Jeff DittmanChristy HuangKatie IvesterDavid Ugas

Introduction

Eco-Green Business Model Logic

Target Market Segmentation/Positioning Strategy

Market Direction Strategy

Marketing Mix

Performance Measurement Implementation and

Control

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

Segmentation&Positioning

TARGET MARKET

Income Average Income

Age25-40 Years Old

EducationSome Education

Total Market

High Income Low Income

25-40

Average Income

Some College

40+16-24

No College -College Graduate +

Target Market

SEGMENTATION CHART

  Gen Pop LOHASNon-

LOHAS

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%

 

Usage Growth Rates of Select Environmentally-Friendly Products(% change in usage for each product by consumer segment, 2004-2005)

Toyota will target to many different factors such as:

Reliable ProductEconomical ProductReasonable PriceAppealing Image

DIFFERENTIATED MARKETING

Market

Direction

Strategy

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

Employees InvolvementSurveysCustomer CareCommunity InvolvementEducational Programs

Resources Allocation

Marketing Direction Objectives (Cont.)

Marketing Direction Objectiveshttp://www.toyotawhynot.com/#/home

Marketing Direction ObjectivesCurrent 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.

Product

Credit Delivery

After SalesService

Intangible Associations

Warranty

Basic – transporting people where they need to go

Expected – Toyota brand, hybrid technology, pickup, recycled parts

Augmented – improved air quality, just-in-time delivery, after purchase service

Potential – vehicle dashboard that shows how much CO2 emissions reduced

Brand Name

Packaging

FeaturesStyling

Quality

TACOMA HYBRID CONCEPT

The Essent

ial Benefi

t

Place, Place, Channel,

Channel, Logistics Logistics StrategyStrategy

Channel StrategyChannel Strategy - All the decisions involved in getting the right product to the target market.

Channel Member:Three Manufacturing Plants:

Toyota Motor Manufacturing (TMM) San Antonio (Texas); TMM Tupelo (Mississippi); TMM Georgetown (Kentucky).

One Distribution Center:

Toyota Motor Sales, USA

CHANNEL STRATEGY

Toyota Manufacturing Plant

Toyota Motor Sales USA

Dealers

Consumer

Supplier CustomerProducer Channel

Value Added

Inbound Outbound

Save energy for storing excess inventory;

Use least impact transportation for delivery

Environmentally friendly product base on green procurement.

Reduce Waste & Improve Efficiency at our car manufacturing plants

Eco-Driving Program

VALUE CHAIN

Possible campaigns:Manufacturing Location

Wastewater treatment

Conserve energy

Build solar panel

PRODUCT LIFE CYCLEPRODUCT 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

Implement

ation

&

Control

Tacoma Hybrid Market and Product Sales ForecastBakersfield Test Market

50%

55%

61%

67%

73%

200220

242

266

293

100121

146

177

214

0

100

200

300

400

500

2010 2011 2012 2013 2014

Year

Nu

mb

er o

f Tr

uck

s S

old

0%

25%

50%

75%

100%

% M

arke

t S

har

e

Tacoma Market Share (%) Market Sales Projection Tacoma Sales

Bakersfield Test Market

Corporate Objectives Marketing Metrics Target Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Marketing

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%

Financial

Increase Sales Revenue % Increase in Revenue ($/Yr) 10%

Break Even Point NPV Project =0 (Yrs) 5

SocietalReduce gasoline consumption Gals Gas Saved / Yr / Vehicle 250

Community Involvement Educational Programs Yes/No

< 80%

80-100%

> 100%

Tacoma Hybrid - Marketing Dashboard for Annual Control

Monthly Performance Metrics (% of target)

THE END!!THE END!!