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Toyota Prius EV: Marketing Management
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Toyota Prius EV: Marketing Management

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  • http://www1.eere.energy.gov/vehiclesandfuels/avta/light_duty/fsev/fsev_gas_elec2.html
  • Transcript

    • 1. Marketing Management (MKT300) Professor Richard Trutz Summer 2012 Chanchai Rukkhawattanakul (Wee) Cyrus Attarseidi Guo Dong Guo (Gordon) Piyanuch Kangwankijwanich (Tu) Vasatha Smitthimadhindra (Vicky)
    • 2. Agenda •Toyota EV Prius Introduction •Market Demands •SWOT Analysis •Sales Objectives •Marketing Objective and Strategies •Marketing Tactics •Marketing Communications •TVC 60 sec •Financial support •Conclusion
    • 3. Toyota EV Prius Introduction •Sedan electric car •Good quality at affordable price ($36,850) •Eco-friendly and cost effective ($0.6 VS $3.8) •Easy to maintain, no oil change •Better after sale service (Certified used cars policy) •Coming in Q4 of 2012
    • 4. Market Demand Domestic Policy Goals • Reduce dependence on foreign oil • Reduce export of dollars, particularly to unstable regions Global Impact • Minimize climate change in Europe • Balance pollutions in China • Allocate funds for clean technology by governments around the world Climate Change • Transportation accounts for 15% of CO2 emissions • United Nations’ Framework Convention on Climate Change (UNFCCC) Gas Price • Increase gas price • High fuel price countries
    • 5. SWOT Analysis Strengths •The world’s reliable brand •High-quality cars at a reasonable price •High reputation of eco-car Weaknesses •Less dealers (only 1,200 VS 5,000 of Ford) •Indifferent car features from Ford and Nissan Opportunities •Increasing awareness of environmental concerns •High cost of fuel •Government’s subsidiary ($7,500 rebate & no oil tax) Threats •Expensive electric components •High initial price •Nissan Leaf, a brand leader
    • 6. Sales Objectives The sales volume will be 75,000 cars between August and December 2012 (15,000 cars per month) Toyota should have market share of EV cars at 1% in 2012 4% in 2013 7% in 2014 (Increase 3% each year)
    • 7. Marketing Objectives and Strategies Sale volume Introduction Maturity Growth Decline 30 Time (Months) Introduction Phase High Price Growth Phase High Price Competitor-base Pricing Standard Quality Value Pricing Toyota Nissan Standard Quality High Quality Low Price High Quality Low Price
    • 8. Marketing Tactics Categories Ford $35,200 Price Nissan Superior Value Proposition Toyota $39,995 $36,850 Just Noticeable Difference Feature Max. Speed Charging battery time Km. per full charge Dealerships in US 150 km/hr 135 km/hr 140 km/hr 7hr. 3.5 hr. 3.5 hr. 105 km 136 km 110 km 1,100 5,000 1,200 + online services After sales services 24/7 onsite car service - Lockout protection - Flat tire changes - Jump starts - Fluid delivery - Towing for the unexpected Certified used cars policy Spare component available Free maintenance 30,000 km Charge Charge Free (within 3 years) No No Yes Hard Easy Easy
    • 9. Marketing Communication Nissan Leaf: Funny but in serious Mood and tone Example: Gas powered everything campaign Toyota Prius: Fun, Sincere, Clean, and Colorful Be differentiate to generate interest and desire Target Audience: Generation Y or Millennial: the U.S. largest population, nature and social media lovers
    • 10. Marketing Communication Big Idea: “Prius. Hero by Choice.” Execution: Cartoon Mood and tone: Funny
    • 11. 60 SEC TVC Scene: Busy city Voice over: In the big city where pollution is everywhere Sound: Honk, Construction Scene: It start destroying buildings and bridges Sound: Scream, Car crash, Honk, Ambulance Scene: Smoke and Godzilla was born Sound: Scary music Scene: Hero appears Sound: Tan ta da da ! Scene; Crowded people Voice over: Here he come! Electric man Sound: Clapping, Hooray !
    • 12. 60 SEC TVC Scene: He is jumping close to Godzilla and it fears Voice of Godzilla: Don’t kill me. I’m sorry…(funny crying) Scene: Godzilla and people are stunned Voice over: What is he doing?! Sound: Cricket Scene: He jumped into the Toyota EV Prius Sound: Start engine Scene: Hero talks to camera Voice over: We have to solve the problem at its origin, pollution Scene: Godzilla is shirking Voice of Godzilla: Oh-O
    • 13. 60 SEC TVC Scene: People jumped into the Toyota EV Prius and driving. Sound: Happy song Prius EV Hero by Choice Effect: Fade in Effect: Fade in
    • 14. Energy Costs Per Mile for Electric & Gasoline Vehicles
    • 15. Average Energy Costs Saving ($/Year)
    • 16. Competition Price (MSRP) Comparison Nissan Leaf MSRP Ford Focus Electric Prius EV $35,200 $39,200 $36,850 •There is an additional $7,500 Federal Tax Credit for Electric vehicles (EVs) purchased in or after 2010. •Our total production for this campaign is 2,500 units.
    • 17. Cost, Budget, Revenue, and Profit Margin • The maximum total sales forecast for this campaign is 92,125,000 USD ($36,850 x 2,500 units). • In regard to the fix cost we consider 100% financing of our required initial investment. • Our “fixed cost per year” is based on our “capital cost per year” and Time Value of Money (TVM).
    • 18. Fix and Variable Costs • Our fix cost is about 55% of our COGS and the rest is our variable cost at %45 of COGS. • Our total cost of goods sold (COGS) is at 40% of our sales price including various costs during this campaign. • Our profit margin is 60% of our sales price since we have a direct sales approach during this campaign. The profit margin would decrease to 35% when we go back to our normal supply chain method.
    • 19. Sales Forecast (Production Unit) • We expect to see a rapid increase in sales of electric car in general considering the enormous amount of investment by federal and local governments as well as privet sectors in infrastructure. • Our sale forecast would be 2,500 units during this campaign, and for the 2nd year we predict 20,000 units sales and for the 3rd year we expect to sell around 70,000 units.
    • 20. Expense Forecast (Costs) • We expect to have a steady decrease in our total cost of goods sold (COGS) in the future considering: • Economies of Scale • Suppliers spare parts price decline • Learning Effect
    • 21. Conclusion and Recommendations • We believe we have a great product to offer since: • Toyota Prius is the world's first mass-produced green car. • Toyota Prius is in the market since 1997 for almost 15 years. (Very high brand awareness) • In 2011 Toyota Prius family was the 3rd Best-Selling Vehicle Line in the World in term of number of vehicle sold.
    • 22. Conclusion and Recommendations • Huge saving in Energy Costs per Mile gasoline-powered vehicles $0.12 vs. $0.025 BEV (One Fifth) • Federal Tax Credit $7,500 • 0-60 mph in just 7 seconds • Zero Emissions Vehicle
    • 23. REFERRENCES Becker, T. A. (2009) Electric Vehicles in the United States A New Model with Forecasts to 2030, retrieved from: http:// cet.berkeley.edu/dl/CET_Technical%20Brief_EconomicModel2030_f.pdf Clancy, H. (2012). 7 trends driving electric vehicles in 2012. Retrieved from http://www.zdnet.com/blog/green/7-trendsdriving- electric-vehicles-in-2012/19665 Deloitte Global Services Limited. (2011). Fuel prices will be tipping point for U.S. electric vehicle consideration: Deloitte Retrieved from http://www.deloitte.com/view/en_GX/global/ e3411d9873a6f210VgnVCM1000001a56f00aRCRD.htm Deloitte Global Services Limited. (2011). Unplugged: Electric vehicle realities versus consumer expectations. Retrieved from http://www.deloitte.com/assets/DcomUnitedStates/Local%20Assets/Documents/us_auto_DTTGlobalAutoSurvey_ElectricVehicles_100411.pdf Hofstetter, D. (2011). Electric Vehicles 2012: Technology, Economics, and Market. Retrieved from: http://www.greentechmedia.com/research/report/electric-vehicles-2012-technology-economics-and-market/ MetLife. (2009). America’s Gen Y. Westport: Mature Market Institute. Statista. (2012). Estimated U.S. ad spending of Toyota in 2010 by medium (in million U.S. dollars). Retrieved from http://www.statista.com/statistics/192132/us-ad- spending-of-toyota/ Toyota (2012). Service Offering Retrieved from http://www.toyota.com/owners/web/pages/dealers/service-offers Toyota (2012). Service Offering Retrieved from http://www.toyotacertified.com/