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2003

ToyotaM

atrix

IMC

Cam

paign

Brent

Lass

ere

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Executiv

eSummary

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Purpo

se

Launcha

nationalcampaigntoincreasebrandawarenessand

improvebrandimagefortheToyotaMatrix.Thisc

ampaignwillrepo-

sitionthe

MatrixandhelpToyotaachieveitssalesgoal

Campaign

Focus

Thecampaignwillfocusontheyouthmarketandp

resenttheMatrix

asanUrb

anUtilityVehicle-combiningstyleandfunctionalityatan

affordableprice.Thecampaginwillbeintunewith

Toyotasimage-

makeovereffortsandisbaseduponresearchsupo

ortedstrategy

Creat

ive

Emp

has

is

Matrixad

vertisingwillspeaktotheyoungintheirownlanguage.

Productbenefitswillbeconveyedusinguniquewo

rdsthatattract

anddescribeatthesametime.Thesetagwordsw

ithhighrecall

valuewill

betheheartofallcreativeexecutions

Me

diaPlacement

Televesion,printandoutdoormediawillbeusedinharmony

tocre-

atethedesiredimpactwithoutgoingover-budget.Billboards

will

featureteaseradsa

ndprovidesupporttoTV&print.Mewd

iaplan-

ningfocusesonreachingtherightaudiencethroughoptimum

utiliza-

tionofavailablefunds

Integrate

dM

arketing

Commun

icat

ion

s

Promotionsandeventsaretargetedattheyoungestgroupin

thetar-

getaudienceandwilltakeplaceatUniversityCampuses.Publicrela-

tionswilluseatwoprongedapproachworkingwithMatrixow

ners

andinsurancecomp

anies.

Resu

lts

Resultswillbetrack

edtoguagethesuccessofthecampainin

achievingitsstatedpurpose.Executionswillbepre-testedan

dpost-

testedregularly.Th

ecampaignwillrespondtofeedbackand

beflex-

ibleinmakinganynecessarychanges

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Introduc

tion

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TheToyotaMa

trixisclassifiedasasubcompact

cross-overutilityvehicle

(CUV).ItwaslaunchedinFebruary,2002.Itcomb

inesuniquestyling,prac-

ticalityandaffordabilityinonepackage.TheMatrixisproducedinthreedif-

ferentversions:Matrix,MatrixXR,andtheMatrix

XRS.Theprojectedvol-

umetobeprod

ucedis70,000units.Thesubcomp

actvehiclemarketisthe

secondlargestofallvehicleclasses.Newcarsalesamounttotwomilliona

yearinthissegm

ent.Therecentgrowthofthenew

subcompactbodystyles

hassparkednew

interestinthesegment.TheCUV

hasfeaturesofdifferent

classesofvehic

lesmeldedintoone.Herearesom

ebasicfeaturesyoumay

findinanyCUV

.

Atraction

orientedsystemfor4WD

Highersta

nce

Enclosedcargocarryingcapacity

Significanttowingcapacity

Sportysty

ling

Stablerug

gedplatform

Themarketisintheverybeginningofitsgrowthst

age,salesareexpected

toincreasequicklyforbrandsinthiscategory.Toyotahasaweakposition

intheyouthsegmentoftheconsumermarket.Therefore,itwishestotarget

itslatestCUVofferingtoward20-30yearoldcons

umers.Asofnow,aware-

nessaboutthe

Matrixislowinthedesiredmarket.Theadvertisingchal-

lengeistochan

gethescenarioinfavorofToyotabycreatingayouthorient-

edimageandp

resentingtheconsumerbenefitsin

aninnovativecampaign.

Thefirststepinthisprocessistounderstandthet

argetaudiencefroma

productperspe

ctive.

SubcompactMarketShare

Corolla

Matrix

Civic S

entra

Protg

Escort

Fo

cus

SaturnSedan

Cavalier

Sunbird

Vibe

Accent

Elantra

Lancer

Golf

Beetle

Neon

PTCruiser

Spectra

Echo

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MarketResearch

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AccordingtotheAm

ericanDemographics,Inc.(ADI)themajorityof

GenXbuyers(born

between1965-1976)are27to36yearsoldand

theGenYbuyers(b

ornbetween1977-1994)are26year

soldorless.

Thishasbeenacom

monandusefulmarketingsegmentation.The

age-wisedivision,pr

esumably,isnotrigidandonlyindic

ative.Assuch,

thegiventargetmarketforToyotaMatrix(20-30yrolds

)overlapstwo

segments-GenX&

GenY.Evenifwedisregardthisp

opulardemo-

graphicclassification,thesocio-economicdifferencesbetweena

20yearoldand30yearoldareapparent.While20-24

yearoldsare

likelytobeincollege,25-30yearoldsarelikelytobeeq

uippedwith

collegediplomas,startingacareerandafamily.Inesse

nce,weare

dealingwithtwodifferentsetsofbuyershere.Nowlet'sreviewtheir

profilesonebyone.

In2001,GenXbuye

rscontrolledanestimatedspendingpowerof

$730billionaccordingtoADIreports.AsperChrysler'sreported

analysis,theirpopulationisabout38million.Theaverageincomeof

thisgroupiscloseto$50,000today.Theiraverageannu

alexpendi-

turesareestimated

tobe$40,000approximately.Theyarealso

likelytobehomeow

ners.Almosthalfofthempaymortgage.More

thanhalfofthissegmentismarriedandhasatleastone

child.About

62%ofthemhavehadcollegeexperience.Nowonder,

GenXisan

alluringsegmentfor

marketers.

In2002,GenYpopulationwasconsideredtobe75m

illionby

Newsweek.Thou

ghthissegmentistwicethesizeof

GenX,halfof

thiscohortistooyoungtoeventodrive,letalonebuy

acar.The

spendingpowero

fthisgroupisestimatedtobe$275

billionayear.

About70%ofthisgrouphavehadexposuretocolleg

e.AsperJD

Power'sreported

research,GenYhouseholdswillexceedGenX

householdsinadecade.By2020,GenYisexpected

toownhalfthe

carsintheU.S.

Concludingintermsofprofitability,GenXisthepresentandGenYis

thefuture.Neith

ercanbeignored.Thusitmakessensetotarget

bothgroups.Ino

rdertodoso,wemustunderstand

theirdifferent

preferencesandintegratetheminamarketingapproachwhich

appealstoboth..

InanefforttounderstandGenX&GenYasconsum

ers,thefollowing

insightsmaybehelpful.

GenX-Buyersinthismarketaredescribedas"pragmatists"by

KiplingerBusinessForecasts."Irony"alongwith"obje

ctiveinforma-

tion"seemstowo

rkwiththemasperADIsources.H

owever,they

don'tmind"funan

dvariety"accordingtoToyota'srep

ortedresearch.

Theyarereceptiv

etomarketingviatraditionalmedia.

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GenY-Buyersinth

ismarketaremore"styleconscious

"accordingto

JDPower.Theyareassociatedwitha"zealousindividu

ality"reports

theNewYorkTimesandliketoflaunttheirpersonalsty

le.According

toAdweeksources,

this"crowdisskeptical".Thissegmentisresistant

totraditionalmedia

marketing.

Thenextstepistoplananddesignacampaignwhichcanpleaseboth

thesesegments.Be

foredoingso,twoimportantquestionsshouldbe

asked.First,canthe

productsupportsuchacampaign?

Inthiscase,

theanswerisyes.T

oyotaMatrixcombinesthefunction

alityofan

SUVandthelookso

fasportscaratthepriceofaregularsedan.In

otherwords,itoffer

sbothstyle(thinkGenY)andsubstance(think

GenX).Thesecond

questionis-aren'twetryingtoservetwomas-

tershere?Theansw

er,again,isyes.Thereforeitisimportantto

decidewhocomesf

irst.Whiletheyouthmarketasaw

holeshares

somesimilarities,italsopossessessignificantdifference

sasseenfrom

aGenXandGenY

perspective.

Researchsupportsthetreatmentofthe25-30yearold

group(close

to/partofGenX)astheprimaryaudienceandthe20-2

4yearold

group(closeto/partofGenY)asthesecondaryaudien

ce.Thereare

twomainreasonsfo

rthisproposedapproach.First,ismarketreality.

Mostoftheyoungerbuyerspreferusedcars/trucks.A

ccordingto

ProvidataAutomotive'sreportedresearch,newsports

cars,sport-

utilitiesandactivity

vehiclesarebeyondthebudgetfor

mostyoung

buyersdespiteth

eirappealtothisdemographicsegm

ent.Aprice

tagof$15,000-20

,000isoutofthereachofmostyoungsters.The

higherinsurancecostsaddtotheeconomicbarriers.

Second,Toyota

alreadyhasavehicle(Scion)targetedattheyoungestcarbuyerseg-

ment.

Additionally,Toyo

taMatrix'sclosestcompetitor,thePontiacVibeis

goingexclusivelyafterGenY.Bothvehiclesareprac

ticallyidentical-

aresultofcollaborationbetweenGMandToyota.Awidertarget

rangealongwithbrandimagewillhelpindifferentiationwhichis

importantforthe

"fraternaltwins".

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Furthermore,ToyotaMatrixhasasalesgoalof70,000unitsannually.

ConsideringthattheGenYmarketisestimatedat700,000unitsin

termsofpotentialsales(J.D.Power&Associates),atargetof10%

seemsreasonable.

However,certainfactsareworthbeingconsid-

ered.Amongthele

adersintheCross-oversegment,C

hrysler'sPT

Cruisersells87,000

unitsapproximately.Itmaybearguedthatthe

PTCruiserisnottargetedatGenYinparticularandthusthefigures

arenotcomparable.AmongthetopsellersintheGenYmarket,

Toyotaisconspicuousbyitsabsence.WhilethissuggeststhatToyota

shouldfocusonthis

market,italsomeansadifficultpenetration

process.However,

thesalesgoaldisregardsthisreality

andexceeds

thatoftheVibe(60,000units)andsurpassesthesales

ofSaturn

(69,500sedansapproximately).Itshouldbenotedthat

Pontiacand

Saturnareamongth

etopfivebrandnamesintheGenYmarket

accordingtoresearchbyJ.D.PowerandAssociates.F

ocusinginward

andreviewingToyota'sownfiguresdoesnothelpeither.In2002,

about31,500Matrix

weresold.Itshouldberememberedthatthe

Matrixwasnotintro

duceduntilFebruaryof2002.Takingthesefacts

intoconsideration,f

ivemonthsofsaleswereeithernot

included

becausetheproduc

twasnotonthemarketorbecause

saleshadyet

tobemade.InthemonthofJuly2002,about6,400un

itsweresold.

Basedonthe2002calendarfigureandthefigurefromthemonthof

July,Toyotashould

expecttosellanestimated50,000

to53,000

Matrix2003models

.Giventhisscenario,asalesgoalo

f70,000units

maybeunrealisticif

itreliesheavilyonGenYbuyers.

Foralloftheabovereasons,itisadvisabletoviewthe25-30yearolds

astheprimaryaudienceandthe20-24yearoldsasthesecondary

audience.

Strengths

Weakn

esses

NewProduct

TheToyotaName

Styling&Utility

CompetitiveBase

Price

OptionalFeatures

(available4WD&17

wheels

Entrytiming

FuelEconomy

ToyotasYouthOrientedImageMakeover

Pricepremiumforop

tionalfeatures

Weakpositioninthe

youthmarket

Heterogeneoustarge

taudience

Economicdifficultyoftheconsumerin

makingnewvehiclepurchases

Opportunities

Thre

ats

GrowingYouthSe

gment

Productabilitytoa

ttactyoungerbuyers

Freedomincreatingadesiredimage

Trendtowardsma

llsportutilityvehicles

Risingfuelcosts

Preferenceformore

affordableused

cars/trucksamoungy

oungerbuyers

Launchofmanynew

cross-overutility

vehicles

DifferentiationissuewiththeVibe

Toomuchrelianceonyoungbuyers

mayhampersalesgo

alachievement

SWOTRepresentation

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MarketingStrategy

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Obje

ctives

PenetrateMarket

Achievesalesgoalof70,000units

TargetMar

ket

Youngbuyersbetween20-30yearsof

age

Emphasisonolderconsumersinthegroup

Position

ing

YouthOriented

Com

binationofstyleandsubstance

atan

affordableprice

Prod

uct

Line

FocusondifferentiationfromtheVibe

Con

tinueinnovatingtoimprovevalue

prop

osition

PriceReviewpricingintermsofoptionalfeatures

Maintaincompetitivepricing

Distr

ibution

Outlets

Plan

attractiveincentivesfordealerstopush

prod

uctsales

Con

sidertie-upswithprivatedistributors

Sa

les

Force

Keepitonparwithcompetition

Reviewrewardprogramsregularly

Serv

ice

Maintainwidelyavailableand

quickservice

Focusoncustomersatisfactio

n

Advert

ising

Developnewanewadvertisingcampaign

thatsupportspositioningstrategyandappeals

tothetargetmarket

Sa

les

Promotion

Implementinnovativepromotionprograms

Letpromotionsupportoverallcampaign

Researchan

dDeve

lopm

ent

Improveproductcomponent

quality

Keepcostsataminimum

Mar

keting

Research

Monitorconsumertrendsand

satisfaction

TrackCompetition

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AdvertisingStrategy

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Adv

ert

ising

Strategy

Objectives

Increaseawarenessby5%

Createyouthorientedbrandimage

Advertisingwillhumorouslyandsubtlycommunicatetourbanyoungadultsintheagegroupof20-30yrs-sin-

gle/

newlyweddedwithorwithoutchildren,equippedwith/pursuingacollegedegree,startingacareer/family

who

aresavvyconsumerswithactivelif

estyles,intheprocessofestablishingidentityandreceptivetonew

idea

sthatToyotaMatrixprovidesanun

beatablecombinationofstyleandsubstance

Su

pportwillbethefactthattheToyo

taMatrixisacross-overutilityvehicleofferingthefunctionalityofan

SUV

,thestyle,imageandperformance

ofasportscarandtheaffordability

ofsubcompactsedan.

Tonewillbeconveyingthenoveltyof

theToyotaMatrix.

BrandCharacteristhattheToyotaM

atrixisanUrban-UtilityVehicle

AdvertisingThemewillreflectthecre

ativecorruptionsoflanguageusedbyyoungadultstoday;youthfuland

atte

ntiongrabbingslangwordsspeciallycoinedfortheToyotaMatrixwillb

eusedtoconveyproductbenefits;

sinc

etheMatrixislikenocaranyonehaseverseenbefore,thiscampaignw

illdescribeitwithwordsnooneha

s

everheardbefore.

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CreativeExecutions

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