Toyota

April 2003

Toyota Prius; Marketing Communications Plan

Prepared by ANDiDAS.COM

Contents:

Executive Summary 3

Introduction 3

The Automobile Market 4

Figure 1: UK new Car Market by Volume and Value, 1997-2001 4

Figure 2: Leading Suppliers of Cars to the UK Market, 2001 5

Figure 3: Main Advertising Expenditure on Car Brands, 2001 5

Prius Target Market 6

Demographic 6

Psychographic 6

Geographic 7

Toyota 8

SWOT Analysis 8

Campaign Objectives 10

Creative Strategy 11

Communications Mix 12

Recommended Campaign 13

Media Strategy 13

Timing and Budgets 14

Figure 4: Communications Schedule Year One 15

Figure 5: Communications Schedule Year Two & Three 15

Post Campaign Testing 17

Summary 17

Appendix 18

Attitudes of Consumers Towards Green Cars (% of respondents),2002 18

Media uses Advantages and Disadvantages 19

Brad: Advertising Costings

Bibliography & References 20

Executive Summary

Full service agency "Oakly & Oakley" has been asked to prepare a three-year communications plan for the Toyota Prius, which is to be launched in the UK. Market analysis identified the target market, which consists of two groups: private and corporate buyers. Next to the demographic profile, three different psychographic profiles amongst the private buyer and their media usage have been identified. Consequently a communications strategy that makes use of these media has been created. The strategy will use PR, Advertising, direct mail and Personal Selling. TV, Print, Outdoor and the Internet will be the main media. The Creative strategy is designed to emphasize the unique selling points of the Prius and weaken the target markets objections. The budget has been allocated, however it is suggested to change the allocation from Ј3m yearly to Ј4m, Ј3m, Ј2m in the course of the three years. The majority of the budget will be spent on TV and print advertising.

Introduction

Our full service agency, "Oakly & Oakley" has been asked to develop an integrated three year Communications Plan for Toyota (GB) PLC. The plan will focus on the launch of the Prius in the UK. The budget has been set at Ј9 million (Ј3m per annum).

Traditionally single car dealers are responsible for local advertising and the promotion of their special offers. However, most manufacturers create and support national, brand image and advertising campaigns. This campaign is designed for the national UK market.

The Prius has successfully been launched in Japan and the USA, and now its introduction to the European market is planned. Despite the great success of the Prius in Japan and the USA, a careful sales target has been set for Europe, considering differences in taste and culture.

The Automobile Market

Figures and facts taken from Key Note, 2002 and Competition Commission report, 1991

The Prius falls into the car sector, which is defined as follows (KeyNote, 2002): The car sector of the motor industry covers private cars of all descriptions and engine capacities, regardless the type of fuel, providing that they conform to all the regulations for road use and are designed specifically to carry people.

The UK car market is mature and reached a new peak in terms of value and volume of new cars sold in 2001 (see graph). Car purchases are favoured by a sound UK economy, rising disposable incomes, low cost of borrowing (low interest rates) and the introduction of a new type of license plate. However during the 90s the market growth slowed down considerably due to publicity about the much higher prices of cars in the UK compared with the rest of the EU. (Monopolies and Mergers Commission report, 1992). Manufacturers and their distributors started to officially reduce their selling prices in 2001.

The UK car market is almost totally dominated by foreign-owned groups. About 40 manufacturers offer cars, 16 of these have a market share of more than 1%. Ford leads the market with 21%. The share of Japanese manufacturers is likely to increase after the lift of the EU import quotas in 2000.

The car market is essentially divided between private buyers (consumers) and the fleet buyers (customers), which specialise in providing a range of company and general hire cars for their clients.

Private buyers will buy their cars from franchised dealers who exclusively sell one brand of car and therefore the manufacturer exercises great control over dealers since he can remove franchise should it not perform to the manufacturer's expectations. In return for the franchise, a dealer must offer a good aftercare service, to honour the warranties (typically 3 years) that are guaranteed be the manufacturer. (Key Note, 2002)

Due to the increasing competitiveness in the fleet market and the demands for price reductions from fleet buyers this segment has become less lucrative for car manufacturers despite the high volume they absorb. Therefore the private car market gained in importance.

Car manufacturers make extensive use of advertising to constantly