Toyota Camry Hybrid

Synchronic Communications Group 5: Emily Sibbing Laura Madary Lauren 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 Forward Toyota….

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…. Moving Forward

SWOT Analysis INTERNAL EXTERNAL

Strengths:

- 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.

Advertising Audit Grid Toyota…. Moving Forward 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

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.

Toyota …. Moving Forward

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

Retail Communication Grid 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: Location Architecture Design Décor -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 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 Audit Honda 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 Target Who is their customer? Personality, demographics, etc. Positioning How are they different? Benefits > Emotions Image What 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

Positioning Grid Mature Instant gratification Long term benefits Youth Oriented

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-Plan Situation Analysis Define Problem/Opportunity Marketing Strategy Identify Solution/Means Creative Strategy Identify 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 Plan Media 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?

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