-mitsubishi-at-world-best/


Toyota Motor Philippines Corp. continued to lead the market, accounting for a 40-percent share of total sales over a half year of 2013 (est. sales Php 36B= P90B x 40%)

Total market share of commercial vehicle from January to June 2013 was 102,571 units registered (est. sales Php 90B=P6.5B/7.2%)

Innova ranked no. 2 with the total units sold of 7,331 or 7.2% market share. Estimated sales in value is P 6.5B (lowest SRP P887k x 7331)

Last year, Innova ranked no.2 with 11,805 units sold or 6.5% market share (est. ave SRP P887k x 11805 = P10.4B)

2012 total market size = P161B For Toyota Motor Philippines, the Innova’s market performance has been

considered nothing short of phenomenal. As a testament to the demand for the Innova, every 16.7 minutes a newly assembled Innova rolls out the gates of Toyota Motor Philippines plant.

http://business.inquirer.net/47911/toyota-innova-the-filipino-everyman%E2%80%99s-mpv

5b. Estimated market size of Toyota Innova


5c. Estimated market size of vehicle based on consumer data 2012…

Est. total nationwide capacity per annum is 200,000

Average capacity per day 550 Estimated total investment for 2012 = P120B Out of 95.8M population in 2012, 34.5B age range from 15 & up

http://www.nscb.gov.ph/ncs/12thNCS/abstract/invited/IPS-Industry,%20Trade%20&%20Business%20Statistics_Mills.pdf

http://www.indexmundi.com/philippines/demographics_profile.html


5. Concluded that vehicle market size is Php 161BUsing 2012 data:1.Competitor data= P161B

(182,955 units)2.Company data = P161B (11,805 units x lowest SRP Innova P887k / 6.5%)3.Customer Usage data = P120B (200,000 units)


6a. Innova and other cars point of sales are in showroom, car fair, company website……


6b. What makes Innova different as a product?

Only Innova carried on the highly successful IMV [Innovative International Multi-purpose Vehicle] platform

features the riding comfort of a passenger car coupled with the style, performance and security of a sport utility vehicle.

uses engine range of VVT-i and D4D boast of integrated technologies


6b. Innova is the only MPV that has variety of choices


In DSL A/T model, Innova’s price is more flexible than Sportivo

PRICE

as of 9/1/2013 TOYOTA MITSUBISHI ISUZU MITSUBISHI NISSAN

INNOVA ADVENTURE CROSSWIND FUZION GRAND LIVINA

DIESEL/AT

SPORTIVO X AT 8 SEATER 1,205,000

2.5 V DSL AT WP 1,246,000

2.5 V DSL AT 1,231,000

2.5 G LMT DSL AT WP 1,228,000

2.5 G LMT DSL AT 1,213,000

2.5 G DSL AT WP 1,186,000

2.5 G DSL AT 1,171,000

2.5 E DSL AT 1,057,000


In DSL M/T model, Innova’s pricerange is > than Adventure & Crosswind

PRICE as of 9/1/2013 TOYOTA MITSUBISHI ISUZU TSUBISHI NISSAN


DIESEL/MT SUPER SPORT DSL SE 963,000 GLS SPORT 2.5 MT 913,000 GLX SE 2.5 MT 853,000 GX DSL 718,000 TX 2.5 MT 675,000 SPORTIVO X MT 8 SEATER 1,140,000 SPORTIVO X JS MT 9 SEATER 1,140,000 XT MT 10 SEATER 883,000 XL MT 10 SEATER 794,000 XS MT 6 SEATER 750,000 2.5 G LMT DSL MT WP 1,163,000 2.5 G LMT DSL MT 1,148,000 2.5 G DSL MT WP 1,121,000 2.5 G DSL MT 1,106,000 2.5 E DSL MT 992,000 2.5 J DSL MT 887,000


In GAS A/T model, Innova’s price range is > than Fuzion & Grand Livina

PRICE as of 9/1/2013 TOYOTA MITSUBISHI ISUZU MITSUBISHI NISSAN INNOVA ADVENTURE CROSSWIND FUZION GRAND LIVINA

GAS/AT GLS SPORT GAS AT 1,150,000

GLX GAS AT 950,000

ELEGANCE 1.8L AT 1,008,000

LUXURY 1.8L AT 928,000 2.0 V GAS AT WP 1,191,000 2.0 V GAS AT 1,176,000 2.0 G GAS AT WP 1,131,000 2.0 G GAS AT 1,116,000 2.0 E GAS AT 1,002,000


PRICE

as of 9/1/2013 TOYOTA MITSUBISHI ISUZU MITSUBISHI NISSAN


GAS/MT

2.0 G GAS MT WP 1,066,000

2.0 G GAS MT 1,051,000

2.0 E GAS MT 937,000

2.0 J GAS MT 832,000

Innova has no competitor in GAS M/T model


PRICE ANALYSIS

as of 9/1/2013

ADVENTURE CROSSWIND FUZION GRAND LIVINA

INNOVA HI-END LOW-END HI-END LOW-END HI-END LOW-END HI-END LOW-END

DSL A/T 3.4% > 14% <

DSL M/T 20% > 31% > 2% > 18% >

GAS A/T 4% > 5% > 18% > 8% >

GAS M/T

PRICE ANALYSIS TABLE


Concluded that Innova…

2.5 E DSL A/T model is 14% cheaper than Sportivo X A/T

DSL M/T is 2% - 18% higher than Crosswind and 20-31% higher than Adventure

Gas A/T is 4% - 5% higher than Fuzion and 8% - 18% higher than Grand Livina

Has no competitor in GAS M/T model Use Differentiated Pricing strategy model


1. Advertising2. Sales promotion3. Public relations4. Events & experiences5. Direct marketing6. Interactive marketing7. Personal selling8. Word of mouth

Toyota Innova uses both non-personal & personal modes of communications


8a. Toyota Innova: promotions, product launch, trade show


Toyota website


Toyota Innova TV Commercial

www.youtube.com/watch?v=-dIBa6rukIM


Website – promotes “Love” give emphasis on why everyone loves the Innova

“Love Moves In Different Ways” refers to engine VVT-i and D4D new technology that gives optimum driving performance on any road condition.

“Love Every Moment” offers comfort, excellent ride & drive quality, luxurious interior, additonal convenience and space cabin.

“Love at First Sight” offers sophisticated design and style Sales promotions such as price-off, discount, service

maintenance promo, product launch (PR), trade show (Event)

Innova TV commercial put emphasis on providing love of family

Toyota Innova communicates thru…


Mitsubishi Adventure: promos, website…


Website – “Get great space, value and mileage”

Sales promotions such as raffle prizes, repair assistance program promo, balik-bayan auto program, zero interest program.

Mitsubishi Adventure communicates thru…


Isuzu Crosswind: promos, website


Website -“Confidence behind the wheel” promotes quality assurance and worry-free drive.

Sales promotions such as price-off, prizes

Isuzu Crosswind communicates using…


Innova is the only vehicle that promotes intrinsic value that is “Love of Family”.

Innova and its competitors use almost the same type of sales promotions in different period of time.

Innova’s communication standouts among its competitors…


9. Toyota has different dealers nationwide

Site visit on showrooms and test drive

Nationwide Order thru Toyota dealers,

website, phone call Pick up by customer Cash or financing transactions


10. Toyota Innova generic winning strategy

Which of the 4 strategies are being used? (bold and underline to most dominant strategy) Low Cost Producer Supply and Distribution Leverage Differentiation Niche

41

SUMMARY


1. Toyota Innova PTM are families and everyone2. Who want an all purpose vehicle with excellent

performance and quality, safe drive, fuel & cost efficient, comfortable, spacious, best value for money

3. Can choose Mitsubishi Adventure and Isuzu Crosswind 4. Gap is all other brands of the same category are more

known for a typical family AUV focus mainly on fuel efficiency , affordable price, and durability.

5. Half year of 2013, the market size is 102,571 registered vehicles in the Phils., Toyota Innova sold 7,331 units, ranked no. 2 and niched 7.1% market share

http://bestsellingcarsblog.com/2013/09/05/philippines-6-months-2013-now-with-top-140-models-ranking/

Steps 1 to 5

Everyone loves the Innova


6. The New Innova is a MPV with smart engine power in 4 versions J,E,G, & V available in 22 variant, luxurious interior & spacious cabin

7. Price ranges from P 887k – P 1.246M8. Uses TV & print ads, sales promotions, events 9. Has 32 dealers nationwide 10. Uses differentiation approach, new-market

segment & proactive marketing strategies

Steps 6 to 10

Innova is best value for money

10 step marketing plan v61 18

Business

innova positions

toyota innova ptm

toyota innova lynie

nissan mitsubishi grand

mitsubishi adventure

mitsubishi fuzion gap

market size

market sharehttp