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!!