10 step marketing plan for toyota rav4 patrick reyes
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10 step marketing plan for toyota rav4 patrick reyes
- 1. 10 STEP Marketing Plan for Toyota RAV4 Patrick Reyes November 2013 http://patricklimreyes.blogspot.com/ 1
- 2. Disclaimer This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes. http://patricklimreyes.blogspot.com/
- 3. Steps 1 to 5 Successful and Driven Males… 1. 2. 3. 4. 5. RAV4 PTM are successful males with active lifestyles Who need a safe compact SUV, that separates them from the rest, and demand efficiency Can choose CRV & Tucson Gap is elegant style and reliable after-sales service The projected compact SUV market for 2013 is PHP11.7B http://patricklimreyes.blogspot.com/
- 4. Steps 6 to 10 Looking for the Perfect Drive 6. 7. 8. 9. 10. RAV4 has a superior engine and proven track record in after-sales service RAV4 is priced higher for its more superior engine Uses Events & Experiences, Public Relations and Price Promotions Is available nationwide Uses low cost production for superior product at marginal cost difference http://patricklimreyes.blogspot.com/
- 5. 1. The RAV4 primary target market (PTM) are Successful & Driven Males with active lifestyles • Male, 25 up to 64, social class AB and C, can be any of - single, married, young parent, newly single, or a retiree • Professional and successful with an active lifestyle and engaged in expensive outdoor sports like golf and biking • Uses the vehicle frequently in the city to move around, but most specially for his recreational activities http://patricklimreyes.blogspot.com/
- 6. Today’s Successful & Driven males’ needs are expansive Need to be a responsible owner and care for the environment SelfActualization Needs Need to be seen as “having arrived” and successful Need to belong to car owners Need a safe car (Self-Development & Realization) Esteem Needs (Recognition, Status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological needs (food, water, shelter) Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler http://patricklimreyes.blogspot.com/ 6
- 7. 2. Successful & Driven Males’ needs, wants, & demands Successful & driven males need a safe and secure vehicle to move around, project the image of success, and be involved in protecting the environment where he is actively engaged Successful & driven males prefer RAV4 for its new style, brand reliability, and to set himself apart without being seen as excessive Successful & driven males demand a stylish and fuel-efficient compact SUV to distinguish himself from the rest http://patricklimreyes.blogspot.com/
- 8. 3a. RAV4’s Direct and indirect competitors are • Direct – Honda CRV, Mitsubishi ASX, Hyundai Tucson, Kia Sportage, Subaru Forester, Ford Escape, Mazda CX-5, BMW X3 • Indirect – Full-size SUVs, AUVs, sedans, motorbikes, public transport • Variables – style, convenience, technology(fuel-efficiency, power), safety, brand, price, service, resale value http://patricklimreyes.blogspot.com/
- 9. Jan to Aug 2013 Compact SUV Top Ten Sales http://bestsellingcarsblog.com/2013/09/26/philippines-august-2013-toyota-vios-breaks-record/ Top 10 Model Jan-Aug 2013 Sales (Units) Market Share Honda CR-V 1,464 25% Hyundai Tucson 1,464 25% Subaru Forester 783 13% Toyota RAV4 644 11% Kia Sportage 492 8% Subaru XV 471 8% Mazda CX-5 316 5% Nissan X-Trail 141 2% Mitsubishi ASX 107 2% 37 1% 5,919 100% BMW X3 Total Some models are not on the table (Ford Escape, etc.) and are already phased out http://patricklimreyes.blogspot.com/
- 10. 3b.1 Style vs. After-sales Services Position Map Style/After Sales Services Matrix Conservative/ Radical Conventional Sporty Elegant Spor tage Consistent XTrail Unpredictable RAV4 Tucson CRV ASX X5 XV Forester CX5 http://patricklimreyes.blogspot.com/
- 11. 3b.2 Functional Benefit Positioning Map Although the compact SUV is a niche in the automobile segment, this is a crowded subsegment • None of the brands used Price or did not highlight it (Tucson and Escape) • None used After-sales services as a benefit as well Toyota Honda Hyundai Subaru Ford • Functional benefit Power Comfort Styling Safety Price Fuel Efficiency Connectivity RAV4 CRV Tucson Forester Escape http://patricklimreyes.blogspot.com/
- 12. 4a. RAV4 shows who is using the vehicle and where the vehicle is being used RAV4 is the only compact SUV that had images of • a person or people using the RAV4 • where most likely the RAV4 is used or seen The rest of the competitors are product-centric containing images of the compact SUV on their own The target market should be able to visualize himself having the product and using the product The Successful & Driven male is a social animal that needs to interact with others and shown how the RAV4 is part of it http://patricklimreyes.blogspot.com/
- 13. 4b. RAV4 can also tap Successful & Driven females as well •A potential market that is not being directly targeted are female drivers • There are a lot of successful women today that also want a vehicle that expresses their style and power where a full—size SUV would look hideous on their smaller physical frame http://patricklimreyes.blogspot.com/
- 14. 5a. 2012 Car Sales and 2013 Projections 1. 2. 3. Based on NCSB paper on Philippine Automotive Manufacturing Industry 2012 sales totaled 182,000 units CAMPI reports sales of 156,649 units for 2012 2013 target is 210,000 units, 15% overall is reachable http://patricklimreyes.blogspot.com/
- 15. 5b. From Jan to Aug 2013 Sales 1. 2. 3. RAV4 had a market share of 11% Roughly 3,000 units of compact SUV for the remainder of the year Plenty of opportunity as only RAV4 and Subaru Forester launched their new models this year Jan-Aug 2013 Sales Top 10 Model (Units) Market Share Honda CR-V 1,464 25% Hyundai Tucson 1,464 25% Subaru Forester 783 13% Toyota RAV4 644 11% Kia Sportage 492 8% Subaru XV 471 8% Mazda CX-5 316 5% Nissan X-Trail 141 2% Mitsubishi ASX 107 2% BMW X3 37 1% Total 5,919 100% http://patricklimreyes.blogspot.com/
- 16. 5c. The Estimated Market Size is 1. Industry data = 9000 units (projected sales for 2013 based on trend) 2. Rough Average Price = PHP 1.3 M 3. Market Size = PHP 11.7 B Annually http://patricklimreyes.blogspot.com/
- 17. 6a. The Toyota RAV4 http://patricklimreyes.blogspot.com/
- 19. 6a. RAV4 vs. competition http://patricklimreyes.blogspot.com/
- 21. 6b. Product Description RAV4 is classified by Toyota Philippines under Crossover & SUVs together with Land Cruiser, Prado, and Fortuner.. 3 variants based on engine - 4x2, 4x2 Full Option and 4x4 Option http://patricklimreyes.blogspot.com/
- 22. 7a. Price comparison of the Top 5 Compact SUV RAV4 Price CRV 4x2 2.5 Gas A/T 1,357,000 CR-V 2.0 V MT 4x2 2.5 Gas A/T (W. Pearl) Price Tucson Price 1,275,000.00 Tucson Theta II 2.0L GL 2WD MT 1,372,000 CR-V 2.0 V AT 1,325,000.00 4x2 2.5 FO Gas A/T 1,581,000 CR-V 2.0 S AT 4x2 2.5 FO Gas A/T (W. Pearl) 1,596,000 CR-V 2.0 S AT (White Orchid Pearl) Forester Price Sportage Price 1,018,000.00 Kia Sportage 2.0L 4x2 Gas 6AT 1,188,000.00 Tucson Theta II 2.0L GL 2WD (SU) MT 1,048,000.00 Kia Sportage 2.0L 4x2 CRDi 6AT 1,320,000.00 1,390,000.00 Tucson Theta II 2.0L GL 2WD AT 1,068,000.00 1,410,000.00 Tucson Theta II 2.0L GL 2WD (SU) AT 1,098,000.00 Tucson Theta II 2.0L GLS 2WD AT 1,188,000.00 Tucson Theta II 2.0L GLS 2WD (SU) AT 1,228,000.00 4x4 2.5 Gas A/T 1,963,000 CR-V 2.4 SX AT 1,525,000.00 Tucson R-eVGT 2.0L GL 4WD AT 1,368,000.00 Forester 2.0i-L 1,398,000 Kia Sportage 2.0L 4x4 Gas 6AT 4x4 2.5 Gas A/T (W. Pearl) 1,978,000 CR-V 2.4 SX AT (White Orchid Pearl) 1,545,000.00 Tucson R-eVGT 2.0L GL 4WD (SU) AT 1,408,000.00 Forester 2.0 XT 1,868,000 Kia Sportage 2.4L 4x4 Gas EX 6AT Deluxe 1,698,000.00 Tucson Theta II T2.0 Limited 4WD 1,488,000.00 Tucson Theta II 2.4L GLS 4WD Premium AT 1,628,000.00 Tucson R-eVGT 2.0L GLS 4WD Premium AT 1,728,000.00 http://patricklimreyes.blogspot.com/ 1,288,000.00
- 23. 7b. RAV4’s Perceived-Value Pricing • The RAV4 is priced towards the higher end compared to the rest of the Top 5 sellers for compact SUV • Prices are relatively within range with a difference of roughly 10% to 25% • But RAV4 Specifications are much superior using a 2.5-liter engine • Perceived-Value Pricing strategy was used as RAV4 was the pioneer of the compact SUV segment http://patricklimreyes.blogspot.com/
- 24. 8a. Toyota uses Sales Promotion, Events & Experiences, and Public Relations extensively 1 3 2 http://patricklimreyes.blogspot.com/
- 25. 8b. Promotions Toyota also provides promos similar to competitors – low down, low amortization, and financing Toyota promotes brand through its Toyota Mastercard http://patricklimreyes.blogspot.com/
- 26. 8c. Events & Experiences • World Of Toyota Motor Show • Vios Cup Race http://patricklimreyes.blogspot.com/
- 27. 8d. Public Relations • Establishment of a Toyota Technical School http://patricklimreyes.blogspot.com/
- 28. 8e. Competitor Promos Honda is… • Packaging itself as having more seats • Also has price discounts • Accessories packages http://patricklimreyes.blogspot.com/
- 29. 8f. Competitor Promos Subaru similarly has • Low down payment • Free Insurance • 3-year registration While none is posted in Hyundai http://patricklimreyes.blogspot.com/
- 30. 9. RAV4 is available through a wide network of car dealers • Toyota Motor Philippines having been in the country since 1988 have dealers in Metro Manila • Luzon • Visayas • Mindanao • http://patricklimreyes.blogspot.com/
- 31. 10. The generic winning strategy is Low Cost Producer Supply and Distribution Leverage seems an obvious strategy as Toyota Philippines is backed by GT Capital (Metrobank Group) and Toyota production processes also use leverage from its supply chain. However, Toyota being the master of Lean Manufacturing and Just In Time inventory is able to produce more vehicles at much lower cost than the competition which translates to higher profits. http://patricklimreyes.blogspot.com/
- 32. Steps 1 to 5 Successful and Driven Males… 1. 2. 3. 4. 5. RAV4 PTM are successful males with active lifestyles Who need a safe compact SUV, that separates them from the rest, and demand efficiency Can choose CRV & Tucson Gap is elegant style and reliable after-sales service The projected compact SUV market for 2013 is PHP11.7B http://patricklimreyes.blogspot.com/
- 33. Steps 6 to 10 Looking for the Perfect Drive 6. 7. 8. 9. 10. RAV4 has a superior engine and proven track record in after-sales service RAV4 is priced higher for its more superior engine Uses Events & Experiences, Public Relations and Price Promotions Is available nationwide Uses low cost production for superior product at marginal cost difference http://patricklimreyes.blogspot.com/
- 34. 10 STEP Marketing Plan for Toyota RAV4 Patrick Reyes November 2013 http://patricklimreyes.blogspot.com/ 34
Editor's Notes
- The Primary Target Market of Toyota RAV4 is male as shown on the images splashed on Toyota Philippines’ website. Although the website shows images of a young male, the Age and Life-Cycle Stage can be wide and range from the mid-20s up to 64.The Life Stages can be single, newly married, young father with a small family, newly single, and up to retirees who need more room than a car for their active lifestyle. With the high price points for compact crossover SUV segment, the target market would expectedly come from the upper middle class to AB composed of affluent young urban professionals, executives, and retirees. (With the advent of BPO industry explosion and globalization, we have seen an influx of foreign executives and expatriates that are now part of the probable market.) As the images used on Toyota Philippines’ website show, the target market has an active and outdoor lifestyle. Probably engages in expensive outdoor-sport or hobby like golf or biking that requires driving out of town. As RAV stands for Recreational Active Vehicle, it suggests an active and healthy lifestyle with every intention to use the vehicle as part of recreational activities. The target market is probably an average height male where the compact crossover SUV is the right size, providing higher visibility than a car, but with the maneuverability and fuel economy of a car.They are achievers who would like to set themselves apart from the rest or the average without being seen as excessive. As the compact crossover SUV provides convenience, it is seen to be for everyday use as well as for long drives out of town on weekends so it has to be also efficient. They would most likely also be seen as stylish and savvy value for money shoppers.
- Safety needs for a safe carSocial needs to belong and interact with those that have a similar car/model and interests through car clubsEsteem needs for “having arrived” and recognized as extremely successfulSelf-actualization needs by being a responsible car owner and user by using fuel-efficient vehicles that are green and concerned for the environment
- The target market has Safety Needs for a reliable and safe vehicle for transport. The safety need also include better ability to address weather conditions such as flooding through a higher profile than a car. The Social Needs is addressed through association with enthusiasts and car-owners clubs of a particular brand/model, Esteem Needs are met as “having arrived” with the capability to own a high price point vehicle, and Self-Actualization Needs are met by having a vehicle that is fuel efficient showing concern for the environment. The target market wants an attractive, raised vehicle that is not too big, fuel-efficient, and drives like a car. The demands of the target market, is that it should be stylish, provides the ride and the drive like a car, fuel efficient with concern for the environment that would suit the image they would also like to project. Support for companies that have are invested in the country long-term through production/assembly facilities.
- Direct competitors are other brands in the same compact SUV segmentIndirect competitors would be full-size SUVs, other vehicles and form of transportVariables can range from style, convenience, technology (fuel-efficiency, power), safety, brand, price, service, resale value
- Sources:http://manilastandardtoday.com/2013/09/12/august-car-sales-rose-21/http://www.philstar.com/business/2013/08/13/1082941/car-sales-8http://www.carguide.ph/2013/09/ford-philippines-sales-rise-44-percent.htmlhttp://www.carguide.ph/2013/08/ford-philippines-posts-record-july.htmlhttp://www.autofocus.com.ph/http://www.autoindustriya.com/auto-industry-news/industry-report-august-2013-cumulative-auto-sales-down-by–1304.htmlNote: This ranking only includes models for which sales figures are available, some models do not appear (eg Hyundai Eon, Suzuki Celerio, Ford Escape, Nissan Sentra, Chevrolet Aveo, Mazda2, Suzuki SX4, Suzuki Jimny or Mitsubishi Fuzion).
- RAV4 - Power, Comfort, Styling, SafetyCRV - Versatility, Intuitive Display, Fuel Economy Tucson - Engineered body, Powerhouse engine, Efficiency Forester - Comfort, Versatility, All-Wheel DriveEscape - Stylish, Performance, Comfort & Safety, Power Although the compact SUV is a niche in the automobile segment, this is a crowded sub-segmentPrice is not a big issue and none of the brands used Price as a strategy or did not highlight it (Tucson and Escape)None also used After-Sales services as a
- RAV4 focus is on the male while the rest are too product-centric. No images of people using the product, interacting with the product. Need to show A potential market that is not being directly targeted are female drivers. There are a lot of successful women that also want a vehicle that expresses style and power where a full—size SUV would look hideous on their physical frame.Associate with popular and successful personalities
- A potential market that is not being directly targeted are female drivers. There are a lot of successful women that also want a vehicle that expresses style and power where a full—size SUV would look hideous on their physical frame.
- Based on NCSB paper on Phil Auto Manufacturing (http://www.nscb.gov.ph/ncs/12thNCS/abstract/invited/IPS-Industry,%20Trade%20&%20Business%20Statistics_Mills.pdf )2012 sales 182,000 unitsCAMPI 156,649 units2013 Sales through AugustRAV4 new model just came out 2013
- RAV4 is classified by Toyota Philippines’ website under Crossover & SUVs together with Land Cruiser 200, Land Cruiser Prado and Fortuner.Images of outdoor, country club like atmosphere, golf course, and golf bag in the back of the car is splashed across the product page.Keywords used to describe were Power, Comfort, Styling, and Safety.3 variants based on engine and 4x2, 4x2 Full Option and 4x4 options, comes in 5 colors and with a PHP 15,000.00 premium on White Pearl color.The RAV4 is also referred to as a compact crossover.
- RAV4 is classified by Toyota Philippines’ website under Crossover & SUVs together with Land Cruiser 200, Land Cruiser Prado and Fortuner.Images of outdoor, country club like atmosphere, golf course, and golf bag in the back of the car is splashed across the product page.Keywords used to describe were Power, Comfort, Styling, and Safety.3 variants based on engine and 4x2, 4x2 Full Option and 4x4 options, comes in 5 colors and with a PHP 15,000.00 premium on White Pearl color.
- Other forms of advertising like print and TV are much more focused on the business section of broadsheets and business channels.
- Similar with other brands, Toyota provide promos that include low down payment, low monthly amortization, and financing
- Toyota as a brand promotes through experiences and events such as participation in car races and car shows, including holding its own World Of Toyota Motor Show
- TMP has achieved the much-coveted Triple Crown award from 2002-2012, being No. 1 in Passenger Car Sales, No. 1 in Commercial Vehicle Sales and No. 1 in Total Sales.