Slide 1Situational AnalysisSlide 3Slide 4Toyota Mission & VisionSlide 6Product Life Cycle Product LifeBrand ConceptsMarketing StrategyPricePromotionPromotion-DealershipCross PromotionsWeb Based PromotionsCustomer RelationshipsSlide 16Place - DealershipExpansion PlansHolistic, Ethical and Social ResponsibilityAdam Abel, Toni Crosby,Christina Ozaeta & Melissa Hanssen Adam Abel, Toni Crosby,Christina Ozaeta & Melissa HanssenSituational Analysis •Environmental Trends–Shaping target markets•Alternative Fuels, Safety, Technology, Behavioral Trends–Determining Strategic Moves•Globalization, economies of scale, continuous improvement of suppliers•Rapid improvement of competition•MergersStrengths WeaknessesOpportunitiesRising Fuels Prices – Untapped Market Niche for Quality Fuel Efficient CarsInnovation – Develop Alternative Fuel CarsRapid Expansion – Quality Control Issues Assimilate Toyota Culture in US PlantsThreatsToyota has 11 US plants but is viewed as a foreign made car.Shift in Demand – Nostalgic American Made Muscle Cars.Situational Analysis •Environmental Trends–Framing Competitive Patterns•Buyer’s bargaining power•Segment rivalry•New entrants (China)Toyota Mission & VisionOur vision is to be the auto industry leader through innovation and production of personal transportation vehicles designed for quality, dependability, and broad market appeal.Product LevelsCore Benefit – TransportationBasic Product – Engine, Body, TiresExpected Product – FunctionAugmented Product – Reputation for Quality, Reliability, DependabilityPotential Products – Hybrids and Alternative Fuels, Personal Flight TransportationProduct Life Cycle Product Life•Sales are rising rapidly•Average customer costs•Profits are rising•Customers are early adopters•Number of competitors is growing•Maximizing market share•Building extensive distribution channelsBrand Concepts Merchandise RelationalEgoHigh QualityPrestigeUpscale LuxuryMarketing Strategy PRICEPRESTIGEQuality remains impeccable and constant throughout brandsPrice *Product-Quality Leadership**Price Sensitivity & Elasticity**Target Costing*High Perceived Value + Affordable PricesAttract More ClientPromotion *Value**Quality**Social Responsibility*Promotion-Dealership •Scion–Wireless Internet Connections–Live DJ•Toyota–Inflatable Toys–Batting Cages–Video Games•Lexus–Previews of Innovative Products–Putting GreensCross Promotions •Scion-Apple–Free iPod with Exclusive Accessories •Toyota-Disneyland–Free Tickets to Disneyland•Lexus-Carnival Cruise Lines–Vacation PackagesWeb Based Promotions •Scion–SiSpace, personalized information spaces for Scion customers to showcase their cars.•Toyota- Blog sites for moms and kids, movie ratings, recipes, appropriate online games for kids.•Lexus–Exclusive websites featuring news & information, also sneak peaks about Toyota’s new market offerings.Customer Relationships •Loyalty–Once a Toyota customer, always a Toyota customer–A vehicle for every customer, in every walk of life•Repeat Purchases-Incentive programs through trade-ins.- Attractive options for upgrades to other Toyota brands via the S T L (Scion, Toyota, Lexus) Purchase Path •Value – CPV and TCV– Image/Psychic, Personal/Energy, Services/Time, Product/MonetaryCustomer Relationships •Dealership Relationships–Training and standardization for customer relationship development in all dealerships•Service Relationships - Extensive training and standardization to transform the service experience SalesExperienceServicePlace - Dealership *Selective Distribution**Terms & Responsibilities**Dealership Applicants*Expansion Plans •Become Competitive in Markets Untapped–Latin America–New Models–Dealerships–Direct Investment•Penetrate Market with Toyota Quality and InnovationHolistic, Ethical and Social Responsibility •Lessen dependence on oil•Five Year Environmental Action Plans•Think Green!Toyota’s goal is to “become the best environmental company in the