OUR PRODUCT
$ 24, 200
Four model levels available
51/48 est. mpg
THE MACRO ENVIRONMENT
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Demographics
Economic trends
Natural Environment
Social Aspects
Technology
DEMOGRAPHICS
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The trend of Population Aging – due to increasing life expectancy and
fertility below replacement levels
• Male to female ratio 99:100
Median age by gender, Statistics Canada
• Working age population
in Canada is 68% of total
population
• Over age 80 is 4% of
total population
ECONOMY
• Consumers want to consume.
• Economic meltdown over the last
decade
-Consumers buying luxury goods
• Costs to the consumer
NATURAL ENVIRONMENT
• Declining natural resources
• Air pollution
• Emissions
SOCIAL ASPECTS
Becoming Responsible consumers
• New ways of creating renewable
energy as a consumer.
• Long term investments that will help
you in the future.
TECHNOLOGY
• Marketing of products online
-Consumers are able to shop from
home
• Cutting down on search costs
• Helping the environment
• The information age & technological
revolution
ANTICIPATED MACRO-ENVIRONMENTAL
CHANGES
Technology: Nissan, competing with our direct competitors.
Natural environment: further depletion of natural resources
Demographics: growing disposable income of women
Social: Social pressure and desire to be a responsible consumer will
continue to grow
THE TARGET MARKET
Strategic
Planning
Total Market
Market
Segmentation
Target Market
THE STRATEGIC PLAN
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A long run plan, revealing company
objectives
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Survival and growth
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Key for all subsequent market planning
The goal: To create value for customers and
build profitable customer relationships
THE TOTAL MARKET
Who are Canadian Car drivers?
Number of Licensed drivers by
gender and by age
The Income of Canadians
MARKET SEGMENTATION
Different segments represent different types of
buyers
Needs
Different products
presented through different
marketing programs
behaviors
Characteristics
The goal: To locate the segment of the market that will
respond the same to marketing efforts, and have a distinct
desire to own a Toyota Prius
THE TARGET MARKET
Where Toyota can
generate the most
customer value and
sustain it over a long
period of time
(1) Harris Interactive Study: Familiarity,
and the likelihood of purchase
• 23% familiar
• 27% consideration
• 84% plugging in vs. fueling up
(2) Scarborough Research:
Current trends amongst
Hybrid owners
• $100 000 or more
• Older
• Educated
• Liberal
• Active
(3) Mindset Media: Psychological
profile of Hybrid Drivers
• Creative – inventive,
imaginative, emotionally
sensitive, intellectually curious
• Proud advocates and leaders
• Open minded, spontaneous
TARGET MARKET
For the sale of the 2014 Prius, Toyota has chosen
to target Wealthy, Educated and Creative people
Note: Toyota will be careful to avoid the green
marketing myopia – the myopic focus on the
products ‘greenness’ over broader expectations
of consumers
THE MARKETING STRATEGY - PRODUCT
• Type of good
• Tangible good
• Strengths
• Fuel efficient
• Weaknesses
• Lack of power
• Style
THE MARKETING STRATEGY – PRODUCT
CONTINUED
Brand name
 Prius
Brand image
 High tech & Environmentally
friendly
BCG Analysis: Star
Brand equity
 Commonly known product vs.
competitors
Augmented product
 Core product where additions products or services to
generate more revenue
THE MARKETING STRATEGY- PRICE
Pricing objectives –
Product Mix
• Prius and Prius C,
Prius V, Prius
Plugin
Prius
Prius
Plugin
Pricing Strategy
•Penetration
Prius
C
Prius
V
THE MARKETING STRATEGY- PROMOTION
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CREATE AWARENESS AND PREFERENCE
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GEAR PROMOTION TO THE WEALTHY, EDUCATED
AND CREATIVE
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INFORMATION SUCH AS PRODUCT,
CONSTRUCTION, FEATURES, BENEFITS AND
DESIGN.
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KEEPING TARGET MARKET INFORMED
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ALLOW FOR TEST DRIVES
THE MARKETING STRATEGY- PROMOTION
• Incentives:
 Company –0% financing for 2014 models, buy back on
older models.
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Older models: $1500 cash bonus and between 2.99% and
5.99% finance rate depending on hybrid model
Government - $1000 tax credit
THE MARKETING STRATEGY- PROMOTION
 Television commercials
 Bill Boards
 Printed ads
 Newspapers
 Buzz market – New features/benefits via social
media
 Focus on the pull strategy (high advertising which
will create demand for the hybrid car)
 Promotional budget – objective and task method
 -Benefits for consumer/environment
THE MARKETING STRATEGY - PLACE
 Assembly of car in Japan
 Shipped to British Columbia and transported to
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5 warehouses throughout Canada.
Vancouver, Winnipeg, Toronto, Montreal,
Moncton.
Car dealerships purchase cars from
warehouses in designated area.
Computer systems monitor inventories,
estimates of cars predicted to sell
Use integrated logistic management
(teamwork essential)
THANK YOU
Questions?