10 step marketing plan for toyota rav4 patrick reyes

http://patricklimreyes.blogspot.com/

10 STEP Marketing Plan for Toyota RAV4

Patrick ReyesNovember 2013

1


DisclaimerThis 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.


Steps 1 to 5

Successful and Driven Males…1. RAV4 PTM are successful males with active

lifestyles2. Who need a safe compact SUV, that separates

them from the rest, and demand efficiency3. Can choose CRV & Tucson 4. Gap is elegant style and reliable

after-sales service5. The projected compact SUV

market for 2013 is PHP11.7B


Steps 6 to 10

Looking for the Perfect Drive6. RAV4 has a superior engine and proven track

record in after-sales service7. RAV4 is priced higher for its more superior engine 8. Uses Events & Experiences, Public Relations

and Price Promotions9. Is available nationwide 10. Uses low cost production for superior product

at marginal cost difference


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


Today’s Successful & Driven males’ needs are expansive

6

Self-Actualization

Needs(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

Need to be seen as “having arrived” and successful

Need to belong to car owners

Need a safe car

Need to be a responsible owner and care for the environment


2. Successful & Driven Males’ needs, wants, & demandsSuccessful & 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


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


Jan to Aug 2013 Compact SUV Top Ten Sales

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%

BMW X3 37 1%

Total 5,919 100%

http://bestsellingcarsblog.com/2013/09/26/philippines-august-2013-toyota-vios-breaks-record/

Some models are not on the table (Ford Escape, etc.) and are already phased out

http://bestsellingcarsblog.com/2013/09/26/philippines-august-2013-toyota-vios-breaks-record/


3b.1 Style vs. After-sales Services Position Map

Style/After Sales Services Matrix

Conservative/ Conventional

Radical Sporty Elegant

Consistent

Unpredictable

X5X-

Trail

CX-5

XVForester

Tucson CRV

RAV4

ASX

Sportage


3b.2 Functional Benefit Positioning Map• Although the compact SUV is a niche in the automobile segment, this is a crowded sub-segment• None of the brands used Price or did not highlight it (Tucson and Escape)• None used After-sales services as a benefit as well

Power Comfort Styling Safety PriceFuel Efficiency Connectivity

Toyota RAV4

Honda CRV

Hyundai Tucson

Subaru Forester

Ford EscapeFunctional benefit


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


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


5a. 2012 Car Sales and 2013 Projections

1. Based on NCSB paper on Philippine Automotive Manufacturing Industry 2012 sales totaled 182,000 units

2. CAMPI reports sales of 156,649 units for 20123. 2013 target is 210,000 units, 15% overall is

reachable


5b. From Jan to Aug 2013 Sales1. RAV4 had a market share of 11%2. Roughly 3,000 units of compact SUV for the

remainder of the year3. Plenty of opportunity as only RAV4 and Subaru

Forester launched their new models this year

Top 10 ModelJan-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%BMW X3 37 1%Total 5,919 100%


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


6a. The Toyota RAV4


The RAV4


6a. RAV4 vs. competition


Toyota Motors Showroom


6b. Product DescriptionRAV4 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


7a. Price comparison of the Top 5 Compact SUV

RAV4 Price CRV Price Tucson Price Forester Price Sportage Price

4x2 2.5 Gas A/T 1,357,000CR-V 2.0 V MT 1,275,000.00 Tucson Theta II 2.0L GL 2WD MT 1,018,000.00 Kia Sportage 2.0L 4x2 Gas 6AT 1,188,000.00

4x2 2.5 Gas A/T (W. Pearl) 1,372,000CR-V 2.0 V AT 1,325,000.00Tucson Theta II 2.0L GL 2WD (SU) MT 1,048,000.00 Kia Sportage 2.0L 4x2 CRDi 6AT 1,320,000.00

4x2 2.5 FO Gas A/T 1,581,000CR-V 2.0 S AT 1,390,000.00 Tucson Theta II 2.0L GL 2WD AT 1,068,000.00

4x2 2.5 FO Gas A/T (W. Pearl) 1,596,000CR-V 2.0 S AT (White Orchid Pearl) 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 1,963,000CR-V 2.4 SX AT 1,525,000.00 Tucson R-eVGT 2.0L GL 4WD AT 1,368,000.00Forester 2.0i-L 1,398,000Kia Sportage 2.0L 4x4 Gas 6AT 1,288,000.00

4x4 2.5 Gas A/T (W. Pearl) 1,978,000CR-V 2.4 SX AT (White Orchid Pearl) 1,545,000.00 Tucson R-eVGT 2.0L GL 4WD (SU) AT 1,408,000.00Forester 2.0 XT 1,868,000Kia 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


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


8a. Toyota uses Sales Promotion, Events & Experiences, and Public Relations extensively

2

3

1


8b. PromotionsToyota also provides promos similar to competitors –

low down, low amortization, and financingToyota promotes brand through its Toyota Mastercard


8c. Events & Experiences•World Of Toyota Motor Show• Vios Cup Race


8d. Public Relations• Establishment of a Toyota Technical School


8e. Competitor PromosHonda is… • Packaging itself as having more seats• Also has price discounts• Accessories packages


8f. Competitor PromosSubaru similarly has• Low down payment• Free Insurance• 3-year registration

While none is posted in Hyundai


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


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.


Steps 1 to 5

Successful and Driven Males…1. RAV4 PTM are successful males with active

lifestyles2. Who need a safe compact SUV, that separates

them from the rest, and demand efficiency3. Can choose CRV & Tucson 4. Gap is elegant style and reliable

after-sales service5. The projected compact SUV

market for 2013 is PHP11.7B


Steps 6 to 10

Looking for the Perfect Drive6. RAV4 has a superior engine and proven track

record in after-sales service7. RAV4 is priced higher for its more superior engine 8. Uses Events & Experiences, Public Relations

and Price Promotions9. Is available nationwide 10. Uses low cost production for superior product

at marginal cost difference


10 STEP Marketing Plan for Toyota RAV4

Patrick ReyesNovember 2013

34

10 step marketing plan for toyota rav4 patrick reyes

Education

successful males

rav4 ptm

rest http

b http

sales service rav4

lovesafety needs security

step marketing plan

safe compact suv