10 step marketing plan for toyota innova group e

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10 STEPMarketing Plan for TOYOTA

INNOVA

GROUP E Jennifer Lorraine Yu

Benehlyn TiuLynie TumabiniOctober 2013


Disclaimer

This 10 Steps Marketing Plan for Toyota Innova is part of the mandatory requirements of Prof. De Ungria’s marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, magazines, and 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 it is easier to share.


Steps 1 to 5Reliability builds Confidence

1. Toyota Innova PTM are “Building Confidence for Young Parents”

2. For growing family and having new businesses.3. Can choose from Mitsubishi Adventure, Isuzu Crosswind,

Chevrolet Orlando, and Nissan Grand Livina4. Gap is all other brands of the same category are known

for typical family AUB that has the capacity for seating a number of people and spacious cabin.

5. Half year of 2013, market size has reached to 102,571 registered vehicles in the Phils., Toyota Innova sold 7,331 units, ranked no. 2 and niched 7.1% market share

http://bestsellingcarsblog.com/2013/09/05/philippines-6-months-2013-now-with-top-140-models-ranking/


6. Toyota Innova is a MPV that has smart engine power in 4 versions J,E,G & V; can choose from standard feature to luxury; spacious cabin, luxurious interior

7. Price varies from P 832k – P 1.246M depends on the model

8. Uses ads such as media, newspaper and magazine, websites, promotions, events & experiences, public relations, and word of mouth

9. Stores are conveniently located nationwide10. Uses differentiation approach, supply and

distribution leverage approach to win

Steps 6 to 10Best Value for Money


1. Toyota Innova primary target market (PTM) are “Building Confidence for Young Parents”

35-40 yrs old, social class A,B & C, married or single parent with kids.

Starting to have growing family and new business.

Use daily, can reach in different destination with comfort and share bonding moments with loved ones; buy car once every 3 to 4 years.


2. PTM needs to boost its confidence

Love of Family

Brings confidence and optimistic value

Reference: Marketing Management 14th Edition, Kotler


2. Young Parents needs, wants, & demands

Young parents love of family strengthens and restore its self-esteem.

Young parents choose Toyota Innova because it’s a multi purpose vehicle, powerful engine, available in different variants, safe drive, fuel efficient.

Young parents demand is to have an all purpose vehicle, that has riding comfort with the style, performance and security of SUV; best value for money.


3a. Toyota Innova has various alternatives DIRECT:

Isuzu Crosswind, Mitsubishi Adventure, Chevrolet Orlando, Nissan Grand Livina

INDIRECT: SUVs, vans & pick-ups, sedans &

hatchbacks, and other non-MPVs/AUVs VARIABLES:

Age, price, comfort, promotions, specifications, accessories, performance, resale value, versatility, availability, after sale service, credit facility


3b. Toyota Innova is #1 in the market for young growing family and for new growing businesses

Age vs Price Matrix Age/

Price Matrix

20-35 yrs 35-55 yrs

55 yrs up

Low range

Middle range

High range

INNOVA

CROSSWIND

ORLANDO

GRAND LIVINA

ADVENTURE

Reference: Top Gear Magazine


Toyota Innova position itself as the only MPV that offers variety to choose from standard to luxury…

Functional Benefit vs Variant Matrix

Functional BenefitChevrolet Orlando

Isuzu Crosswind

Mitsubishi Adventure

Nissan Grand Livina

Toyota Innova

Engine Displacement 1.8 2.5 2.5 1.8 2.0/2.5

Engine Fuel Type GAS DIESEL DIESEL GASGAS/

DIESEL

Transmission Type AT MT/AT MT AT MT/AT

Cruise Control YES NO NO YES NO

Seating Capacity 7 7 5-9 7 8

Captain Chair NO NO NO NO YES

Leatherette Upholstery

NO NO NO YES YES

Spacious Cabin YES YES YES YES YES

Reference: Top Gear Magazine


Innova has competitive advantage in Diesel MT models in terms of all functional benefits over Mitsubishi Adventure & Isuzu Crosswind.

Isuzu Crosswind (MT-D), Nissan Grand Livina (AT-Gas) & Chevrolet Orlando (AT-Gas) are among the closest competitors.

Toyota Innova has to add amenities and safety features in Gas AT models to be more competitive over Nissan Grand Livina and Chevrolet Orlando.

4a. Innova positions strongly in a differentiation market opportunity


4b. Toyota Innova’s marketing opportunity concentrates on the reliability Toyota Innova is the only MPV that has variety to

choose depending on… comfort budget purpose

Has the highest rating in over-all performance in its category

Other AUVs try to differ from its interior and exterior appearance but the purpose are almost the same.


Brand Positioning of Toyota and Toyota Innova

Toyota Innova: “ All you Desire. ”

Source: http://toyota.com.ph/


4c. “Positioning” brand identity from the maker….. “Everyone Loves the Innova” Its no wonder why the

Innova is the most love vehicle in the land. Made to be dynamic and stylish to keep up with your drive to live life with the ones you love.

The new, redesigned Innova became an instant favorite “for its versatility that has attracted a wider area of the market.

“This is one of the reasons it has become the commercial vehicle of choice for Filipino families across the country. It has held the No. 1 position in the AUV segment since it was introduced to the Philippine market seven years ago. This is a true sign that Filipino customers have come to love the Innova because of its Sure Advantages over the competition. - Michinobu Sugata, Toyota Motor Philippines president

http://www.toyota.com.ph/vehicle-innova.php


5a. Based from the survey, Toyota remains unbeatable with 41% market share

Chamber of Auto Manufacturers in the Philippines Inc. (Campi) and Truck Manufacturers Association (TMA) members, as well as other manufacturers, report that their sales to either of the two groups, sold a combined 41,702 units in the three-month period, beaching the 40,000-mark in the first quarter for the first time. Leading the performers for the first quarter of 2013:

Toyota Motors Philippines Corp. with a 41% market share Mitsubishi Motors Philippines with 24% Honda Cars Philippines followed with 9.51% Isuzu Philippines Corp. 6.56% Ford Philippines, 6.44%

Sales of Asian utility vehicles (AUV) and light trucks lagged behind the rest of the industry, growing just 3.5 percent and 2.5 percent, respectively.

http://business.inquirer.net/119303/vehicle-sales-


5a. Estimated market size of vehicle

1. Total market share of commercial vehicle from January to June 2013 = 102,571* (est. sales Php90B)

* first time the 100,000 sales-milestone is passed after just 6 monthshttp://bestsellingcarsblog.com/2013/09/05/philippines-6-months-2013-now-with-top-

140-models-ranking/

Pos Model6m 2013

% Mkt May-June Pos 2012

Share 1 Toyota Vios 8,895 8.70% 3,129 1 12 Toyota Innova 7,331 7.10% 2,742 2 2

3Mitsubishi Montero Sport

6,969 6.80% 2,584 3 3

4 Toyota Fortuner 6,364 6.20% 2,264 4 45 Mitsubishi Mirage 4,084 4.00% 1,362 5 n/a6 Honda City 3,931 3.80% 1,246 7 97 Toyota Hiace 3,514 3.40% 1,252 6 108 Isuzu Crosswind 3,431 3.30% 1,129 10 79 Toyota Avanza 3,385 3.30% 1,122 11 510 Toyota Hilux 3,330 3.20% 1,131 9 11


5a. Estimated market size of vehicle

Best Selling car Rank Make Units Sold

2012 1 Toyota Vios 14,979 2 Toyota Innova 11,805

3 Mitsubishi Montero Sports 11,798 Total Industry Sales: 182,955

2011 1 Toyota Vios 14,979 2 Toyota Innova 11,805 3 Mitsubishi Montero Sports 11,798 Total Industry Sales: 164,825

2010 1 Toyota Vios 15,391 2 Toyota Innova 12,608 3 Mitsubishi Montero Sports 12,247 4 Honda City 8,914 5 Toyota Fortuner 7,548 Total Industry Sales: 168,490

http://bestsellingcarsblog.com/2013/01/16/philippines-full-year-2012-toyota-leads-mitsubishi-at-world-best/


5b. Toyota claims 40% market share in the Philippines

http://motioncars.inquirer.net/9319/ph-on-course-to-breach-200000-unit-mark

As of 1st quarter of 2013


Toyota Motor Philippines Corp. continued to lead the market, accounting for a 40-percent share of total sales over a half year of 2013 (est. sales Php 36B= P90B x 40%)

Total market share of commercial vehicle from January to June 2013 was 102,571 units registered (est. sales Php 90B=P6.5B/7.2%)

Innova ranked no. 2 with the total units sold of 7,331 or 7.2% market share. Estimated sales in value is P 6.5B (lowest SRP P887k x 7331)

Last year, Innova ranked no.2 with 11,805 units sold or 6.5% market share (est. ave SRP P887k x 11805 = P10.4B)

2012 total market size = P161B For Toyota Motor Philippines, the Innova’s market performance has been

considered nothing short of phenomenal. As a testament to the demand for the Innova, every 16.7 minutes a newly assembled Innova rolls out the gates of Toyota Motor Philippines plant.

http://business.inquirer.net/47911/toyota-innova-the-filipino-everyman%E2%80%99s-mpv

5b. Estimated market size of Toyota Innova


5c. Consumer’s choice: Toyota

http://www.topgear.com.ph/news/industry-news/philippine-car-sales-figures-for-june-2013


5c. Estimated market size of vehicle based on consumer data 2012…

Est. total nationwide capacity per annum is 200,000

Average capacity per day 550 Estimated total investment for 2012 = P120B Out of 95.8M population in 2012, 34.5B age range from 15 & up

http://www.nscb.gov.ph/ncs/12thNCS/abstract/invited/IPS-Industry,%20Trade%20&%20Business%20Statistics_Mills.pdf

http://www.indexmundi.com/philippines/demographics_profile.html


5. Concluded that vehicle market size was Php 161B in 2012

1.Competitor data= P161B(182,955 units)

2.Company data = P161B (11,805 units x lowest SRP Innova P887k /

6.5%)3.Customer Usage data = P120B (200,000 units)


6a.Toyota Innova, like other AUVs, has sophisticated design


6a.Toyota Innova’s Direct and Indirect competitors

DIRECT COMPETITORS

INDIRECT COMPETITORS


6a. Innova and other cars point of sales are in showroom, car fair, company website……


6b. What makes Innova different as a product?

Only Innova carried on the highly successful IMV [Innovative International Multi-purpose Vehicle] platform

features the riding comfort of a passenger car coupled with the style, performance and security of a sport utility vehicle.

uses engine range of VVT-i and D4D boast of integrated technologies


6b. Innova is the only MPV that has variety of choices


7. Vehicle prices vary from engine specifications DSL A/T model: Innova’s price is moreflexible than Sportivo

PRICE

as of 9/1/2013 TOYOTA MITSUBISHI ISUZU CHEVROLET NISSAN

INNOVA ADVENTURE CROSSWIND ORLANDO GRAND LIVINA

DIESEL/AT

SPORTIVO X AT 8 SEATER 1,205,000

2.5 V DSL AT WP 1,246,000

2.5 V DSL AT 1,231,000

2.5 G LMT DSL AT WP 1,228,000

2.5 G LMT DSL AT 1,213,000

2.5 G DSL AT WP 1,186,000

2.5 G DSL AT 1,171,000

2.5 E DSL AT 1,057,000


DSL M/T model: Innova’s pricerange is > than Adventure & Crosswind

PRICE as of 9/1/2013 TOYOTA MITSUBISHI ISUZU CHEVROLET NISSAN


DIESEL/MT SUPER SPORT DSL SE 963,000 GLS SPORT 2.5 MT 913,000 GLX SE 2.5 MT 853,000 GX DSL 718,000 TX 2.5 MT 675,000 SPORTIVO X MT 8 SEATER 1,140,000 SPORTIVO X JS MT 9 SEATER 1,140,000 XT MT 10 SEATER 883,000 XL MT 10 SEATER 794,000 XS MT 6 SEATER 750,000 2.5 G LMT DSL MT WP 1,163,000 2.5 G LMT DSL MT 1,148,000 2.5 G DSL MT WP 1,121,000 2.5 G DSL MT 1,106,000 2.5 E DSL MT 992,000 2.5 J DSL MT 887,000


GAS A/T model: Grand Livina < Innova < Chevrolet Orlando

PRICE as of 9/1/2013 TOYOTA MITSUBISHI ISUZU CHEVROLET NISSAN INNOVA ADVENTURE CROSSWIND ORLANDO GRAND LIVINA

GAS/AT 1.8 LT 1,238,888

ELEGANCE 1.8L AT 1,008,000

LUXURY 1.8L AT 928,000 2.0 V GAS AT WP 1,191,000 2.0 V GAS AT 1,176,000 2.0 G GAS AT WP 1,131,000 2.0 G GAS AT 1,116,000 2.0 E GAS AT 1,002,000


PRICE

as of 9/1/2013 TOYOTA MITSUBISHI ISUZU CHEVROLET NISSAN


GAS/MT

2.0 G GAS MT WP 1,066,000

2.0 G GAS MT 1,051,000

2.0 E GAS MT 937,000

2.0 J GAS MT 832,000

Innova has no competitor in GAS M/T model


PRICE ANALYSIS

as of 9/1/2013

ADVENTURE CROSSWIND CHEVROLET ORLANDO GRAND LIVINA

INNOVA HI-END LOW-END HI-END LOW-END HI-END LOW-END HI-END LOW-END

DSL A/T 3.4% > 14% <

DSL M/T 20% > 31% > 2% > 18% >

GAS A/T 4% < 18% > 8% >

GAS M/T

PRICE ANALYSIS TABLE


Concluded that Toyota Innova…

2.5 E DSL A/T model is 14% cheaper than Sportivo X A/T

DSL M/T is 2% - 18% higher than Crosswind and 20%-31% higher than Adventure

Gas A/T is 4% lower than Chevrolet Orlando and 8% - 18% higher than Grand Livina

Has no competitor in GAS M/T model Use Differentiated Pricing strategy model


8a. Toyota Innova uses a variety of ads, discount promos, events & experiences, and word of mouth


8a. Magazine features of Toyota Innova


8a. Toyota Innova advertising its 25th year “A symbol of success and of moving forward together.”

Reference: http://toyota.com.ph/


8a.Toyota’s “Pay Low” Promo


8a. Events & Experiences of driving Toyota Innova

http://business.inquirer.net/47911/toyota-innova-the-filipino-everyman%E2%80%99s-mpv


8a. Public Relation: Toyota cited for Environment Excellence


8a. Spreading the word of Toyota Innova


8b.Mitsubishi Adventure for OFW and Public Utility Vehicle


8b. Isuzu Crosswind empowering people the versatility ride and adopting the lifestyle of the people


8b. Chevrolet Orlando emphasizes on the seat comfort and flexibility of cargo space

Theater-style seating arrangements


8b. Nissan Grand Livina focuses on the luxury and comfort


9.Toyota has dealers nationwide Dealers from different parts of Philippines

Metro Manila 16 dealership stores

Luzon 10 dealership stores

Visayas 6 dealership stores

Mindanao 3 dealership stores

Order/inquire thru phone, email, or personal Can pick-up or deliver the vehicle Payment can be on cash, installment, or loan

(thru banks or in-house)


10. Toyota uses Supply and Distribution leverage and Differentiation strategies to win!

Toyota is no. 1 in supply and distribution leverage. Toyota has plant located in Sta. Rosa, Laguna.

Dealers are conveniently located in different places that it is accessible for the customers.

Toyota Innova has many variants to choose from standard to luxury.

Toyota Innova is assembled in the Philippines. Parts are available, no problem in repair and

maintenance. Prices are reasonable. Best value for money.


SUMMARY

Steps 1 to 5Reliability builds Confidence

1. Toyota Innova PTM are “Building Confidence for Young Parents”

2. For growing family and having new businesses.3. Can choose from Mitsubishi Adventure, Isuzu Crosswind,

Chevrolet Orlando, and Nissan Grand Livina4. Gap is all other brands of the same category are known for

typical family AUB that has the capacity for seating a number of people and spacious cabin.

5. Half year of 2013, market size has reached to 102,571 registered vehicles in the Phils., Toyota Innova sold 7,331 units, ranked no. 2 and niched 7.1% market share

http://bestsellingcarsblog.com/2013/09/05/philippines-6-months-2013-now-with-top-140-models-ranking/

6. Toyota Innova is a MPV that has smart engine power in 4 versions J,E,G & V; can choose from standard feature to luxury; spacious cabin, luxurious interior

7. Price varies from P 832k – P 1.246M depends on the model

8. Uses ads such as media, newspaper and magazine, websites, promotions, events & experiences, and word of mouth

9. Stores are conveniently located nationwide10. Uses differentiation approach, supply and

distribution leverage approach to win

Steps 6 to 10Best Value for Money


10 STEPMarketing Plan for TOYOTA

INNOVA

Jennifer Lorraine YuBenelyn Tan

Lynie TumabiniOctober 2013

Automotive

10 step marketing plan for toyota innova group e