Fall 2003
MEDIA PLAN ASSIGNMENT
Toyota Motor Sales USA/ Toyota Corolla
Company and Product Background
Toyota Motor Sales is a US division of a Japanese automaker, Toyota, that markets automobiles worldwide. TMS market many lines of autos in the US including Toyota Camry, Corolla, Avalon, Rav4, Sequoia, and so on just to name a few.
TMS spent over $500 million last year in the US to advertise its brands. Their marketing efforts have intensified in the recent past both in diversity and $ expenditures. Their incremental marketing efforts were not exclusive to advertising, encompassing public relations, direct marketing, promotions, and Internet. TMS total sales has increased more than 5% in the US last year. TMS management, witnessing sales increases from the intensive marketing and advertising efforts, believes such extensive efforts have been paying off and hopes to continue that tradition in the future.
Toyota has been on something of a product tear recently, adding trucks, performance sedans, SUVs, luxury roadsters and what-have-you's to markets it previously didn't compete in, under both the Toyota and upscale Lexus badges. Particularly, Toyota has made considerable efforts to attract younger buyers, with the introduction of a new Celica sports car, Echo small car and MR2 Spyder sports car The company has recently redesigned the Corolla with the younger target in mind.
The redesigned Corollas have the look from the sporty to the sophisticated. There are currently three models: the CE, the S, and the LE. The Corolla CE is what Toyota calls the Smart Corolla. It is an affordable line with some important safety features like daytime running lights, driver and front passenger airbags, and so on. The Corolla S is the sport Toyota. It has sleek side side roker panels, a sport speedometer, and so on. The Corolla LE is the sophisticated model. The LE is the upscale model with wood-grain-style interior trim, remte keyless entry with lock, etc. Compared to the total TMS sales, Corolla has enjoyed only 1.3 percent increase in sales last year.
Toyota has earned itself a very reliable name in the automobile category. Their products are durable, dependable, steadfast, and at the same time, they managed to be sleek, stylish, and cost-efficient. The Toyota Corolla has a powerful engine, gets great gas mileage, and has many special safety features. One thing to note is that Corolla should not be in competition with Matrix which looks radically different from the Corolla, but is based on the same platform.
Industry and Competition
The competition in the automobile industry has intensified over the years. The industry is characterized by downward pressure on prices, upward pressure on marketing spending from over-capacity, competitive cost reduction, increase in near-new (off-lease) vehicles, cost reduction efforts refocused on distribution channel.
Toyota Corolla is faced with competition from automakers of both domestic and import cars. The Corolla should compete for buyers who are also considering the Ford Escort, the Honda Civic, the Nissan Sentra, and the Chevy Cavalier.
In 2001, Toyota Corolla held a 9.3% share of the compact car market, with Chevy Cavalier (12.4%) leading the category, followed by Honda Civic (12.2%) and Ford Escot (9.3%). By trying Market Share Reporter or Dow Jones in the Lexis/Nexis, you may learn about the current market share for the above brands in the competitive set for Toyota Matrix.
A packet of information, containing MRI and LNA/Media Watch data, will also be distributed in class ) as soon as I obtain more recent data. You will use the LNA data to analyze and understand competitive media strategies.
Marketing Plans and Objectives
The major goals of the TMS marketing plan for Corolla is to
· To position Corolla as the dependable, stylish, and smart vehicle
· To maintain the current consumers and expand the target to include the young
· To increase the share of the compact car market by two percent by the end of the campaign year
· To boost Toyota Corolla US sales by the end of the campaign year.
Other marketing key elements may be summarized as:
· every marketing communications effort consistent with brand identity
· advertising effort front loaded to build sales momentum
· brand communications on air all year to build the brand nationally (making visible Corolla benefits)
· resources concentrated in top markets
· use of innovative promotions and direct marketing programs
Consumer Information and Advertising Strategy
The TMS management believes that the advertising campaign should be directed not only at the current customers of theirs but at the young, prospective buyers.
(For further information on consumer demography, refer to MRI data – it will be on reserve as soon as the recent data become available)
Also, observe their advertising campaign to learn about the creative strategy and requirements.
Special Promotion
You are required to come up with consumer promotion ideas and strategies. Make sure you incorporate them through your media efforts.
Advertising Budget & Campaign Period
The advertising media appropriation for Toyota Corolla is $ 40million for the one-year period, beginning January 1, 2004. These funds are solely for consumer advertising media expenditures. Other expenses that TMS will incur in the campaign include such things as production and talent expenses, but these are not charged to the media budget. The cost of promotion itself (e.g., incentives and rebates) is NOT part of your budget, but any media used to carry the promotional offers are to be budgeted. [NOTE: Your media plan is exclusively for Corolla; all of your objectives, and the $40 million budget, are for this one brand only; the only consideration of other Toyota brands is that you do not take away market share from them. Also, Corolla should avoid direct competition with other Toyota brands
Trade advertising and other promotion strategies can be suggested, but you are not to budget for trade promotion and advertising, or the like. (i.e., $40 million is solely for consumer media, both traditional and non-traditional media).
General Direction and Plan Instructions
One of your first tasks in developing this media plan for Toyota Corolla will be to do secondary library research for further information on the industry/competition, the company, the product, and the consumer (do Internet, Lexus/Nexus library search in the library). You also should carefully assess the retail situation and dig out any helpful information by visiting dealerships that carry Corolla as well as those that carry the competitors’ cars.
In the development of your media plan, you probably will want to refer to “Media Plan Checklist” (GS 28) for general instruction. Refer also to GS 25, 26 & 27 for writing media objectives, planning media strategy, and proving that your plan delivers the objectives.
Your assignment includes not only making decisions but also gathering and analyzing any additional, relevant data (about the industry, competition, the consumer, etc.). Also, unlike in the intro media class, you are required to make tactical decisions, run the computer analysis and show flowchart summarizing the cost and scheduling of ads.
This report is being made to the TMS marketing and advertising directors and the brand manager of Accent. As such, it must be professionally presented. Be careful about detail and, where applicable, indicate the sources of information. Where important facts are not available to you from secondary research, you may make assumptions as long as they are realistic (by making an assumption you are letting the reader know that a particular piece of information is important, even though you don't have the precise facts!). Make sure you include a Table of Contents and Executive Summary, followed by Introduction/Overview.
The report must be presented in a logical and organized manner; it must be typed (double-space, 12 points type, ....except EXECUTIVE SUMMARY can be single-spaced); use tables, charts, and graphs where useful for effective communication. An exact "length" for the plan cannot be specified, but a typical media plan (of this sort) likely would be 30- 40 pages, including text, tables, figures, and computer output.
Please turn in three hard copies (one for me; two for Agency staff) of your plan as well as a computer diskette containing your plan file.
GOOD LUCK!!!
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Com 452, Dr. Ju-Pak