Toyota Marketing Final

HISTORY OF AUTOMOBILES 4

MASS PRODUCTION 8HYBRID ELECTRIC VEHICLES 10

TOYOTA COMPANY PROFILE 13

GUIDING PRINCIPLES AT TOYOTA 13FIVE MAIN PRINCIPLES OF TOYODA 14TOYOTA GLOBAL VISION 14HISTORY OF TOYOTA 14COMPANY PROFILE 16PRODUCTS AND SERVICES 17

SWOT ANALYSIS 17

STRENGTHS 17WEAKNESSES 17OPPORTUNITIES 18THREATS 18

SITUATIONAL ANALYSIS 18

TOYOTA PRIUS C 19

PRIUS C FEATURES 20BENEFITS OF HAVING A PRIUS C… 21

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PRIUS TARGET MARKET 23

DEMOGRAPHICS 23PSYCHOGRAPHIC 24GEOGRAPHIC 24

NEED ANALYSIS 25

CUSTOMER SURVEY: 25CAR DEALERS SURVEY: 28RESULTS: 31

MARKETING STRATEGY 32

PRODUCTION FACILITY: 32DISTRIBUTION: 32POSITIONING: 32

MARKETING COMMUNICATIONS PLAN 32

CREATIVE STRATEGY: 34COMMUNICATIONS MIX 34PRE-TESTING: 36MEDIA STRATEGY: 37TIMING AND BUDGETS: 38POST CAMPAIGN TESTING: 38

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AcknowledgementThe list is an endless one, if we take into account all those, whose fervent energies and zealous dedication enabled our humble mind and feeble fingers to learn, to think, to write and to read. We want to have this opportunity to thank all those who have had proved to be source of learning, inspiration and wisdom for us. Ranks highest above them are our Parents and Teachers…

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DedicationWe dedicate this report to our Parents and teachers whose support and guidance made us what we are today… This Report is dedicated to those students

who are looking for early victories in their professional life…

HISTORY OF AUTOMOBILES

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Nicolas-Joseph Cugnot is widely credited with building the first self-propelled mechanical vehicle or automobile in about 1769. Steam engines powered cars by burning fuel that heated water in a boiler, creating steam that expanded and pushed pistons that turned the crankshaft, which then turned the wheels. During the early history of self-propelled vehicles - both road and railroad vehicles were being developed with steam engines. (Cugnot also designed two steam locomotives with engines that never worked well.) Steam engines added so much weight to a vehicle that they proved a poor design for road vehicles; however, steam engines were very successfully used in locomotives. Historians, who accept that early steam-powered road vehicles were automobiles, feel that Nicolas Cugnot was the inventor of the first automobile. He also constructed two steam tractors for the French Army, one of which is preserved in the French National Conservatory of Arts and Crafts.

In 1771, Cugnot drove one of his road vehicles into a stone wall, making Cugnot the first person to get into a motor vehicle accident. This was the beginning of bad luck for the inventor. After one of Cugnot's patrons died and the other was exiled, the money for Cugnot's road vehicle experiments ended.

In 1807 Nicéphore Niépce and his brother Claude probably created the world's first internal combustion engine which they called a Pyréolophore, but they chose to install it in a boat on the river Saone in France.[15] Coincidentally, in 1807 the Swiss inventor François Isaac de Rivaz designed his own 'de Rivaz internal combustion engine' and used it to develop the world's first vehicle, to be powered by such an engine. The Niépces' Pyréolophore was fuelled by a mixture of Lycopodium powder (dried Lycopodium moss), finely crushed coal dust and resin that were mixed with oil, whereas de Rivaz used a mixture of hydrogen and oxygen.[15] Neither design was very successful, as was the case with others, such as Samuel Brown, Samuel Morey, and Etienne Lenoir with his hippomobile, who each produced vehicles (usually adapted carriages or carts) powered by clumsy internal combustion engines.

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In November 1881, French inventor Gustave Trouvé demonstrated a working three-wheeled automobile powered by electricity at the International Exposition of Electricity, Paris.

Karl Benz generally is acknowledged as the inventor of the modern automobile. An automobile powered by his own four-stroke cycle gasoline engine was built in Mannheim, Germany by Karl Benz in 1885, and granted a patent in January of the following year under

the auspices of his major company, Benz & Cie., which was founded in 1883. It was an integral design, without the adaptation of other existing components, and included several new technological elements to create a new concept. He began to sell his production vehicles in 1888.

In 1879, Benz was granted a patent for his first engine, which had been designed in 1878. Many of

his other inventions made the use of the internal combustion engine feasible for powering a vehicle.

His first Motorwagen was built in 1885, and he was awarded the patent for its invention as of his application on January 29, 1886. Benz began promotion of the vehicle on July 3, 1886, and about 25 Benz vehicles were sold between 1888 and 1893, when his first four-wheeler was introduced along with a model intended for affordability.

In August 1888 Bertha Benz, the wife of Karl Benz, undertook the first road trip by car, to prove the road-worthiness of her husband's invention.

In 1896, Benz designed and patented the first internal-combustion flat engine, called

boxermotor. During the last years of the nineteenth century, Benz was the largest automobile company in the world with 572 units produced in 1899 and, because of its size, Benz & Cie., became a joint-stock company.

Daimler and Maybach founded Daimler Motoren Gesellschaft (DMG) in Cannstatt in 1890, and sold

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their first automobile in 1892 under the brand name, Daimler. It was a horse-drawn stagecoach built by another manufacturer that they retrofitted with an engine of their design. By 1895 about 30 vehicles had been built by Daimler and Maybach, either at the Daimler works or in the Hotel Hermann, where they set up shop after disputes with their backers. Benz, Maybach and the Daimler team seem to have been unaware of each others' early work. They never worked together; by the time of the merger of the two companies, Daimler and Maybach were no longer part of DMG.

Daimler died in 1900 and later that year, Maybach designed an engine named Daimler-Mercedes that was placed in a specially ordered model built to specifications set by Emil Jellinek. This was a production of a small number of vehicles for Jellinek to race and market in his country. Two years later, in 1902, a new model DMG automobile was produced and the model was named Mercedes after the Maybach engine which generated 35 hp. Maybach quit DMG shortly thereafter and opened a business of his own. Rights to the Daimler brand name were sold to other manufacturers.

Karl Benz proposed co-operation between DMG and Benz & Cie. when economic conditions began to deteriorate in Germany following the First World War, but the directors of DMG refused to consider it initially. Negotiations between the two companies resumed several years later when these conditions worsened and, in 1924 they signed an Agreement of Mutual Interest, valid until the year 2000. Both enterprises standardized design, production, purchasing, and sales and they advertised or marketed their automobile models jointly, although keeping their respective brands. On June 28, 1926, Benz & Cie. and DMG finally merged as the Daimler-Benz company, baptizing all of its automobiles Mercedes Benz, as a brand h onoring the most important model of the DMG automobiles, the Maybach design later referred to as the 1902 Mercedes-35 hp, along with the Benz name. Karl Benz remained a

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member of the board of directors of Daimler-Benz until his death in 1929, and at times, his two sons participated in the management of the company as well.

The first design for an American automobile with a gasoline internal combustion engine was made in 1877 by George Selden of Rochester, New York. Selden applied for a patent for an automobile in 1879, but the patent application expired because the vehicle was never built. After a delay of sixteen years and a series of attachments to his application, on November 5, 1895, Selden was granted a United States patent (U.S. Patent 549,160) for a two-stroke automobile engine, which hindered, more than encouraged, development of automobiles in the United States. His patent was challenged by Henry Ford and others, and overturned in 1911.

In 1893, the first running, gasoline-powered American car was built and road-tested by the Duryea brothers of Springfield, Massachusetts. The first public run of the Duryea Motor Wagon took place on September 21, 1893, on Taylor Street in Metro Center Springfield. To construct the Duryea Motor Wagon, the brothers had purchased a used horse-drawn buggy for $70 and then installed a 4 HP, single cylinder gasoline engine. The car had a friction transmission, spray carburetor, and low tension ignition. It was road-tested again on November 10, when the The Springfield Republican newspaper made the announcement. This particular car was put into storage in 1894 and stayed there until 1920 when it was rescued by Inglis M. Uppercu and presented to the United States National Museum

MASS PRODUCTION

The large-scale, production-line manufacturing of affordable automobiles was debuted by Ransom Olds at his Oldsmobile factory in 1902 based on the assembly line techniques pioneered by Marc Isambard Brunel at the Portsmouth Block Mills, England in 1802. This concept was greatly expanded by Henry Ford, beginning in 1914.

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As a result, Ford's cars came off the line in fifteen minute intervals, much faster than previous methods, increasing productivity eightfold (requiring 12.5 man-hours before, 1 hour 33 minutes after), while using less manpower. It was so successful, paint became a bottleneck. Only Japan black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926. This is the source of Ford's apocryphal remark, "any color as long as it's black". In 1914, an assembly line worker could buy a Model T with four

months' pay.

Ford's complex safety procedures—especially assigning each worker to a specific location instead of allowing them to roam about—dramatically reduced the rate of injury. The combination of high wages and high efficiency is called "Fordism," and was copied by most major industries. The efficiency gains from the assembly line also coincided with the economic rise of the United States. The assembly line forced workers to work at a certain pace with

very repetitive motions which led to more output per worker while other countries were using less productive methods.

In the automotive industry, its success was dominating, and quickly spread worldwide seeing the founding of Ford France and Ford Britain in 1911, Ford Denmark 1923, Ford Germany 1925; in 1921, Citroen was the first native European manufacturer to adopt the production method. Soon, companies had to have assembly lines, or risk going broke; by 1930, 250 companies which did not, had disappeared.

Development of automotive technology was rapid, due in part to the hundreds of small manufacturers competing to gain the world's attention. Key developments included electric ignition and the electric self-starter (both by Charles Kettering, for the Cadillac

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Motor Company in 1910–1911), independent suspension, and four-wheel brakes.

Since the 1920s, nearly all cars have been mass-produced to meet market needs, so marketing plans often have heavily influenced automobile design.

HYBRID ELECTRIC VEHICLES

A hybrid electric vehicle (HEV) is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine (ICE) propulsion system with an electric propulsion system.

Modern Hybrid Electric Vehicles (HEVs) make use of efficiency-improving technologies such as regenerative braking, which converts the vehicle's kinetic energy into electric energy to charge the battery, rather than wasting it as heat energy as conventional brakes do. Some varieties of HEVs use their internal combustion engine to generate electricity by spinning an electrical generator (this combination is known as a motor-generator), to either recharge their batteries or to directly power the electric drive motors. Many HEVs reduce idle emissions by shutting down the ICE at idle and restarting it when needed; this is known as a start-stop system. A hybrid-electric produces less emissions from its ICE than a comparably-sized gasoline car, since an HEV's gasoline engine is usually smaller than a comparably-sized pure gasoline-burning vehicle (natural gas and propane fuels produce lower emissions) and if not used to directly drive the car, can be geared to run at maximum efficiency, further improving fuel economy.

Ferdinand Porsche in 1901 developed the Lohner-Porsche Mixte Hybrid, the first gasoline-electric hybrid automobile in the world. In 1900, while employed at Lohner Coach Factory, Ferdinand Porsche developed the Mixte, a 4WD series-hybrid version of "System Lohner-Porsche" electric carriage previously appeared in 1900 Paris World Fair. The Mixte

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included a pair of generators driven by 2.5-hp Daimler IC engines to extend operating range and it could travel nearly 65 km on battery alone. It was presented in the Paris Auto Show in 1901. The Mixte broke several Austrian speed records, and also won the Exelberg Rally in 1901 with Porsche himself driving. The Mixte used a gasoline engine powering a generator, which in turn powered electric hub motors, with a small battery pack for reliability. It had a top speed of 50 km/h and a power of 5.22 kW during 20 minutes.

- George Fischer sold hybrid buses to England in 1901; Knight Neftal produced a racing hybrid in 1902.

- In 1905, H. Piper filed a US patent application for a hybrid vehicle.

- A Canadian company produced a hybrid car for sale in 1915.

- The 1915 Dual Power, made by the Woods Motor Vehicle electric car maker, had a four-cylinder ICE and an electric motor. The first gasoline-electric hybrid car was released by the Woods Motor Vehicle Company of Chicago in 1917. The hybrid was a commercial failure, proving to be too slow for its price, and too difficult to service.

- The United States Army's 1928 Experimental Motorized Force tested a gasoline-electric bus in a truck convoy.

- In 1931 Erich Gaichen invented and drove from Altenburg to Berlin a 1/2 horsepower electric car containing features later incorporated into hybrid cars. Its maximum speed was 25 miles per hour (40 km/h), but it was licensed by the Motor Transport Office, taxed by the German Revenue Department and patented by the German Reichs-Patent Amt. The car battery was re-charged by the motor when the car went downhill. Additional power to charge the battery was provided by a cylinder of compressed air which was re-charged by small air pumps activated by vibrations of the chassis and the brakes and by igniting oxyhydrogen gas.

- A more recent working prototype of the HEV was built by Victor Wouk. Wouk installed a prototype hybrid drivetrain (with a 16 kilowatts (21 hp) electric motor) into a 1972 Buick Skylark provided by GM for the 1970 Federal Clean Car Incentive

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Program, but the program was stopped by the United States Environmental Protection Agency (EPA) in 1976 while Eric Stork, the head of the EPA at the time, was accused of a prejudicial cover-up. Wouk's work with HEVs in the 1960s and 1970s earned him the title as the "Godfather of the Hybrid".

- The regenerative braking system, the core design concept of most production HEVs, was developed by electrical engineer David Arthurs around 1978, using off-the shelf components and an Opel GT. His vehicle exhibited 75 miles per US gallon (3.1 L/100 km; 90 mpg-imp) fuel efficiency.

- In 1989, Audi produced its first iteration of the Audi Duo (the Audi C3 100 Avant Duo) experimental vehicle, a plug-in parallel hybrid based on the Audi 100 Avant quattro. This car had a 9.4 kilowatts (12.8 PS; 12.6 bhp) Siemens electric motor which drove the rear road wheels. The intent was to produce a vehicle which could operate on the engine in the country, and electric mode in the city. Mode of operation could be selected by the driver. But this car was very heavy.

- The Clinton administration initiated the Partnership for a New Generation of Vehicles (PNGV) program on 29 September 1993, that involved Chrysler, Ford, General Motors, USCAR, the DoE, and other various governmental agencies to engineer the next efficient and clean vehicle.

- The first mass-produced hybrid vehicle was the Toyota Prius, launched in Japan in 1997, and followed by the Honda Insight, launched in 1999 in the United States and Japan.

- The 2003 Civic Hybrid appears identical to the non-hybrid version, but delivers 50 miles per US gallon (4.7 L/100 km; 60 mpg-imp), a 40 percent increase compared to a conventional Civic LX sedan.

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- The redesigned 2004 Toyota Prius (second generation) improved passenger room, cargo area, and power output, while increasing energy efficiency and reducing emissions.

- In 2005, Toyota and Ford entered into a licensing agreement in March 2004 allowing Ford to use 20 patents from Toyota related to hybrid technology, although Ford's engine was independently designed and built.

- Honda also released a hybrid version of the Accord but discontinued it in 2007 citing disappointing sales.

- Commencing in the fall of 2007 General Motors began to market their 2008 Two-Mode Hybrid models of their GMT900 based Chevrolet Tahoe and GMC Yukon SUVs, closely followed by the 2009 Cadillac Escalade Hybrid.

TOYOTA COMPANY PROFILE

GUIDING PRINCIPLES AT TOYOTA

1. Honor the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world.

2. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities.

3. Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities.

4. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide.

5. Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and management.

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6. Pursue growth through harmony with the global community via innovative management.

7. Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.

FIVE MAIN PRINCIPLES OF TOYODA

Always be faithful to your duties, thereby contributing to the company and to the overall good.

Always be studious and creative, striving to stay ahead of the times.

Always be practical and avoid frivolousness.

Always strive to build a homelike atmosphere at work that is warm and friendly.

Always have respect for spiritual matters, and remember to be grateful at all times.

TOYOTA GLOBAL VISION

“Toyota will lead the way to the future of mobility enriching lives around the world with the safest and most responsible ways of

moving people.Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be

rewarded with a smile.We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way”

HISTORY OF TOYOTA

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Look back at the history of Toyota, starting with the birth of founder Sakichi Toyoda. It traces the company's development through 1937 from when Toyota Motor Corporation was established to when the 2 millionth Prius hybrid was sold.

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1929 Automatic-loom patent is sold to a British company.1930 Kiichiro Toyoda begins research on small gasoline-powered

engine.1933 Automobile Department is established at Toyoda Automatic

Loom Works, Ltd.1935 The Toyoda precepts are compiled.1936 The AA Sedan is completed.1937 Toyota Motor Co., Ltd. is established.1938 Honsha Plant begins production1950 Company faces a financial crisis; Toyota Motor Sales Co., Ltd.

is established.1951 Suggestion System begins.1955 The Toyopet Crown, Toyopet Master and Crown Deluxe are

launched.1957 The first prototypes of the Crown are exported to the United

States; Toyota Motor Sales U.S.A., Inc. is established.1959 Motomachi Plant begins production.1962 Joint Declaration of Labor and Management is signed.1965 Toyota wins the Deming Application Prize for quality control.1966 The Corolla is launched; business partnership with Hino

Motors Ltd. begins.1967 Business partnership with Daihatsu Motor Co., Ltd. begins.1974 Toyota Foundation is established.1975 The prefabricated housing business begins.1982 Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. are

merged into Toyota Motor Corporation.1984 Joint venture with General Motors (New United Motor

Manufacturing, Inc.) begins production in the USA.1988 Toyota Motor Manufacturing, USA, Inc. (present TMMK)

begins production.1989 The Lexus brand is launched in the USA.1992 Toyota Motor Manufacturing (United Kingdom) Ltd. begins

production.1997 The Prius is launched as the world's first mass-produced

hybrid car.1999 Cumulative domestic production reaches 100 million

vehicles.2000 Sichuan Toyota Motor Co., Ltd. begins production in China.2001 Toyota Motor Manufacturing France S.A.S. begins production

in France.2002 Toyota enters Formula One World Championship; Tianjin

Toyota Motor Co., Ltd. begins production in China.2004 The Toyota Partner Robot is publicly unveiled.

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2005 The Lexus brand is introduced in Japan.2008 Worldwide Prius sales top 1 million mark.2010 Worldwide Prius sales top 2 million mark; Toyota and Tesla

Motors agree on joint EV development.

COMPANY PROFILE

Company Name Toyota Motor CorporationPresident & Representative Director

Akio Toyoda

Date Founded Aug 28, 1937Capital 397.05 billion Yen (as of March 31,

2011)Main Business Activities Motor Vehicle Production and

SalesNumber of Employees (Consolidated)

317,716 (as of March 31, 2011)

- Toyota is ranked 5th among the world’s largest corporations in the 2008 Fortune Global 500.

- Toyota is ranked 1st among the world’s largest automaker corporations in the 2008 Fortune Global 500.

- Have 53 overseas manufacturing companies, in 27 countries/regions.

Toyota Pakistan

In Pakistan, Toyota has made operational alliance with Indus Motor Company Ltd. Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990.

Indus Motor Company’s vision statement is:

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“To be the most respected and successful enterprise delighting customers with a wide range of products and solutions in the

automobile industry with the best people and best technology”

PRODUCTS AND SERVICES

Automobiles

Materials handling Equipment

Logistics

Textile Machinery

SWOT ANALYSIS

STRENGTHS

Toyota established as reliable, quality vehicle that will hold value.

Strong gas mileage in a sensitive economy.

Early buyers report satisfaction.

World’s third largest car manufacturer, biggest Japanese car manufacturer

Reliable and High Quality Image

R&D, biggest spend amongst car manufacturers; innovative

‘Just In Time’ Production

Lexus brand and other strong brands.

Good dealerships and distribution network all over Pakistan.

WEAKNESSES

Price premium in a sensitive subcompact market.

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Civic hybrid has already entered the Pakistani market.

OPPORTUNITIES

Early buyers report that they have an image of Toyota as more innovative and less conservative.

Opportunity to attract new Toyota customers by opening a new segment.

Theme of youthful practicality.

Price and features attract first-time buyers.

Online activities, online buying.

Customization of features.

Increase in fuel prices and CNG prices provide an opportunity for Toyota to introduce its Hybrids in the market.

THREATS

Strong competition from Honda, and Suzuki, Kia.

Because of electricity shortfall in Pakistan, it can be difficult to recharge the vehicle.

Volatile electricity prices.

Public/Alternative transportation.

Lack of awareness about Hybrid technology in Pakistan.

SITUATIONAL ANALYSIS The Toyota name is associated with strong, dependable qualities that have gained the company a large and loyal consumer base. The release of the Prius C adds an extra dimension to Toyota’s identity—one that is yet to be fully recognized by its target consumers. As HEVs emerge on the market, it is important to firmly establish the Prius C as a car in its own class, while also securing it to the Toyota legacy.

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TOYOTA PRIUS C

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PRIUS C FEATURES

What: 2012 Toyota Prius c

When: Early 2012

How much: Toyota hasn’t released pricing information, but reviewers expect it won’t cost more than $20k. (Rs. 20,00,000)

Known worldwide for its outstanding fuel economy ratings of 51/48 mpg city/highway, the Toyota Prius is one of the most successful cars on the market. So, naturally, it needed some siblings. One of the new additions to the Prius lineup is the Toyota Prius c.

Having two engines, One Electric and other traditional Fuel engine, makes Prius a more powerful vehicle than traditional car.

The PHV will offer electric-only driving and hybrid driving.

Prius c will be the most fuel-efficient car in the class of Hybrids, besting the 2012 Honda Civic Hybrid’s combined fuel economy rating of 45 mpg. Prius C having ratings above 51/48 mpg city/highway, or 4.0 L/100km (city) and 4.2L/100km (Highway).

Produce 70% fewer smog-forming emissions than a typical conventionally powered new vehicle.

More efficient electric power from a high rpm generator, a high input/output performance battery and a high-voltage electrical system, and

Better energy optimization management, torque-on-demand control and regenerative-brake control.

A super-efficient, smooth-as-silk internal combustion engine and a silent-running, high-output electric motor, that sound you barely hear is your hybrid vehicle doing its thing.

Designed to automatically allocate power in the most efficient manner possible, Toyota's Hybrid Synergy Drive quietly

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switches from gas engine to electric motor and back without you even being aware of it.

BENEFITS OF HAVING A PRIUS C…

Lowered Emissions

For Toyota's hybrids, outstanding driving performance and increased fuel savings just aren't enough. They also aim to be environmentally friendly and clean vehicles with ultra-low emissions that meet and surpass the most rigorous and demanding standards. With not only fewer emissions, but cleaner as well. In fact, Hybrid Synergy Drive vehicles produce 70% fewer smog-forming emissions than a typical conventionally powered new vehicle. As well, Toyota hybrid vehicles don't allow the release of "evaporative emissions," gas vapor that normally escapes from the tank and fuel lines into the air. While some diesels may achieve high fuel efficiency, it is estimated that even the best diesels produce more than 17 times the amount of smog-forming emissions than do vehicles with the Hybrid Synergy Drive. No wonder Toyota's hybrids are known far and wide as good friends of the earth.

Fuel Efficiency

Even if Toyota's hybrids offered no other benefits, fuel efficiency alone would place them at the head of the pack. By seamlessly combining both gas and electric power, the hybrid system can take full advantage of the synergies between the two thus complementing each power source. In effect, Toyota's hybrids offer the best of all possible worlds for economy and energy efficiency. Other power trains fritter away energy at stoplights, during braking and whenever the engine isn't running at optimum speed; the Hybrid Synergy Drive actually stores that energy in the battery to be used when needed. As well, superb aerodynamics and weight-saving features help Toyota hybrids squeeze even more savings out of every liter of gas. No waste while you make haste.

Driving Performance

They said it couldn't be done: a car that was fun to drive, energetic and full of zip while boasting unsurpassed fuel efficiency at the same

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time. Perhaps that might be true using a conventional approach where output and torque are jacked up by increasing engine displacement, resulting in better performance but lower fuel efficiency. But "they" didn't count on Toyota's Hybrid Synergy Drive. Thanks to the hybrid system's power split device, which automatically determines the right configuration of gas engine-electric motor power distribution, there no longer needs to be a trade-off between fuel efficiency and power. And the latest version of the system features:

Increased drive power through a higher output motor

More efficient electric power from a high rpm generator, a high input/output performance battery and a high-voltage electrical system, and

Better energy optimization management, torque-on-demand control and regenerative-brake control.

Bottom line: You get the best of both worlds in the form of outstanding acceleration, a powerful and smooth response, and top fuel economy. More power from less gas.

Quietness

Thanks to a super-efficient, smooth-as-silk internal combustion engine and a silent-running, high-output electric motor, that sound you barely hear is your hybrid vehicle doing its thing. Designed to automatically allocate power in the most efficient manner possible, Toyota's Hybrid Synergy Drive quietly switches from gas engine to electric motor and back without you even being aware of it. Add Toyota's famed attention to detail, superior sound-proofing through the use of damping coating behind the dashboard and floor, vibration-reducing foam, and aerodynamic design to reduce wind noise--and it's no wonder a ride in a Toyota hybrid feels more like gliding than driving. Welcome to the sounds of silence.

Competitive Comparison

Where to start?

When it comes to clean, Toyota's hybrids rank above the rest, with the 2006 Prius rated at the top of the mid-size class designed to meet the stringent California Air Resources Board (CARB) AT-PZEV or

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Advanced Technology Partial Zero Emissions. While the Highlander Hybrid is first among mid-size SUVs designed to meet the CARB SULEV or Super Ultra Low Emission Vehicle rating.

Fuel Efficiency? Can't be beat. If you don't believe us, check out the Office of Energy Efficiency's Fuel Consumption Guide. The 2007 Camry Hybrid is in a class of its own with a combined fuel consumption rate of 5.7L/100km both city and highway while the 2006 Prius comes in at a minuscule 4.0 L/100km (city) and 4.2L/100km (Hwy). As for the 2006 Highlander Hybrid, it scores 7.5 L/100km in the city and 8.1 L/100km on the highway. That ranks it higher than some subcompacts!

Driving Performance? One word: powerful. It's no secret that Toyota's hybrids deliver driving performance and power equivalent to vehicles with much larger engine displacements. For example, the Prius, with its 1.5L engine, boasts acceleration that compares to a 2.0L conventional gas-driven car. The Highlander Hybrid, with a 3.3L V6, matches a V8 4L engine SUV or 5.0L sedan in accelerating power. And the Camry Hybrid's 4-cylinder engine outperforms many conventional vehicles equipped with V6 engines.

Put it all together-clean, efficient, powerful-and it's no contest.

Toyota's hybrids have only themselves to compete against, striving for even lower emissions, more fuel savings, and enhanced performance with each new generation of environmentally-friendly vehicles.

PRIUS TARGET MARKET

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We have segmented our market on basis of:

DEMOGRAPHICS

The consumer is either male of female and between 30 and 50 years old (mid-life). They are likely to be married (Full nest or Empty Nest) and with family responsibilities. They are affluent and well-informed and educated adults, classed in the AB socioeconomic segment. Therefore they are in higher managerial, administrative or professional occupations and of upper middle class. Hence they are not only prepared to purchase environmentally-friendly but also able to pay more for it (higher disposable income). They are either their own property owner or rent privately. They are most likely to already own a lower medium car or similar.

PSYCHOGRAPHIC

Within the demographic profile three main mindsets of probable buyers could be identified

1. Early Adopters/ Technology pioneers

- Those who are interested in the latest technology/ innovation, and must be the first on the block to own this technology and embrace it.

2. Environmentally Friendly

- Those who are recognizing the environmental impact of motoring and would like to do something about it.

- Those only “somewhat concerned” and seeking to express their concern and ease their conscience without causing themselves too

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much inconvenience. The socially aware mainstream, but more hesitant to buy new technology.

3. Value Conscious

- Those who are looking for the ideal combination of high fuel economy and low maintenance cost in long run at an affordable price.

GEOGRAPHIC

The target buyer is more likely to come from an urban area or a large city.

NEED ANALYSIS

CUSTOMER SURVEY:

1. Do you feel that fuel emitted by cars is mainly responsible for increasing pollution level?

a) Strongly Disagree.

b) Disagree.

c) Somewhat Agree.

d) Agree.

e) Strongly Agree.

2. Are you aware of the growing shortage of fuel/oil reserves?a) Yes. b) No. c) Don’t know.

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3%23%

48%

28%

abcde

3. Will you buy a car that emits less pollution (eco-friendly), as a replacement of your current one?

a) Yes. b) No. c) Don’t know.

4. Are you willing to pay a little more for that eco-friendly car?

a) Yes. b) No. c) Don’t know.

5. Will you pay more for a car that consumes less fuel and gives better mileage or has better driving economy?

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75%

15%10%

YesNoDon’t know

85%

10% 5%

YesNoDon’t know

75%

18%8%

YesNoDon’t know

a) Yes. b) No. c) Don’t know.

6. Which attribute while selecting a car attracts you the most, or you think is more important?

a) Design/Style.

b) Affordable Price.

c) Mileage.

d) Easy and Smooth Drive.

e) Innovative features.

f) Support Services.

7. How much mileage do you want in a car?

a) 20- 30 km/liter

b) 30- 40 km/liter

c) 40-50 km/liter

d) 50 or above.

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25%

30%

3%

30%

10%3%

abcdef

20%

35%18%

28%

abcd

83%

13%5%

YesNoDon’t know

8. Do you feel that your current car is noisy and do not have smooth drive?

a) Yes. b) No. c) Don’t know.

9. Will you pay a little more for a car that is having stylish design and innovative features?

a) Yes. b) No.c)

Don’t know.

CAR DEALERS SURVEY:

1. Are your customer conscious

about smoke emitted by

their cars or they demand

cars that are eco- friendly?

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25%

70%

5%

YesNoDon’t know

78%

8%15%

YesNoDon’t know

a) Yes. b) No. c) Don’t know.

2. Are your customers willing to

pay more price for, good design and innovative features?

a) Yes. b) No. c) Don’t know.

3. Are your customers

willing to pay more for a car that gives better mileage, of approx more than 25 km/liter?

a) Yes. b) No. c) Don’t know.

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17%

50%

33%

YesNoDon’t know

50%50% YesNoDon’t know

50%

33%

17%

YesNoDon’t know

4. How many customers out of 10 demand Green car or Eco-friendly car?

a) Yes.b) No.c) Don’t know.

5. Which age group shows more awareness for or demands for green cars?

a) 20-25

b) 25-30

c) 30-35

d) 35+

6. Are your customers willing to pay more for a Hybrid car emitting less pollution?

a) Yes. b) No. c) Don’t know.

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50%

33%

17%

abcd

33%

67%

YesNoDon’t know

7. Is your company planning to introduce Green Cars or Hybrid Cars?

a) Yes. b) No. c) Don’t know.

8. Which attribute do your customers like most in a car, which attracts them more?

a) Stylish design

b) Affordable price.

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No100%

83%

17%

YesNoDon’t know

a17%

b67%

d17%

c) Better mileage.

d) Smoother drive.

e) Innovative features.

f) Good Support services.

9. Do your customers demand a car that less noisy?

a) Yes. b) No. c) Don’t know.

RESULTS:

From the above responses we can infer following results, which provides useful guidance to develop our Marketing Strategy:

About 75% of our respondents feel that, cars are the major contributor in Global warming; they emit heavy amounts of pollution. And about 85% of our respondents are willing to buy an Eco-friendly car, which emits less pollution, and about 75% are also willing to pay a bit more for such a car.

About 75% of our

respondents acknowledged that they are aware of the growing shortage of fuel; about 10% said that they don’t know about it.

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Yes100%

It is another positive sign for launching Toyota Prius C in Pakistan, because people will prefer a car that gives better mileage.

Better mileage and less fuel consumption is one of the benefits of having a Prius C, and about 82% are willing to bear extra cost for having such a car.

Most of the dealers and customer responded that they want a Stylish car with affordable price, having innovative features and Smooth drive. And Toyota Prius C have all of demanded the features, but a Price is a bit high, but most of the respondents have already agreed to bear extra cost, for an Eco-Friendly car.

Most of our respondents want a car that gives a mileage of 25-40 km/liter, Toyota Prius C again fulfils the expectations as it gives mileage of 4.0L/100km (city) and 4.2L/100km (Highway).

People between the age of 20-35 shows more awareness for Green cars and a demand to have them.

MARKETING STRATEGY

PRODUCTION FACILITY:

Toyota Motors has strategic Alliances with a local company Indus Motor comp. Toyota manufactures cars locally in Pakistan with the help of Indus Motor. Because Prius C’s technology is totally different than all of Toyota other cars, so this car cannot be manufactured locally. A new manufacturing facility has to be constructed for manufacturing the Prius locally. So Initially cars will be imported from Japan on order.

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DISTRIBUTION:

Toyota Prius will be available at all existing Toyota Showroom and Dealerships. And these dealerships will also carry out repair and maintenance activities.

POSITIONING:

Toyota Prius C incorporates features, mileage and design that no other car has offered so far. It will be one of its kind in Pakistan. And its price is also a bit higher than its comparable gas driven car models. So positioning strategy will be “More for More” as it will provide More benefits for More cost.

MARKETING COMMUNICATIONS PLAN The Prius was derived from a research project and its conversion to a mass produced car might be more with the intend to improve Toyota’s image, a kind of practical socially responsibility report, showcasing Toyota’s engineering capabilities at the same time.

Our Marketing Plan aims to achieve the following objectives:

Strengthening the relationship with the Toyota brand.

Increase the consideration of Toyota when planning a new car purchase.

The target market should be reached as fully as possible.

Customer and Consumers have to be made aware of a new product and its brand name.

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More

for

More

Being a new product with a new technology, a prime objective is to educate consumers and explain the working of the Prius and advantages of this.

Target markets should be excited about the new Prius and spread buzz/ word of mouth.

Communications should motivate consumers to find out more about the Prius; visit the website, order brochures, visit a local dealer, order a test drive.

The Prius should be considered as a full and valid alternative to traditional cars.

Ultimately communications should lead to a purchase, a higher percentage of showroom visits should be turned into sales.

As this product is new there are no historical data that would allow some form of trend extrapolation to determine what is possible or what is realistic. However the Prius has been launched in Japan and the USA, but these are two different markets with a different environment and therefore only to some degree of valid to be compared with the Pakistani market.

If all or some of these objectives will be met can only be determined by post campaign research which should start during the campaign and be continued in intervals to monitor the situation. Considering the performance of the Prius in other markets sales of around 1500 units in the first year should be set a goal, 2000 in the second and 3000 in the third. With only two cars in the hybrid market the Prius should become the market leader.

CREATIVE STRATEGY:

The Prius offer features that no other car offers. These unique selling points should be emphasized in the promotions and any barriers to purchase are weakened at the same time (unique selling proposition strategy). Promotions messages are like to change over time, early promotion should concentrate on:

The awareness and education aspect,

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Whereas later executions can focus on creating excitement and focus on specific benefits.

To appeal to the target market promotions should promote the car and its users to be innovative, imaginative, bold, intelligent, revolutionary and pioneering. Identified barriers to purchase (high initial cost, unproven technology, product ignorance) should be overcome by stressing the long run efficiency, success in Japan and product information/explanation. It is important to stress that the Prius does not need any external recharging (confusion with traditional electric vehicles) and offers the same convenience as a normal car, the Prius should therefore perceived as ‘least brown’ and not ‘green’ (and all the disadvantages associated with that). The campaign is intended “to make the technology come alive”

COMMUNICATIONS MIX

There are various communication methods. Two important factors have to be considered when selecting the communication for the Prius:

1. The type of product (high involvement) and,

2. Its stage in the product life cycle (introduction).

These two factors influence the consumer/customer buying behavior and therefore the mix has to be adjusted to fit these conditions.

ublic relations are useful because they enjoy a high credibility at a low cost, but the exact message cannot be controlled. This communication form will be of major

importance for the Prius campaign as many buyers draw their information from the media. Being represented, talked about in those will be an essential step in at least being considered as a choice.

P

ersonal selling is very important because a car is a high involvement product and affords more conviction for purchase which is given by PS. Personal selling will be carried out by the

local dealers who in advance should have been trained to be familiar P

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with the Prius car (dealership launch material, conferences) and its advantages and how to overcome objections.

Personal selling will also be of major importance when targeting the corporate/ fleet buying segment, because these customers buy in bulk they expect to be given a presentation by a Toyota’s representative to convince them that Prius is suitable for their fleet.

ales promotion, monetary incentives to buy, is most effective to trigger a decision or purchase. SP is useful at the beginning of the product life cycle to increase acceptance or

provoke a trial. Toyota sold Prius below its cost, in introductory phases in US market; the plan again here is to sell below cost in Pakistan. To get the biggest benefit out of this Toyota should advertise this fact. Otherwise SP should be used spontaneously once a slowdown in sales can be detected (PLC).

S

dvertising, a paid form of non-personal mass communication from an identified sponsor, should be the major communication mix ingredient for this campaign. Advertising

is controllable, but expensive esp. TV. Advertising can be used to increase awareness, create interest and inform about Prius C. Customers or consumer are reached by placing adverts in their target media.

A

irect mail in the form of newsletters can useful for this campaign to create awareness (pre launch) and inform or offer of opportunity to book a test drive. Toyota has already

a database in place but can also buy further data. Direct mail is also important when targeting the corporate buyers and provides them with detailed information about the Prius. People who receive direct mail in error or those who are not interested in the offers might feel annoyed and lower their image of Toyota.

D

PRE-TESTING:

Pre-testing is important esp. for a totally new product, to check if the message sent is conceived as intended by the target market. Testing will help to determine the optimum mix between imagery and copy and reduce the risk of failure in general. Testing with test audiences who represent the general public and the target audience should include concept, style and creative strategy of all intended

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communications and executions. A share of the budget has to be allocated for pre-testing.

irect mail should be one of the first activities with pre-launch awareness letters being sent to existing Toyota customers; those in segment C and above OR fit the target

group description (above segment C because 40% of buyers in USA & Japan previously owned a more expensive car). Toyota can also buy additional databases from media that their target has subscribed to (e.g. Daily Telegraph, as far as legally possible) and then filter these for the target demographic profile.

D

A second wave of direct mail upon the launch with more discrete information should follow and formally announce the launch of the Prius. On this occasion the audience should be given the opportunity to either pre-order the car (benefit of Toyota loyalty) or request a test drive at a local dealer. It will have to be integrated/tuned with local dealer’s own mailing efforts. Direct mail should also be sent to corporate buyers, which ought to be included in Toyota’s database. Their mailings should be customized to emphasize the features that are important for fleet buyers. Direct mail should also be used in a digital form (email) to underline the Prius contemporary image. Emails could be designed to enable to directly pre-order the car and purchase the car online, something that would appeal to the pioneer mindset.

ress releases and press conferences ought to create positive public relations. These can be used for the launch and early stages of the Prius to raise awareness and create interest for

the new product just as educate the public about the Prius’ working and advantages. Effectiveness will be increased when PR appears in media consumed by the target market. Considering the Prius revolutionary technology media will be prepared to talk about this product and even a certain amount of requested coverage could be expected.

P

dvertising will be utilized as one of the most important communication methods, along with PR. The use of TV, Print, Internet and Outdoor seems most promising to reach and

affect the target market. The creative strategy will used to place advertising in target media, with slightly different executions to

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meet each of the targeted mindsets in their individual media. Advertising will go through different stages to aware, educate and interest the target audience and then hopefully result in a dealer visit.

MEDIA STRATEGY:

TV is a favorite medium because of its wide reach and its high impact that is useful for showcasing a high impact product such as a car. The volume of TV ads however is limited by its costs but popular target group programmers (consult research) and times should be used as extensively as possible. Identified TV stations: Geo New, Gen Entertainment, Express News, Hum TV, Aag TV.

Print adverts will be placed in quality newspapers and esp. their weekend supplements (back cover & second page). Additional ads are placed in car industry magazines and those read by the target group.

Titles identified to read by the target audience: Dawn Newspaper, The Times magazine, The Nationalist, Express, Khabrain, Jang.

PR activities will concentrate on target audience print publications but also involve TV programs that deal with cars, the environment and may be even radio programs. Press releases will be provided to car industry and target group used media.

Outdoor billboards should be placed in urban areas to reach the broad audience of car drivers at a low cost. Placing these at busy junctions will complement TV and print advertising.

Internet plays an important role, direct mail will be sent as email where possible and enable buyers to purchase the Prius online. A Prius specific micro-site will offer all information e-brochures for download. All adverts should bear the Prius web address to make it easy for users to find.

Direct mail and sales promotion have been discussed above.

We will not use cinema because a low usage amongst our target has been detected and the extra expenses are not likely to pay off. Directories are not suitable for the image of the Prius. Regional press will not be considered because traditionally these media are

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used by local dealers. Radio advertising might be useful but we feel that radio will not be able to exert the necessary impact to convince; the Prius should be visible to make sure the audience understands that it is a modern and full car.

TIMING AND BUDGETS:

It is important to notice that marketing communications should start before the product is actually launched, for launch activities to unfold their full potential. Even long before that all departments that contribute to the product and communication will have to meet regularly to tune into an integrated strategy.

Pre-Launch: The setup of a micro-site round the Prius will happen once the Prius has been shown on exhibitions. Direct mail will be sent before and after the launch. PR will be provided scarcely before and fully after Launch. Advertising and will set in once the product is available. TV adverts will start in and flow into a ‘awareness pattern’ after six months to maintain awareness for a product that has a long purchase cycle and a long decision time.

Considering the small target group of the Prius and the small projected sales figures a budget of 9million over three years seems appropriate, however we would recommend reallocating the budget.

4m should be spent in the first year, 3m in the second and 2m in the third. That way the launch period communications can be intensified. Three years are also likely to correspond to the approximate life of this car model since car manufacturer have increased their model output to keep demand high.

POST CAMPAIGN TESTING:

Post-testing (during and after campaign) is important because it helps to evaluate the actual success of the campaign (was the money worth spending, were objective achieved) and feedback can also help when planning future campaigns. Post-testing will be

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conducted by an agency that specializes in conducting surveys to determine the public’s reaction to the communications. These tests should include the recognition/ awareness of adverts, recall rate and how it has influenced people’s feelings/ attitude. Was the target group reached and was the right message received? These results can then be compared with results measured before the campaign launch to state the impact the campaign had. Budget has to be allocated for this.

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