Toyota Camry Hybrid

Synchronic CommunicationsGroup 5:

Emily SibbingLaura MadaryLauren Wolf

Toyota

The Age of Sage

Product: Toyota Camry Hybrid

History

• Toyota Motor Company was established in 1936, as a spin-off of Toyoda Automatic Loon, a Japanese textile company

• Toyota’s primary focus was trucks and busses, specifically those used by the Japanese Imperial Army in World War II.

• Toyota’s first commercial passenger car was the model SA, known as the Toyopet

• The Crown was the first Toyota vehicle to be exported to the United States in 1957

• The Toyota Camry was introduced in 1983, replacing the Toyota Corona

• The Camry quickly became Toyota’s best selling car, and won recognition from Consumer Digest as a “Best Buy” every year since 1986. It has also been the best selling car in the United States from 1997-2007, except for 2001

Toyota….Moving Forward

Camry Hybrid

The Camry Hybrid is Born

• The Toyota Camry Hybrid was first introduced in May, 2006

• The Camry is the third Toyota vehicle to offer Toyota’s Hybrid Synergy Drive, joining the Prius and Highlander Hybrid

• The Camry Hybrid is a “full hybrid” which runs on gasoline, electric engine, or on a combination

• This feature helps drivers save on gas with a fuel economy of 43 miles per gallon in the city, 37 miles per gallon on the highway

• Produces 80% less pollution (smog forming emissions) than similar gasoline-only cars

Moving ForwardToyota….

Camry Hybrid Figures

• Toyota Camry Hybrid estimated sales in the U.S. are 60,000 per year and approximately 15% of total Camry sales

• Revenues from North America reached $76.6 billion in 2007, an increase of 17.5% over 2006

• The ‘big three’ (Prius, Highlander, and Camry) gives Toyota nearly 80% of the hybrid market share

Main Competitors:

- Honda Accord Hybrid- Nissan Altima Hybrid - Saturn Aura Green Line- Chevrolet Malibu Hybrid


SWOT AnalysisStrengths:-Trusted brand-Camry already one of the most poplar cars on the market-Mid-range vehicle-2007 Family Sedan Car of the Year.-High Miles per Gallon (40 city, 37 highway) - Features conveniences normally found on a luxury car -Drives like a regular sedan-Innovative

Opportunities:

-Future of the Automotive industry-People are increasingly concerned with the environment, especially youth-Rising Gas Prices-Foreign Oil Dependency-Government Subsidies

Weaknesses:-Higher initial cost -Foreign Company, loses the American loyalty consumer-Pricing Strategy (to low/high)-Tight Headroom -Not a high-performance vehicle (as opposed to the accord hybrid) -Savings could take years, payback longer-Target: Middle aged American -Advertising strategy

Threats:

-“hippie” car-People aren’t ready for the switch to hybrid-Increasing Competition-Constantly creating better technology-Some feel adversely towards hybrid tech -Continuous maintenance.

INTERNAL

EXTERNAL

Advertising Audit Grid

Target Positioning Image

Current Demographic

ads target middle-aged middle-Americans who are:- parents- traditional - pragmatic- financially conservative- environmentally conscious- concerned for the welfare of

their children-« Mrs. Jones »---the all-american

soccer Mom

- multi-ethinic

Current Positioning

Toyota is:- the top-selling car company in

America-fanatically concerned with quality- technologically progressive

The Toyota Camry Hybrid:- is a non-radical extension of the

top-selling sedan in America- has progressive technology

in packaging palatable to the

traditional, pragmatic consumer-intersects consumers ‘ wants with

needs

Consumers see Toyota as:- reliable- technologocially advanced- progressive- sensible- growing- revolutionary

Consumers see the Toyota Camry Hybrid as:-family-oriented- « green »- fuel-efficient- equal parts traditional and

nontraditional-a step toward solving budgetary

and environmental concerns

Toyota…. Moving Forward

Business Decision• Target Position Period (Buying a first car on their own)

-Between college and starting a family

• Beginning of Career

• Age: 22 – 35

• Change of lifestyle that will impact future generations (driving hybrid will become the norm)

• Ultimately- We want to get this age group hooked so they continue to drive Toyota Hybrid Cars in the future and when they do start a family in years to come, their children will grow up riding in/driving their parents Hybrid car, and eventually want one for themselves.


Camry Hybrid

Automobiles – Hybrid Sedans

10/20

Toyota will develop a campaign targeting young adults who have recently graduated from college and who are buying their first car. The goal is to increase brand loyalty and create an association between Toyota and hybrids.

Upper-middle class people who care about the environment. They want a car that is reliable but also appreciate new technology. The buyer is the decision maker of the household.

The buyer themselves, or family members of the buyer. The user may have convinced the buyer to buy hybrid technology, or may not be as concerned about driving a hybrid as the user themselves.

Goal is to make Toyota be seen as the leader of hybrid technology. Focus on well educated young adults buying their first car, and urge them to change to hybrid technology. Also, focus on the existing well-established reputation of the Camry.

The car for your future.

-quality -innovative-affordable -reliable

-environmentally friendly-long lasting-practical design

-leader-customer oriented-quality products

Site A: Toyota Site B: Honda Site C: Chevy

Type of Outlet

Toyota Car Dealership

Honda Car Dealership Chevy Car Dealership

Lot Layout -Surrounded by other mid-size sedans-Located by customer parking and directly in front of the store entrance. -Camry is the first car you see on the lot upon entering-An entire row is occupied by the Camry and Camry Hybrid-Camry Hybrid is situated in the middle of the Camry row- Easy to navigate through the car lot - The Camry row contains different color options -Lot is organized by different car categories with many rows

-One row of a variety of Honda cars-Honda Accord Hybrid was on display at the entrance of the store (only Accord Hybrid on the lot)- First car you saw as you approached the entrance -The other midsize sedans were in the row opposite of the store entrance-Small lot, easy to navigate

-enormous lot with a wide selection of different vehicles-mid-size sedans were in the front next to the entrance-Many Chevy Malibu but only a few Hybrids mixed in with the bunch-Many colors to choice from- Lot is overwhelming

Site Layout:LocationArchitectureDesignDécor

-located on Cunningham off I74-freestanding store with only the Toyota brand name on the building-classic, clean, and welcoming with emphasis on red and silver (all Toyota dealership built the same so customers can recognize easily)-High ceilings and open room with little clutter-The interior for the store is customer friendly with open rooms, complimentary food, waiting room with flat panel TVs, child center, and car showcases. -The front desk was low and inviting with different brochures of Toyota’s vehicles- Many Car salesmen to answer questions

-Located in Savoy on Neil St. -Free standing store with the Honda emblem -Fun, contemporary with emphasis on blue and silver- Front desk was small and high from the ground-High ceilings but the room was very crowded with cars. -Only a square room with car showcases and car décor( classic car hanging from the wall)-Rooms off to the side for customers to buy cars - Only one car salesmen around

-Congress Ave, Rantoul -Stand Along building with many car logos not just Chevy (Pontiac and Buick) -Big showroom with high ceiling. Front desk was occupied by a receptionist that didn’t great customers-Many cars on showcase inside the store-Car buying rooms had privacy and off to one side -Friendly Atmosphere. -Décor included pictures of different cars from Chevy, Pontiac, and Buick-Many salesmen around to answer questions

Retail Communication Grid

Retail Communication Audit

Site A: Toyota Site B: Honda Site C: Chevy

Merchandising Cues

-Toyota Camry was near the front of the lot-Clearly prices sticker label on the car window-Organized according to vehicle and also categories in vehicles such as Camry Hybrids are with the Camry’s

-Honda Accord Hybrid was showcased at the front of the lot-Only Hybrid in stock-Prices clearly labeled on car sticker-Cars on lot organized according to make and model

-Chevy Malibu Hybrid was in the front but also with other mid-size sedans. -Hard to find the Hybrids-Prices clearly labeled on the car-Cars organized according to type(one section with sedans, one with SUVs)

Brand Image - Innovative- Good value - No frills just a good car you can trust- Reliable-Easy to recognize because all Toyota dealerships are the same-Care for their customers

Brand Promise: A car for your future

-Contemporary-Modern-Dependable-Not as strong in Hybrid Technology

-Classic-American-Good cars, great price-Powerful-Friendly-Not known for Hybrid Technology

Takeaways The Toyota dealership was willing to help and the store was very customer friendly. It was a very comfortable, laid back atmosphere that eluded no pressure to by a car.

The Honda dealership had a atmosphere that lacked making people buy a car. The showroom was cluttered and made buyers uneasy. The lot offered a limited selection of cars. The salesman was very helpful and polite.

The Chevy dealership was huge and offered many varieties of cars. The process of finding the Hybrids was confusing. The inside of the show room was comfortable and peaceful and people were willing to answer questions. No real pressure.

Brand Relationship Cues

-Leader in hybrid technology

-No gimmicks, you get what you buy-A car for anyone-Affordable- Consistent

-trendy-Vehicles for stylish people-Affordable -

-Traditional: Chevy image usually consistent-Patriot, applies to American workers-Affordable-Friendly

Competitive Positioning AuditHonda Civic Hybrid

Nissan Altima

Hybrid

Chevy Malibu Hybrid

Target-Multi-ethnic- image conscious -young urban

professionals-Environmentally conscious

- thirty to sixty year-old

business professionals-Concerned more with saving

money than with saving the

environment

-Twenty-five to fifty year old men

and women- Multi-ethnic- rural and urban lifestyles- blue collar and white collar -Prefer powerful cars- prefer American car

companies

Positioning-Environmentally friendly- More aesthetically pleasing

than the Prius.- Light-hearted- youthful- liberating- quirky

-Powerful- drives like a regular car- sophisticated- modern- emphasis on savings- distancing self from “green

movement”

- exclusivity

- attempts to prove Malibu is a competitor to Camry and Accord-Powerful - high quality-Reliable-Durable-Affordable

Image - unsophisticated imagery (penguins and cheese). -breezy, cheerful music-abundance of natural imagery- young, hipster actors

-sleek color scheme: gray,

black, and blue-Condescending copy toward

“green” movement-Emphasis on it’s limited

availability

- simple, elegant print ad design

-sleek, simple print ad

design- bold red background

- multi-ethnic actors-country and city scenes- portrayals of blue and white collar America.

(New) Advertising Audit Grid

TargetWho is their customer?

Personality, demographics, etc.

PositioningHow are they different?

Benefits > Emotions

ImageWhat do people remember about

them?Twenty-three to thirty-five year

old men and women who are:

- transitioning from a part-time

job or college into his or her first

career.

- buying a car on one’s own for

the first time

- environmentally conscious

- spending conscious

- increasingly pessimistic about

America’s dependence on

foreign oil

- multi-ethnic

- concerned with product

reliability

- equal parts traditional and

revolutionary.

- the bridge between the

polluted environment of your

parents and the “green” world

of tomorrow.

- The owner and leader of the

hybrid product category

- reliable

- safe

- trustworthy

- familiar

- revolutionary

- “green”

- optimistic

- affordable

- smart

- youthful

- an easy step to better the

environment

- proof of one’s political

and social beliefs/affiliations

- sleek and modern- emphasis on nature in both rural

and urban environments- accents of bold, natural colors- thought-provoking and

contemplative voice-over- up-beat, edgy music- youthful, multi-ethnic actors

depicted in conservative to

nontraditional careers and

lifestyles.- aesthetic and narrative

emphasis on «transition for the

better »

Historical Advertising Audit

• 2002 - Conill Advertising develops the “Time of Your Life” campaign targeting the Camry to Latinos

• 2005 – Toyota creates a campaign highlighting the “Hybrid Synergy Drive” of the Prius and Highlander

• 2006 – The first advertisement for the Hybrid is aired during the superbowl; also created by Conill and targeting Hispanic viewers

• 2007- Toyota develops a short film modeled after the BMW films. “What You Want is What You Need”

Situation

Executive Summary• The Toyota Camry Hybrid was first introduced in May, 2006 • The Camry is the third Toyota vehicle to offer Toyota’s Hybrid

Synergy Drive, joining the Prius and Highlander Hybrid • The Camry Hybrid is a “full hybrid” which runs on gasoline,

electric engine, or on a combination • This feature helps drivers save on gas with a fuel economy of 43

miles per gallon in the city, 37 miles per gallon on the highway • The Hybrid can drive 550 miles before getting more gas. That’s

three trips to Chicago and back!• Produces 80% less pollution (smog forming emissions) than

similar gasoline-only cars • Toyota Camry Hybrid is manufactured in Kentucky, making it an

American made foreign brand car.

Toyota…. The Age of Sage

Camry Hybrid Figures

• Toyota Camry Hybrid estimated sales in the U.S. are 60,000 per year and approximately 15% of total Camry sales

• Revenues from North America reached $76.6 billion in 2007, an increase of 17.5% over 2006

• The ‘big three’ (Prius, Highlander, and Camry) gives Toyota nearly 80% of the hybrid market share

Main Competitors:

- Honda Accord Hybrid- Nissan Altima Hybrid - Saturn Aura Green Line- Chevrolet Malibu Hybrid


Toyota Camry Hybrid Currently

• Target: ‘Greenies’ • Men and women • Age: 35-55• 2.5 kids• Commute to work• Green -recycle, reuse many home products, eat organic foods (Whole Foods or Trader Joe’s)• Very environmentally conscious • Purchase behavior is well thought out and conscious of

the future• Up to date with new technology and innovations


Mature

Instant gratification Long term benefits

Youth Oriented

Positioning Grid

The Inspiration

• It's not easy being ... jade, emerald, lime. We're tired of the word "green" and refuse to use it. Although it has come to mean environmentally friendly, it can also imply naiveté, immaturity or a lack of sophistication. Not fair. The 2007 Toyota Camry Hybrid sedan is pure smarts. It's fresh, refined and above all, very, very normal. It deserves a new hue. Sage is a good variation. It's descriptive and wise at the same time.

-By Donna DeRosa, Managing Editor of Edmunds Inside Line


Objectives• Move into a new generation of Camry Hybrid buyers,

targeting an untapped market.

• Educate the new market that making the ‘change’ to Hybrid is the only easy change that is taking place in their life.

• Going ‘Sage’ is a sophisticated, normal way to make a difference while still encompassing the luxuries of everyday life.


New Target ‘Sages’

• Age- 25-35

• Male and Female

• Going through major changes in life.

• Have their own first substantial disposable income.

• Want to make a difference for the environment without making dramatic lifestyle changes.


Media Pre-PlanSituation Analysis

Define Problem/Opportunity

Marketing StrategyIdentify Solution/Means

Creative StrategyIdentify Message

-15% of cars are Toyota and 15% of Camrys are Hybrid

-Cost: $25,000

-Sales: 60,000/year

-Made in Kentucky and sent to Toyota Dealerships

-Currently very little advertising for the Hybrid

-Branching into a more mainstream market segment

Problem: People don’t see themselves as being “green” and therefore don’t think that buying a hybrid vehicle is consistent with their identity.

Opportunity: No one else has gone after a young mainstream market with a Hybrid vehicle. We are targeting a new generation.

-Marketing objectives: A sophisticated, normal way to make a difference while still encompassing the luxuries of everyday life

-Encourage awareness of benefits of the Camry Hybrid, increasing awareness by 60% and market share of Camry Hybrids within the Camry category to 45%

-Distribution through the US, focusing on major metropolitan cities

-Cannibalize sales of regular Camry and focus on product, promotion, and placement

-Need a car that is environmentally friendly but still has expected luxuries and comforts

-Comfortable transition into the hybrid category

-The smart, comfortable change in a uncertain era

-Normalize green ideology to a receptive audience

-Full page magazine ads, 30 second TV spots

-Mass: print, TV, billboards

-Targeted: internet, events, giveaways

Creative Plan

Media PlanMedia Vehicle Reach/Frequency % Budget / $ Allocation

Network/Cable TV Reach 70% of Sages at least twice a week by the end of Q2

40% = $160 million

Magazines Reach 20% of Sages at least twice a month by the end of Q1

10% = $40 million

Out of Home (OOH) Reach 75% of Sages in urban areas at least three times a week by the end of Q1

15% = $60 million

Sponsorships, Giveaways, & Promotions

Reach 30% of Sages at least by the end of Q4

10% = $40 million

Online Reach 80% of Sages at least three times a week by the end of Q1

25% = $100 million

PR Reach 50% of Sages at least 2 times a month by the end of Q1

Free!

Where Is the Budget Going?

Promotions Etc.10%

TV40%

Online25%

Magazines10%

OOH15%

Timeline

Q1 Q2 Q3 Q4

Begin ads on TV,

magazines, and internet, PR, BTL and

OOH

Begin negotiating

sponsorships

Set up promotions in

large office buildings

Sponsor summer

tours

Continue all

ATL,BTL advertising

Continue all

ATL,BTL advertising

Media

• National/Cable TV

– Advertisements: Lost, 24, Grey’s Anatomy, Big Shots, ESPN

– Product Placement: The Office, How I Met Your Mother• Magazines

– Rolling Stone, GQ, Maxim, Cosmopolitan, People, Parade

• Out of Home Signage

– Billboards on highways that connect the city and suburbs

• Sponsorships, Giveaways, and Promotions

– Display models in the lobbies of large office buildings

– Sponsor Ben Folds on tour

– Give out reusable water bottles

• Online

– Ads on Yahoo! Finance, Digg.com, Careerbuilder.com

– Place ads during online TV showsToyota…. The Age of Sage

And now for the ‘Age of Sage’

The Age of Sage

• New: - Logo

- Tagline

- Color Scheme

- Concept ‘Changes’

PRI NT

AD

Banner/Billboard Ads

.

BTL

Toyota Widget

Evaluation

Tracking

• Increase in Website Visits

• Increase in Sales

• Survey’s

• Test Drives

• Buzz- on Blogs and websites

• Times the Widget is used
