GET OUT AND PLGET OUT AND PLAAY!Y!

MONIKMONIKA DE LA DE L A PA PAZ,AZ,

PRESIDENTPRESIDENT

MICHELLE ADAMSMICHELLE ADAMS

JENNIFER BISHOPJENNIFER BISHOP

MARCELLMARCELLA FERNANDEZA FERNANDEZ

LL AAURUR A FISHA FISH

KRISTIE JASPERKRISTIE JASPER

PPAATRICIA MASONTRICIA MASON

CHACHAVVALIN RODSAALIN RODSAWWADDIADDI

LEONOR C. SOLLEONOR C. SOL AA

ALICE WALICE W ONGWONGWOROR AAWWAATT

DR. VDR. V ICTICTORIA SEITZ, ORIA SEITZ,

FFAA CULCULTT Y ADVY ADV ISORISOR

22

TTABLE ABLE OFOFCC ONTENTONTENTSS

I. SITUI. SITUAATION ANALTION ANALYYSIS. . . . . . .5 - 11SIS. . . . . . .5 - 11A. INDUSTRA. INDUSTRY OY O VERVER VV IEWIEW

1. SALES

2. PURCHASING CYCLE

AND SEASONALITY

BB. TRENDS AND CHALLENGES. TRENDS AND CHALLENGES1. INTERNET

C. TC. TOOYYOO TTA'S HISTA'S HISTORORYY1. CURRENT ADVERTISING

2. CURRENT PROMOTIONS

3. CURRENT USERS

4. GEOGRAPHICAL EMPHASIS

DD. C. C OMPETITIONOMPETITIONE.. RESEARCH RESULE.. RESEARCH RESULTTSS

II. PROBLEMS ANDII. PROBLEMS AND0PPOR0PPORTUNITIES. . . 11 -12TUNITIES. . . 11 -12

A. PROBLEMSA. PROBLEMSBB. OPPOR. OPPORTUNITIESTUNITIES

III. MARKETING III. MARKETING OBJECTIVES. . . . . . . . . .12OBJECTIVES. . . . . . . . . .12

IVIV. MARKETING . MARKETING STRSTR AATEGYTEGY. . . . . . . . . 12. . . . . . . . . 12

A. ADVERA. ADVERTISINGTISING1. SALES PROMOTIONS

2. PUBLIC RELATIONS

3. MERCHANDISING

BB. PRICING. PRICINGC. DISTRIBC. DISTRIB UTIONUTIONDD. PRODUCT. PRODUCTE. POSITIONING STE. POSITIONING STAATEMENTTEMENT

VV. B. B UDGETUDGET. . . . . . . . . . . . . . . . . . .13-14. . . . . . . . . . . . . . . . . . .13-14A. SALES PROMOA. SALES PROMO TIONSTIONSBB. PUBLIC REL. PUBLIC RELAATIONSTIONSC. MEDIA ADVERC. MEDIA ADVERTISINGTISING

1. BILLBOARDS

2. INTERNET

3. MAGAZINES

4. RADIO

VV I. ADVERI. ADVERTISING TISING CREACREATIVE. . . . . . . . . . . . .15TIVE. . . . . . . . . . . . .15

A. OBJECTIVEA. OBJECTIVEBB. T. TARGET MARKETARGET MARKETC. KEC. KEY BENEFITY BENEFIT

1. WHY

E. TE. TONE/RONE/R AATIONALETIONALEFF. EX. EX ECUTIONECUTION

1. INTENDED REACTION

G. MANDAG. MANDATTORIESORIESH. TH. TAA GLINEGLINEI. POSITIONING STI. POSITIONING STAATEMENTTEMENT

VV II. MEDIA PLII. MEDIA PL AN. . . . . . . . . . . . . .15-17AN. . . . . . . . . . . . . .15-17A. OBJECTIVEA. OBJECTIVEBB. STR. STR AATEGYTEGY

1.MEDIA MIX

2. RATIONAL

3. MEDIA TACTICS

C. FLC. FLOO W CHARW CHARTT

IX. INTERNETIX. INTERNET. . . . . . . . . . . . . . . . . 17-18. . . . . . . . . . . . . . . . . 17-18A. GAME/SITE DEA. GAME/SITE DE VELVELOPMENT OPMENT BB. WEB P. WEB PAA GESGES

X. SALES PROMOX. SALES PROMO TIONS. . . . . . . . . . 19TIONS. . . . . . . . . . 19A. ECHO CA. ECHO C ONCERONCERTTBB. FREE CD TEST DRIVE. FREE CD TEST DRIVEC. INTERNET GAMEC. INTERNET GAMEDD. ECHO ADVENTURE. ECHO ADVENTURE

XI. PUBLIC RELXI. PUBLIC RELAATIONS. . . . . . . . . . 20TIONS. . . . . . . . . . 20A. TA. TOO YYS FOR TS FOR TOO TTSSBB. T. TOOYYS FOR TEENSS FOR TEENSC. TC. TOO YYS FOR TREESS FOR TREES

XII. MERCHANDISING. . . . . . . . . . . .20XII. MERCHANDISING. . . . . . . . . . . .20

XIII.CXIII.CAMPAMPAIGN EAIGN E VVALALUUAATION. . . . . .20TION. . . . . .20

XIVXIV.APPENDIX. . . . . . . . . . . . . . . 21-33.APPENDIX. . . . . . . . . . . . . . . 21-33A. TA. TABLEABLEBB. BILLBO. BILLBOARD ADSARD ADSC. PRINT ADSC. PRINT ADSDD. R. R ADIO SCRIPTADIO SCRIPTSS

XX VV. BIBLIOGR. BIBLIOGR APHYAPHY. . . . . . . . . . . . . .34. . . . . . . . . . . . . .34

33

SITUSITUAATION TION ANALANALYYSIS SIS

INDUSTRINDUSTRY OY O VERVER VV IEWIEW“The subcompact market faces many challenges in thenear future.” (Toyota Rule Book) Many factors threaten to slowthe subcompact market’s growth, such as growingcompetition and increased prices. Further, moreconsumers are turning to newer larger vehicles and newerused cars instead of subcompacts. While truck and carsales were considered good in 1998, the growingpopularity of the truck market threatens passengervehicle sales. Currently, the truck market consists ofSUVs, pickup trucks, and mini-vans.

SS ALESALESWhile the subcompact market is the second largestmarket in the industry, growing truck and SUV segmentsare reducing its share.

PP URCHASINGURCHASING CC YY CLECLE ANDAND SS EASONALITEASONALIT YYThe average American buys a new car every 2 years.Based on Ward' 1995 automotive year book, the top 5selling months for automobile purchases, includingdomestic and import automobiles, include:1. June $852,873 9.8%2. May 825,264 9.5%3. August 806,429 9.3%4. March 798,808 9.2%5. July 721,374 8.4%

46.2%

TRENDS AND CHALLENGESTRENDS AND CHALLENGESAdditionally, the growing used car market has impactedsubcompact sales with declining sales in recent years. However, new car leasing, the industry’s latest trend hashelped slow this decrease.Further, due to the increasing numbers of high qualityused cars, pre-owned vehicles are being purchased at theexpense of the subcompact market.

Moreover, price, a major consideration among thesubcompact market, has increased by 30% between1992 and 1997. In fact, “price is consistently the topreason for not purchasing a new vehicle.” In addition, “giventhe price sensitivity of this market” economic stability isalso an important consideration.

TT HEHE II NTERNETNTERNETThe number of American households with Internet accessis growing and with it car buying on-line. By 1997, nearlyhalf of all brokered new-car sales were initiated bycompanies like Auto-By-Tel. The market research firm,Find/SVP, found that in 1997 2% of the 15 million newvehicle sales and 33 million used vehicle sales wereconducted on-line. In 1998, two million of the 15.1 millionlight vehicles sold last year were also purchased throughthe Internet, according to Ross Roberts, Ford Divisiongeneral manager. People without the time to drive fromdealer to dealer, who want all the information(e.g.,product, pricing, finance, insurance, accessories, etc.)in one location are potential Internet customers.

As shown in the table below, in 1996 only 10% of newvehicle purchasers used the Internet to assist withpurchase decisions. This is expected to more than triplein the year 2000. Find/SVP predicts that 25% of saleswill be initiated electronically by the year 2000.

Research conducted at a southern California universityfound that 82% of the respondents surveyed would usethe Internet to gather information about autos. Of theserespondents, 24% would use the Internet to purchase avehicle. The Internet is an effective marketing tool thathelps create awareness, allow customers to learn moreabout products, and can be used to introduce newvehicles before they actually appear in dealerships.

TTOO YYOO TTA--HISTA--HISTORORYYToyota Motor Corporation was established in 1937 andbegan selling cars in the United States by 1957. Thecompany operates a joint venture with General Motorsand is one of the largest auto-makers operatingworldwide. Toyota currently employs over 23,000 U.S.workers in research, design, manufacturing, sales, andfinance and builds its vehicles in 25 other countries fromCanada to Kenya to the U.K.(Toyota Motor Sales, U.S.A., Inc.).

Toyota has strong market share in both domestic andforeign auto markets. Passenger cars, trucks, and busesaccounted for 90% of fiscal 1998 revenues; salesfinancial business was 5%; while industrial vehicles,housing, and communication equipment/servicesaccounted for 5%. Moreover, the company has 261consolidated subsidiaries worldwide. In 1998, overseassales accounted for 57% of revenues while North Americaaccounted for 34.4%

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On-Line Shopping of New Vehicle: Percent of New Vehicle Purchases

Pessimistic Realistic Optimistic

1996 10% 10% 10%

1997 15% 15% 15%

1998 projected 22% 24% 26%

1999 projected 28% 33% 41%

2000 projected 34% 55% 64%

Source: JD Power

0.0

1.0

2.0

3.0

4.0

1988 1990 1992 1994 1996 1998

SSuubbccoommppaacctt SSaalleess iinn MMiilllliioonnss ooff UUnniittss:: 1988-1998

With the addition of recently opened facilities in Indianaand West Virginia, Toyota’s total investment in Americahas grown to nearly $8 billion . Since Toyota beganmanufacturing vehicles in the U.S., nearly every dollarearned by U.S. operations has remained in the country inthe form of payrolls, purchases, plants, and otherfacilities (Toyota Motor Sales, U.S.A., Inc.).

In the 1980’s and 1970’s, Toyota created a reputation ofreliability, dependability, and quality. This was due todelivering economical and well-built cars in a time whendomestic auto manufacturers were producing vehicles ofpoor quality and with poor customer service (Toyota MotorSales, U.S.A., Inc.).

Among Baby Boomers, Toyota’s reputation throughoutthe 1980’s was of well-built and inexpensive cars. In the1990’s, Toyota sought to produce more luxurious vehicleswith more carrying capacity. This increased prices.Although Toyota maintains a strong reputation asmanufacturing dependable and reliable vehicles, theaffordability of its cars seems questionable amongentry-level subcompact car consumers (Toyota Motor Sales,U.S.A., Inc.).

CC URRENTURRENT AA DVERDVER TISINGTISINGToyota has tried to maintain an image of quality,dependability, and reliability throughout the years.Nevertheless, preparing for 1999, Toyota needed animage that would help customers differentiate it fromother brands.

In September 1997 the "Toyota Everyday" campaign madeits debut, replacing the "I love what you do for me"campaign. The new commercials focused on theconsumers and how Toyota vehicles fit in their lives. Therock classic "Everyday People," popularized in the 1970'sby Sly and the Family Stone, is the theme song forToyota’s current ads. This theme reaches Baby Boomersthrough the use of nostalgia and reminds them thatToyota is there for them everyday. More than a vehicle,Toyota is a company that cares about its customers andtherefore focuses on providing means to help them meettheir life’s needs. This is the message Toyota is trying tocommunicate.

This campaign began on Friday, September 12 with 30 and60 second commercials on network television stationsand print ads running in USA Today and the Wall StreetJournal. The initial flight concluded on September 24 whena new flight began featuring the 1998 Toyota Corolla. Thisran until October 15. The flight for the Toyota Siennaminivan ran from October 16 until early November. All adsincorporated the Everyday theme.

Former themes included "I love what you do for me" whichran from 1990 until 1997 and "People Drive Us" which waspart of the corporate advertising campaign that ran inMay 1997.

CC URRENTURRENT PP ROMOROMO TIONSTIONSSome examples of Toyotas most recent promotionsinclude the following:

- The Corolla Infoseek Sweepstakes. This ran in theInfoseek search engine from September 26 to October10. More than 70,000 individuals entered.

- The Twenty-fifth Anniversary Toyota Atlantic Championship Sweepstakes. This ran from May 30 toAugust 25, 1998. To enter the sweepstakes, people hadto watch the KOOL/Toyota Atlantic Championshipautomobile races and call a toll free number naming the"Driver of the Week" announced on the program.

- Owners@Toyota. This is a website for Toyota ownersSome of its features include:

* Free e-mail services* The 100,000-Mile Club (This includes member's

personal web pages.)* FAQ's, service manuals, etc.* Merchandise, special offers, and discounts.

Because Web users tend to be younger, better educated,and possess higher incomes than former generations,the Internet is an excellent medium to reach Echo’starget audience. The Toyota web site receives over700,000 hits with about 10,000 to 12,000 leadsgenerated each month. About four percent of theseleads result in sales.

55

CC URRENTURRENT UU SERSSERSBABY BOOMERSThe majority of Toyota’s current users are Baby Boomers,individuals born between 1946 and 1964 and between theages of 34 to 53. Baby Boomers grew up in an age whenthe economy seemed secure despite a few recessions.Moreover, Baby Boomers had a greater sense of financialsecurity when compared with other generations. Becausethis group had time to establish themselves in theircareers, this resulted in more discretionary income lesslikelihood of job changes compared to youngergenerations.

Furthermore, environmental concerns are not as high apriority among Boomers as they are with youngergenerations. They do not see disposal of productpackaging as a major concern. Moreover becauseBoomers can afford them, not because they areproficient with them, they are more likely to own highquality, high tech items.

Many Boomers are becoming grandparents (about 6million by April 1995). Because of this transition,purchasing patterns will be affected and because of theirgrowing years are more likely to make purchases based onnostalgia.

Due to the onset of middle age, light exercise, such aswalking, and healthy eating habits are trademarks of thisgeneration. Baby Boomers are also more likely than olderor younger generations to be somewhat careless abouthow they spend their money. Baby Boomers were not asexposed to the vast array of advertising that today’syounger generation is, and hence are not as indifferent toadvertisers constant messages as Baby Busters.

BABY BUSTERSBaby Busters, a.k.a. Generation X, are individuals bornbetween 1965 and 1979 and are currently between theages of 19-34. This generation has grown up in anenvironment that has been constantly changing.

Baby Busters face less future financial security from thegovernment in terms of social security and healthbenefits. Further, this generation has been trained not todepend on or trust the government and corporateinstitutions.

Baby Busters enrollment in higher educational institutions hasincreased due to the growing competition among well payingjobs. Individuals no longer stay with one company for therest of their lives. Consequently, this generation haswaited longer to marry, sometimes lives at home longer,or chooses to co-habitate.

Compared with Boomers, Baby Busters adapt and aremore accepting of differences in lifestyles, races, andfamily structure. In fact, they are the first generation toaccept individuals of mixed race as well as mixed racemarriages. Individuality is valued and persons who standup for what they believe in are greatly admired amongBusters. In addition, Generation X has been immersed inan age that is exploding with such technologicalmilestones, as the Internet. Busters have acceptedthese changes easily, having grown up computer literate.

Raised in an environment where it is common for bothparents to work or to live with a single parent, this groupis self-sufficient and are smart consumers not easilyimpressed by advertising gimmicks. Because they areexposed to so much advertising, Baby Busters are toughto reach through traditional methods. They arereasonable about what they buy, but will take risks if theyfeel it is worth it. Many businesses are now looking at theBaby Busters as a profitable new or market.

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GG EOGREOGR APHICAPHIC ALAL EE MPHASISMPHASIS

A review of the top twenty demographic markets for carsales by population aged 18-33 (not indexed) wouldsuggest the following geographic emphasis for anadvertising campaign.

Eastern (E) 42%Central (C) 31%Mountain (M) 6 %Pacific (P) 21%

NOTE: While not ranked in the same order the toptwenty automotive markets correspond to the top twenty DMA”S.

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GGEEOO AARREEAA TOP 20 DMAs by population -Not Indexed ##HHOOUUSSEEHHOOLLDDSS GGEEOO TTOOTTAALLSS %% ooff TTOOTTAALL

C Indianapolis 68,321C St Louis 73,111C Minneapolis 106,760C Detroit 108,809C Houston 121,688C Dallas 156,852C Chicago 199,010 834,551 0.30583682E Miami 74,256E Tampa 77,066E Cleveland 93,434E Atlanta 128,909E Boston 136,080E Washington DC 143,430E Philadelphia 156,373E New York 345,582 1,155,130 0.42331899M Denver 84,349M Phoenix 86,190 170,539 0.062497206P Seattle 103,822P SanFrancisco 125,544P Los Angeles 339,160 568,526 0.208346984

Total Population 2,728,746 2,728,746 1

CC OMPETITIONOMPETITION

FORD MOFORD MO TTOR OR CC OMPOMPANYANY"BUILT TO LAST"

In Detroit on June 16,1903, theFord Motor Company, foundedby Henry Ford, introduced the

first public automobile, the Model-T. With a wide range ofcars, trucks, vans, and SUV's, Ford has come a long waysince the introduction of the Model-T. For many years,Ford’s most popular subcompact vehicle has been theFord Escort.

CC URRENTURRENT OO UTLUTL OOKOOKFord is currently the world’s second largest auto-makerand produces sub-compact vehicles, mid-sized cars,pickup trucks, full-sized trucks, vans, and SUV's. Fordhas a wide and growing share in the truck and SUVmarket. In fact in 1996, the Ford F-series was rated asthe best quality truck on the road (Car and Driver). FordMotor Company brands also include Lincoln, Mazda,Mercury, Aston Martin, and most recently Jaguar andVolvo. Ford purchased Volvo because of its world-classreputation for safety, quality, durability, andenvironmental responsibility.

In preparation for the turn of the century, Ford is planningto introduce a new sub-compact vehicle that will replacethe Ford Escort. This new car has a larger, more stylishcab and a state of the art body frame. With lowemissions, it is environmentally responsible. By replacingthe Escort with this new sub-compact vehicle, Ford willcease to cannibalize its own products. The launch of thisnew unnamed sub-compact automobile is scheduled forSeptember 1999.

MM ARKETINGARKETINGFord has wide reach and frequency in magazines likeHarvard Business Review, Fortune, Popular Mechanics, Car andDriver, Sports Illustrated, Working Woman, Time, and CountryLiving, as well they advertise during prime time on networktelevision programs.

The slogan "A better environment: Driven by you, Driven byus" is used in conjunction with various communityprojects in order to position Ford as an environmentallyconscious company. Ford undertakes community projectssuch as Heal the Bay, Adopt-a-Beach, and Coastal CleanUp. Ford is also partners with the New CommunityCorporation and supports Habitat for Humanity's "BlitzBuild" project.

NISSANNISSANMOMO TTOR OR CC ORPORORPOR AATIONTION"ENJOY THE RIDE"

Forty years ago YutakaKatayama became very interested in the American autoindustry, particularly with respect to the sports-carmarket. This interest led to the company known today asNissan. Today Nissan manufactures trucks, cars, andSUV's. Nissan has also added a luxury auto division calledInfinity.

CC URRENTURRENT OO UTLUTL OOKOOKWhile Nissan will not be introducing a new sub-compactcar model for 1999, it will continue to manufacture thestylish and "affordable sedan", the Sentra. The Sentracomes equipped with multi-link suspension, a 115horsepower engine, and is tuned to get 29 city/ 39highway MPG (manual), and 27 city/ 36 highway MPG(automatic). The Sentra is priced at about $12,000.

MM ARKETINGARKETINGNissan’s magazine advertisements in Ebony, Road & Truck,and Car and Driver. are neither as frequent or in as manymagazines as Ford and Toyota. Most televisionadvertising is shown throughout various day parts onthe major networks, but most are concentrated duringprime time.

HONDA MOHONDA MO TTOR COR C OMPOMPANYANY"GIVING SHAPE TO DREAMS OF THE FUTURE"In 1948, Soichiro Honda formed the Honda MotorCompany. Initially, Honda started out as a motorcyclemanufacturer with the Dream D-Type as the firstmotorcycle produced by them. Since the introduction ofthe Dream D-Type, Honda has grown not only in the autoindustry, but also in technology.

CC URRENTURRENT OO UTLUTL OOKOOKHonda maintains a large percentage of the sub-compactmarket share, currently producing over two million carsper year. Future Honda models will be more fuel efficient,safe, and environmentally friendly. Honda plans to launcha new S2000 Prototype sports car for 1999. The car willhave low emissions, a 6-speed manual transmission, anda 2-liter direct-injection 4-cylinder VTEC engine. Hondawill continue to sell the popular Civic into the new century,with only slight modifications.

MM ARKETINGARKETINGHonda’s magazine advertisements are not placed in asmany magazines as Ford and Toyota, yet they doadvertise in magazines such as Sports Illustrated andHome and Garden. Further television advertisements areshown on major networks, focusing mostly during primetime.

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VVOLKSWOLKSWAA GEN BEETLEGEN BEETLE"DRIVERS WANTED"

Volkswagen of America Inc.’sheadquarters are in Auburn Hills,Michigan. This subsidiary ofVolkswagen AG is the fourthlargest producer of passengercars in the world. In the United

States, Volkswagen has sold more than 10 million carsand is the top-selling European importer. Volkswagen’sU.S. sales have began to increase after a decline of about50,000 units sold in 1993.

The Volkswagen Beetle was introduced in the spring of1998 in an effort to attract a new and younger targetmarket. It was named the North American Car of theYear in January 1999 and is currently in strong demand.However, while it is classified as a subcompact vehicle, itis priced around $15,000 - $18,000. Volkswagen spent$35 million to launch this subcompact vehicle in theUnited States and is aiming to produce 160,000 unitsthis year. The Beetle, which has outsold every other carin history, was redesigned and updated to "fit 1990’stastes and technologies."

The advertising campaign launching the VW Beetle,concentrated on the modernity of the car, yet at thesame time "drawing attention on its established image".VW used The Beetle to raise the profile of its brand namein order to help win back American car buyers, bothBoomers as well as Busters. The ads used themes like"Less Flower, More Power," "The engine is in the front, butits heart's in the same place," and " If you sold your soul inthe '80s, here's your chance to buy it back."

Volkswagen currently advertises in magazines targetingBaby Busters, such as, GQ, Seventeen and Rolling stone.Ads are usually 4 color, one or two pages and feature theBeetle in a white background with the VW theme and logo.

Volkswagen’s goal is to sustain sales volume of morethan 200,000 cars annually in the United States in thenext few years.

DODGE NEONDODGE NEON"BECAUSE FUN IS GOOD"

In 1914, Dodge Brothers, Inc.was formed and was lateracquired by Chrysler in 1928.Recently, Dodge Chryslermerged with Mercedes Benz.

Dodge has led the way instyling and engineering

advancements; one example is the first 140 horsepower"Red Ram" Hemi V8 engine introduced in the 1953Coronet. The Dodge Neon was introduced in 1994 and because of the its uncommon combination ofperformance characteristics and affordability, it easilycaught the attention of car consumers selling 60,000units. The Neon reached a sales record in June 1998when 13,057 units were sold. The Neon is sporty, quick, and fun to drive and include fourdifferent models: Neon, Neon Sport, Neon R/T (road andtrack), and Neon ACR. Some of its features include front-passenger air bags, a spacious interior, six-speakerstereo system, a 2.0 liter SOHC valve engine with a peakof 132 horsepower, and low engine noise and vibration.With an M.S.R.P of $13,000, the Neon is Chrysler’s leastexpensive car. Dodge introduced a special-edition NeonR/T in 1998 and 1999, and a new R/T will be available bythe year 2001. Their goal is to offer the small car ownersomething he or she would never expect from anaffordable subcompact vehicle. Some of the new R/T’sfeatures include a 150-horsepower, 2.0-liter SOHCengine, full-frame doors, front and rear suspension,improved brakes, a larger interior, and a completelyredesigned instrument panel.

CC URRENTURRENT OO UTLUTL OOKOOKDodge is looking to build a tradition of "power, style andrugged dependability” by continuing to manufactureinnovative, technologically advanced, fun-to-drive, yeteconomical, vehicles that meet the needs of the BabyBuster generation. With the Neon 2000, Dodge hopes tofulfill consumer expectations of the future.

Employing 30 second spots, Dodge advertises the Neonon the Comedy Channel as well as Fox and the WBnetwork channels during primetime.

SASATURN TURN "A DIFFERENT KIND OF COMPANY"

Saturn was established as asubsidiary of General Motors inJanuary of 1985 and their firstautomobile was produced in1990. Saturn has sinceproduced more than one millionvehicles and distributes them in

over 325 retailers across the United States.

The promotion of family and down to earth affordabilityhas made Saturn a popular sub compact vehicle. In 1994,Saturn owners began the tradition of mingling once ayear with other Saturn owners. Each year, this weekendouting attracts thousands of Saturn owners for fun,food, and games. The 1999 Saturn Homecoming is inSpring Hill, Tennessee on July 30 and 31, 1999.

As part of Saturn's commitment to its customers, everySaturn comes with a 30-day/1,500 mile Money-backGuarantee if the owner is not satisfied. Customer serviceincludes 24-hour Roadside Assistance available sevendays a week; help is a toll-free call away. In addition, eachnew Saturn owner receives a credit card-type key able tofit easily into a wallet or purse for use should the needarise. The affordability of the Saturn is evident in thepricing of their standard models as shown below:

- SL Saturn's compact 4-door sedan: $10,595 - $12,755- SW Saturn's compact 4-door wagon: $12,295 - $14,255- SC Saturn's compact 3-door coupe: $12,445 - $15,005

CC URRENTURRENT OO UTLUTL OOKOOKSaturn's SL sedan is the car maker's lowest pricedentry-level economy car. This model will offer three newcolors in 1999. The SL is available in three versions: theSL, SL1 and SL2. Features include body and side panelsmade of a ding and dent resistant polymer material.The SL1 and SL2 include additional features whencompared to the SL including leather interior or powerwindows. The SL1 and SL2 engines have also been refinedto provide improved fuel efficiency.

99

Safety features include dual airbags, child safety locks,

and an optional anti-lock brake system (ABS) with

traction control. A 1.9-liter 4-cylinder engine powers

both the SL and SL1 models, while the SL2 has a DOHC

version with 124 horsepower.

Standard features include an AM/FM stereo, a rear

window defroster, intermittent wipers, tinted glass, and

a split-folding rear seat. Storage areas and dual cup-

holders are included in both the front and rear consoles.

A CD changer, power windows and door locks, air

conditioning, leather seats (SL2 only), cruise control, and

a power sunroof are available options.

Saturn takes a unique approach to many aspects of its

automotive design processes, manufacturing, and

marketing. Moreover, all Saturn employees are involved in

the creative process and take pride in their

craftsmanship. With a focus on the ownership experience,

Saturn will continue to promote a sense of kinship

between Saturn owners and demand for pre-owned

Saturns.

MARKETING

Starting in November, all 1999 Saturn coupes will include

a feature not found on any other coupe-a third door. A

driver's side "Rear Access Door" provides accessibility to

the rear seat area for cargo loading and unloading and

child seat installation. This third door also will help meet

the needs of the disabled community, particularly with

respect to those requiring a wheelchair.

Saturn's Mobility Program reimburses owners for the cost

of passenger mobility equipment, including installation on

their new or used Saturn, for an amount up to $1,000.

Information is conveniently located on Saturn's Internet

home-page regarding pricing, technological specifications,

dealer locations, and even a game allowing one to load a

3-door coupe in 45 seconds.

RESEARCH RESEARCH RESULRESULTTSS

A research study was conducted in a southernCalifornian university to determine how Toyota is seen bythe target market.

Respondents included male and female college studentsfrom diverse backgrounds between the ages of 18-33,with an annual income under $15,000.

Findings indicated that 17.8% of the respondentscurrently owned a Toyota or considered buying one. Whenasked to evaluate Toyota's attributes, respondentsranked Toyota high in reliability, affordability, andtrustworthiness.

In the consumer ranking system, Toyota ranked numbertwo among its competitors, Dodge, Ford, Honda,Volkswagen, Saturn, and Nissan. Honda ranked first, VWthird, Dodge fourth, Nissan fifth, Ford sixth, and Saturnseventh. Among the target market, Honda rankedsignificantly higher than any other manufactured carsurveyed regarding brand image.

The primary factors that influenced automobilepurchases were the options that were included in theprice package. Air conditioning ranked highest among therespondents (96.6%), followed by power steering(89.8%), am/fm radio (83.8%), power locks (81.8%), CDplayer (72.3%), power windows (72.3%), sun roof (59.5%),and theft alarm (59.5%).

PROBLEMS AND PROBLEMS AND OPPOROPPORTUNITIESTUNITIES

PROBLEMSPROBLEMSFollowing is a list of problems facing the subcompactmarket:

The luxury and subcompact SUV, pickup truck, and mini-van markets are growing at the expense of the subcompact passenger car market.

The "ever-expanding supply of high quality used vehicles" are also being purchased at the expense of the subcompact market.

Lower gas prices are inducing car buyers to purchase less fuel efficient luxury vehicles.

Increasing subcompact passenger car competition has limited Toyota’s subcompact vehicle growth.

The subcompact passenger car market is becoming more expensive; e.g., a 1992 subcompact car cost $11,298, while the 1997 subcompact car cost $14,700.

The lack of advertising targeting Baby Busters has hurt subcompact sales.

Toyota’s unclear positioning has left car buyers without a clear image of the company

1010

OPPOROPPORTUNITIESTUNITIESFollowing is a list opportunities presented to Toyota:

Toyota's ECHO offers many new features, all of which are associated with more luxurious models.

The growing disposable income among Baby Busters, $888 billion in 1994 and growing at a rate of 10% annually, increases Toyota's chance of gaining market share among this wealthy generation.

Skeptical towards today's advertising, Toyota has the perfect opportunity to create an innovative advertising campaign leaving the Baby Busters less pessimistic towards its new sub-compact vehicle

through the use on non-traditional advertising.

Research shows that Toyota has a trustworthy and favorable image among the primary target market.

Echo is an environmentally friendly car with recyclable parts and low emissions.

MARKETING MARKETING OBJECTIVESOBJECTIVES

To create favorable attitudes regarding Baby Busters' and Net Gens' perceptions regarding

Toyota by 40% in one year.

To create awareness of ECHO among 80% of young adults in one year.

To increase Toyota’s web site visits by 50% in one year.

To achieve sales of 5,000 units per month within the first year.

MARKETINGMARKETINGSTRSTR AATEGYTEGY

ADVERADVERTISINGTISINGObjective:-Use both traditional and non-traditional forms of mediato establish Echo as a fun and sporty sub-compactvehicle

SS ALESALES PP ROMOROMO TIONSTIONS

Objective: Sales promotions will be used to promote trial use and to induce visits to Toyota's web site and dealerships among Baby Busters 18-34. In addition, sales promotions will be used to expand the image of Toyota to appeal to the target market, while not alienating Baby Boomers and promote test drives and sales of Echo.

PP UBLICUBLIC RR ELEL AATIONSTIONS

Objective: Public relations will be used to promote good will among the community and to instill loyalty among customers. In addition, corporate advertising will be used to promote Toyota’s Echo recycling and environmentally friendly design.

MM ERCHANDISINGERCHANDISING

Merchandising will be used to promote awareness and stimulate brand loyalty among the market.

PRICINGPRICINGThe Echo needs to be priced to compete with othersubcompact cars with comparable features.

In addition, Echo should be positioned so that itsprice and features do not cannibalize Toyota's other sub-compact models such as the Corolla.

DISTRIBDISTRIB UTIONUTIONThe Echo is Toyota's opportunity to enter the Internetmarketplace. The Echo should be distributed throughtraditional outlets such as dealerships as well as non-traditional outlets including the Internet.

PRODUCTPRODUCTToyota should extend the Echo product line to include ahatchback, a convertible and an LS model with upgradeoptions. For example cruise control, sun roof, AM/FMRadio with CD Player should be options from whichpotential consumers may choose.

POSITIONING STPOSITIONING STAATEMENTTEMENTA new product requires more definition. The ECHO must

be positioned, i.e., defined, in order to address consumer

needs. That is, ECHO will need to be defined in order to

address purchasing decision criteria:

The Echo is a fun, sporty designed, inexpensive and high quality vehicle.

Echo has features normally found only in higher quality cars.

The Echo is a sub-compact vehicle sporting a roomier interior design.

1111

BB UDGETUDGETPRODUCTION PRODUCTION (8(8 .0%).0%) : $2,400: $2,400,000,000

PROMOPROMOTIONS :TIONS :

EE CHOCHO CC ONCERONCER TT TTOUROUR : : - Free ECHO Drawing: $30,000- Concert Venues:

Hollywood Bowl, CA $200,000Madison Square Gardens NY: $200,000UCI Pavillion, Il $7,500

-BandsCherry Poppin’ Daddies $50,000Hole $120,000Korn $80,000Lauren Hill $85,000Third Eye Blind $30,000

- Total Concert and Free ECHO: $802,500

TT ESTEST DD RIVERIVE ECHOECHO, G, G ETET AA FF REEREE CD:CD:- 60,000 units $9,950- CD Packaging: $96,000- Total CD's: $105,950

EE CHOCHO AA DVENTUREDVENTURE- Costa Rica: 7 nights

30 Winners $2,595: Total Costa Rica: $77,850

- Australia: 14 days30 Winners * $4,390:Total Australia: $131,700

-Total Adventure Cost: $209,550

EE CHOCHO II NTERNETNTERNET GG AMEAME MM ERCHANDISEERCHANDISE : : - T-shirts * 500,000 = $1,775,000- Mouse Pads * 100,000 = $182,000- Auto Mugs * 50,000 = $499,500- Auto Clipboards * 10,000 = $27,200- Free ECHO Drawing * 1 = $10,000- Total Merchandise: $2,493,700

TTOO TTAL PROMOAL PROMOTIONS TIONS (12.04%)(12.04%) : $3,611,7: $3,611,70000

PUBLIC RELPUBLIC RELAATIONS: TIONS:

TTOO YY SS FORFOR TTOO TT SS ::- Advertising: $200,000- Team Toy Volunteer Gifts: $200,000

TTOO YY SS FORFOR TT EENSEENS : : - Brochures: $100,000- Advertising: $200,000- Team Toy Volunteer Gifts: $300,000

TTOO YY SS FORFOR TT REESREES : : - Contributions for 200,000 Trees $36,000- Advertising: $200,000- Team Toy Volunteer Gifts: $200,000

TTOOTTAL PUBLIC RELAL PUBLIC RELAATIONSTIONS(4.7(4.79%)9%): $1,436,000: $1,436,000

ADVERADVERTISING: TISING:

BB ILLBOILLBO ARDARD ::Top 20 DMA/month:

- 3 months * $1,017,400 = $3,052,200

TTOO TTAL BILLBOAL BILLBOARD ARD (10(10 .17%).17%) : $3,052,200: $3,052,200

II NTERNETNTERNET ::Alta Vista - Search Engine (altavista.com)

- Continuous, Channel Rotation- 700,000 impressions per month- $25, 000 per month- $25,000 * 12 months = $300,000

Arbor Day - Home Page Links (arborday2000.com)- Continuous, Channel Rotation- 100,000 - 150,000 impressions per month- $4,000 per month- $4,000 * 12 months = $ 48,000

AOL - Search Engine, Internet Provider (AOL.com)- Continuous, Page Rotation- 1,000,000 impressions per month- $20,000 per month- $20,000 * 12 months = $240,000

Car & Driver - Home Page, Page Links (caranddriver.com)

- Continuous, Page Rotation- 1,120,000 impressions per month- $44,800 per month- $44,800 * 12 months = $537,600

E-Music - Home-page, Page Links (emusic.com)- Continuous, Channel Rotation- 500,000 impressions per month- $15,000 per month- $15,000 * 12 months = $180, 000

ESPN Sports-zone - Home-page, Page Links(espn.sportszone.com)

- Continuous, Index Rotation- 500,000 impressions per month- $14,000 per month- $14,000 * 12 months = $168,000

Excite - Search Engine (excite.com)- Continuous, Channel Rotation- 25,000 impressions per week- $1,625 per week- $1,625 * 4 weeks = $6,500 per month- $6,500 * 12 months = $195,000

Hispanstar - Home Page, (hispanstar.com)- Continuous, Channel Rotation-300,000 - impressions per month- $1,680 per month- $1,680 * 12 months = $342,000

Infoseek - Search Engine (infoseek.com)- Continuous, Channel Rotation- 2,000,000 - 2,999,999 impressions per

month- $38,000 per month- $38,000 * 12 months = $456,000

1212

BUDGET CONTINUED:Latinolink - Home-page, Page Links (latinolink.com)

- Continuous, Channel Rotation- 700,000 impressions per month- $4,200 per month- $4,200 * 12 months = $50,400

MTV - Home-page, Page Links (mtv.com)- Continuous, Channel Rotation- 2,000,000 impressions per month- $40,000 per month- $40,000 * 12 months = $480,000

Prodigy - Search Engine, Internet Provider (prodigy.com)

- Continuous, Channel Rotation- 1,000,000 impressions per month- $20,000 per month- $20,000 * 12 months = $240,000

Spin - home-page, Page Links (spin.com)- Continuous, Page Rotation- 500,000 impressions per month- $3,300 per month- $3,300 * 12 months = $39,600

Yahoo - Search Engine (yahoo.com)- Continuous, Key Word Search

15,000 + impressions per month$885 per month$885 * 12 months = $10,620

TTOOTTAL INTERNET BAL INTERNET BANNERS ANNERS (10(10 .95%).95%) : $3,287: $3,287,220,220

INTERNET GAME DEINTERNET GAME DE VELVELOPMENTOPMENT (15%)(15%)

TTOO TTAL CAL C OSTOSTS:S: $4,500$4,500 ,000,000

MM AA GAZINESGAZINES ::- Details:

Full Page, 4-color, 2nd and 4th cover, 12 months12 insertions *($490,260 + $510,804) =

$1,001,064- Teen People:

Full Page, 4-color, 2nd and 4th cover, 12 months12 insertions *($33,464 + $38,916) =

$ 868,560 - Seventeen:

Full Page, 4-color, 2nd and 4th cover, 12 months12 insertions * ($79,570 + $ 85,985) =

$1,986,660- Spin:Full Page, 4-color, 2nd and 4th cover, 12 months12 insertions * ($43,095 + $53,562) =

$1,159,884- Vibe:

Full Page, 4-color, 2nd and 4th cover, 12 months12 insertions * ($51,420 + $53,562) =

$1,259,784- Yahoo Internet Live:

Full Page, 4-color, 2nd cover, 12 months

12 insertions * ($30,285) = $363,420

- YM:Full Page, 4-color, 2nd and 4th cover, 12 months12 insertions * ($73,850 + $79,130) =

$1,835,760TTOO TTAL MAAL MAGAZINE GAZINE (29(29 .11%).11%) : $8: $8 ,475,475 ,132,132

DEALERSHIP BDEALERSHIP BANNERSANNERS-1,000 Dealerships nationwide

$75 per banner (production & shipping)1,000 * $75 $75,000

TTOOTTAL DEALERSHIP BAL DEALERSHIP BANNERSANNERS(.25%)(.25%): $75: $75,000 ,000

RR ADIO:ADIO:- Five 30 second spots/ Friday, Saturday, and Sunday

- 16 weeks

- 80 stations

- Budget per radio station $36,000

TTOO TTAL RAL R ADIO ADIO (9(9 .60%).60%) : $2,880: $2,880,000,000

TTOO TTAL BAL B UDGET: $29UDGET: $29,717,717,252,252

1313

ADVERADVERTISINGTISINGCREACREATIVETIVE

OBJECTIVEOBJECTIVETo get noticed by the target market, build awarness.and trial.

TTARGET MARKETARGET MARKETToyota’s market consists of the following:

- Single men and women age 18-34

- Single parents age 18-34

- household income of $22,000-$25,000

- College graduates

- Accepting of different races

- Savvy consumers who do their homework before making a purchase

- Pragmatic and skeptical of advertising

- Distrust large corporations and government

- Minimalist consumers

- Idealistic in their views

KEKEY BENEFITY BENEFIT- Echo provides functional, economical transportation

that is fun to drive.

RR EASONSEASONS WW HYHY- Larger interior than the C-class Mercedes

- Lexus VTT-i technology engine that couples fuel efficiency and low emissions

- Quick acceleration

- Recyclable parts that are environmentally friendly

- Ergonomically designed instrument panel reducing driver fatigue and eyestrain

- High mileage and low maintenance costs

TTONE/RONE/R AATIONALETIONALEThe tone will imply superiority, spirit, andindividuality. This appeals to the target marketand distinguishes it from the competition.

EXEX ECUTIONECUTIONThe ads should be pictorials depicting a slice of life.

II NTENDEDNTENDED RR EAEA CTIONCTION

“That ECHO looks like fun! Let’s play!”

MANDAMANDATTORIESORIESAdvertisements should include the Web site, logo,trademark, corporate slogan, Echo,, and 1-800-GO4-ECHO.

TTAA G LINEG LINE“Get Out and Play.”

MEDIA MEDIA PLPL ANAN

OBJECTIVESOBJECTIVES- Use media to target 18 to 34 year olds.- Use media nationwide in direct relation to automotive

sales.- Use media to support national promotions.- Use media to support promotions in the top 20

automotive markets. - To use media to support the need for broad coverage.- To use media that will support the creative strategy.

MEDIA STRMEDIA STR AATEGYTEGYMEDIAMEDIA MIXMIXThe media mix will consist of the Internet, spot radio,magazines, and billboards. Internet banners and the EchoAdventure Internet game will be on a continuous schedulefrom September 1999 through August 2000. Nationalprint media, will also be used on a continuous basis duringthe year. Radio and billboard will be on a flighted basisthroughout the campaign period in the top 20automotive markets.

RR AATIONALETIONALE

INTERNET

The Internet is a fast growing medium, used highly byEcho's target market. The number of Americanhouseholds with Internet access is increasing rapidly andis expected to grow further. The Internet provides a non-traditional approach to advertising that is well receivedby Baby Busters. Internet users tend to be younger,better educated, and posse higher incomes whencompared with the U.S. population. This makes it anexcellent medium to reach the target market. Internetbanner ads as well as traditional media will promoteToyota's Web site and game.

1414

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IInntteerrnneett BBaannnneerrss $$33,,228877,,222200 $$33,,228877,,222200

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BBiillllbbooaarrddss $$33,,005522,,220000 $$33,,005522,,220000

DDeeaalleerrsshhiipp BBaannnneerrss $$7755,,000000 $$7755,,000000

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SSaalleess PPrroommoottiioonnss

TTOOYY TTrreekk $$220099,,555500

TTOOYY TToouurr $$880022,,550000

FFrreeee TTeesstt DDrriivvee CCDDss $$110055,,995500

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PPuubblliicc RReellaattiioonnss

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TToottaall PPuubblliicc RReellaattiioonnss $$11,,443366,,000000

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PPrroodduuccttiioonn $$22,,440000,,000000

TToottaall BBuuddggeett $$2299,,771177,,225522

1515

MEDIA FLMEDIA FLOO W CHARW CHARTT

RADIO

Radio is a cost efficient medium that will reinforce

Toyota's messages about the Echo in the top twenty

DMA/s. Because of radios wide coverage and abillity to

meet goals, Toyota will easily create awareness among

their target market. It is the most flexible medium which

will allow Toyota to take advantage of special events or

local promotions.

BILLBOARDS

Billboards, will stimulate curiosity and generate

awareness regarding the Echo Outdoor media has the

lowest cost per thousand, provides 24 hour reach, and is

excellent for promoting new products such as the Echo.

Reach increases rapidly with the use of outdoor media.

With maintained levels of frequency, reach can be as high

as 90 percent.

MAGAZINES

Magazines give Toyota the ability to target specific

market segments with a wide reach and frequency.

Magazines have a long shelf life and have a high

"pass-along" readership. Magazines have excellent color

reproduction and a high quality appearance creating

attractive and credible advertisements that will capture

the reader's attention. Because magazines have

considerable geographical and demographic coverage,

Toyota can use specific magazines targeting niche

groups.

MEDIAMEDIA TTAA CTICSCTICS

MAGAZINESMagazine advertisements will be placed in variousmagazines targeting Baby Busters and Net Genthroughout the duration of the ECHO campaign. Full page2nd and 4th cover 4-color bleed ads will run nationallyeach month in Vibe, YM, Details, Yahoo Internet Life,

Seventeen, Teen People, and Spin.

Print Ads will promote the various sales promotions andpublic relations activities marketing ECHO. The "Get Outand Play" theme will be incorporated into the magazineads.

RADIOThirty-second radio spots will be flighted throughout thecampaign 3 days a week, five times a day (morning andevening drive time) in order to create awareness of ECHOpromotions. Flights will entail 4 and 3 weeks of radioadvertising before and during various promotions.

In addition to R&B and Alternative music stations, aswell as Latino radio programs will be used to create brandawareness among Generation X and Net Gen.

Four stations in each of the top twenty DMAs will beutilized. Moreover, spot local radio ads in the top twentyautomotive markets will be flighted throughout thecampaign preceding the various sales promotions andpublic relations activities designated in this campaign. Intotal, eighty radios stations will be employed to promotethe "Get Out and Play" theme.

BILLBOARDS

Billboards advertisements will be flighted early in thecampaign in order to create awareness and excitement ofECHO's introduction among Baby Busters and Net Gen.

Billboards incorporating the "Get Out and Play" theme willbe placed in the top twenty DMAs. While each of the toptwenty DMAs will be allocated one billboard, oneadditional billboard will be used in New York, Los Angeles,Chicago, Dallas, Philadelphia, and Washington D.C due tothe large number of households in these markets.

In addition to promoting the ECHO theme, billboards willpromote TOY.com and be used as "teasers" enticing thetarget audience.

INTERNETINTERNETGAME/SITE DEGAME/SITE DE VELVELOPMENTOPMENT

II NTERNETNTERNET GG OO ALAL

To begin interaction with the target market, develop

awareness of Echo and stimulate interest in the car.

SS TRTR AATEGYTEGY

To develop a web site that will solicit interaction, develop

relationships portraying fun and to compile data on

potential customers while involving potential and current

customers in all facets of leisure time activities.

This would be accomplished by offering a unique set of

services and information promoting the FUN aspects of

all TOYOTA automobiles while supporting the advertising,

promotions, and public relations of this campaign.

TT HEMEHEME

Get Out and Play!

The suggested URL is www.TOYS.com. All visitors would

be prompted to enter a code seen in print

advertisements which would allow for tracking of

responses. Visitors who do not have an electronic code

would receive the following screen:

To ENGAGE please enter your name, e-mail and

snail-mail address

Press ENGAGE when ready

1616

WEB PWEB PAA GESGESTTOO Y TY T EASERSEASERS

This page would include riddles where the correctresponses would enter visitors for promotional items.Winners would be posted on the site. The following areexamples:

RIDDLEWhat is the TOYOTA that lives forever?

RESPONSEThe Echo

RIDDLEWhat is the happiest TOYOTA?

RESPONSEThe silly ka (Celica)

TTOO Y TY T IMEIME

A chat room would be developed where existing andpotential customers could ask questions of a host. Thiswould allow TOYOTA to monitor market preferences andto develop future campaign themes.

TTOO Y TY T IPSIPS

This would offer visitors driving tips which they coulddown load. Topics would include maintenance, roadhazards, and driving safety.4

TTOO Y TY TOUROUR

This would be a concert series site which would provideschedule information, ticket purchase, and contestregistration. Tour contest winners would be posted onthe site.

TTOO Y TY T REKREK

This web site game should be developed into an edgy, risk-taking scenario utilizing 3-d effects, actionadventure themes and developing the ideal vehicle(anEcho)to complete this road trip. A virtual road tripscenario would support both the sporty image of thecampaign and the associated trips to exotic locations.Games should be designed for a number of levels ofdifficulty and under a variety of scenarios to pique theinterest of potential first time and future customers.

The games would initially be developed for 4 Levels of playwith participants receiving prizes for each level theyaccomplish. Level 1 should teach the visitor how tomaneuver through the game with further levels increasingin difficulty. In order to advance to a higher level, playersshould be asked to evaluate the game experience. Thefollowing are examples of potential questions.

Please evaluate your Level 1 experienceActionVarietyEffectsPlot

As players advance, the game should become moresophisticated and complex. Designs must be continuallyupdated, expanded, and enhanced to retain participationThe site should be for entertainment purposes only asany attempt to sell the participants through the gamewill result in immediate rejection. Later sites or pagescould be developed to allow visitors to participate indesign (color, interior appointments, standardequipment) of the Echo and future Toyota models.

TTOO Y TY TOGSOGS

This page would be developed for the merchandising ofTOY Team merchandise and discounts on internet paraphernalia. Merchandise would be the same as thoseoffered in sales promotions and would be available on-lineand delivered by mail. Items would include auto mugs,mouse pads, t-shirts, and auto clip-boards. These wouldadd minimally to revenues but not to any appreciableamount in the near future.

TTOO Y TY T RIPSRIPS

TOYOTA should partner with a major travel company(travel agent or airline) to offer discounted vacationpackages. The trips should be to exotic locations focusingactive lifestyles. This will dovetail nicely with proposedvacation promotions for Echo and will allow TOYOTA tobecome an integral part of the intended market’slifestyle. Information regarding eligibility to enter for freetrips would be available on this site. This will also supportthe TOY Trek game as well. Finally, the site would postpictures of the winners of the vacation promotions.

TTOO Y TY T RIVRIV IAIA

This would be a special bulletin board where TOYOTAowners could post interesting things they have done in orwith their TOYOTAs. This site must be monitored forinappropriate content

1717

SALESSALESPROMOPROMO TIONSTIONS

"WIN A FREE ECHO""WIN A FREE ECHO"CC ONCERONCERTT- The objective of this promotion is to create awareness

of Echo among the Baby Busters between the ages of 18-34.

- The concert will create excitement among the target market and encourage them to come. This will bring awareness to the free Echo that will be given after the concert.

- Three concerts will be held in June. - There will be one ECHO given away at each concert.- Concerts will be held at Los Angeles, New York and

Chicago.- The concerts will include a mix of R & B, Alternative, and

Swing music groups selected from the Top 40s. - The concert will feature Hole, Third Eye Blind, Korn,

Lauren Hill and Cherry Poppin’ Daddies.

FREE CD'S FOR TEST DRIVEFREE CD'S FOR TEST DRIVE- The objective of this promotion is to encourage Baby

Busters between the ages of 18-34 to visit local dealership to test drive Echo.

- Only the first 60,000 people will be eligible for the free CD.

- The CD will be a sampler of performing artists in the "Win a free Echo" Concert.

- The test drive automatically qualifies the driver to enter the drawing for concert tickets.

- Tickets may also be purchased through the website on a link with TicketMaster.

INTERNET GAMEINTERNET GAME- The objective of this game is to create excitement

among Baby Busters 18-34.- There will be four levels to the game.- Before becoming eligible for a prize, each participant

must complete a level.- Completion of the final level will qualify participants to

enter in a free Echo drawing.- The game will run from September 1999 to May 2000.- The game prizes are as follows:

Level 1: T-shirtsLevel 2: Mouse padsLevel 3: Auto mugsLevel 4: Auto pads & drawing for free Echo

ECHO ADVENTUREECHO ADVENTURE- The objective of this promotion is to encourage Baby

Busters 18-34 to purchase Echo through local dealerships or through the Internet.

- One who buys the Echo through local dealerships or through the Internet will be entered in a drawing to go on a free trip.

- There will be two trips. One to Costa Rica and the other to Australia.

- There will be fifteen winners of 2 tickets for each trip. -The Echo adventures will take place in January and

August.

CC OSTOSTAA RR ICIC AA CC RUISERUISE ::It will be with Windstar Cruises. The trip will be sevennights. This will take place in August.

' 'A''A USTRUSTR ALIAALIA " " It will take place in January. The trip willbe for fourteen days.

1818

PUBLIC PUBLIC RELREL AATIONSTIONS

OBJECTIVE:OBJECTIVE:To create good will among the target market by becominginvolved with community improvement efforts.

TEAM TTEAM TOOY VY VOLOLUNTEERSUNTEERSTeam TOY will consist of members of the target marketwho volunteer their time to participate in public relationevents. Volunteers will receive "TOYkens" for theirparticipation. The Toykens will be redeemable toward EchoTOY togs. Applications for being a Team TOY volunteer willbe available on the internet

TTOO YYS FOR TS FOR TOO TTSSMarine Toys for Tots Foundation is a national charitableorganization for the collection of new toys and donationsfor children during the Christmas holidays. Thiscommunity promotion will bring local dealerships, TeamTOY Volunteers, and the Toys for Tots Foundationtogether to promote donations during the holidayseason. Receptacles will be set up in local dealershipsparticipating in Toys for Tots. Toys for Tots will run fromNovember 15 through December 15.

TTOO YYS FOR TEENSS FOR TEENSToys for Teens will be a program developed with collegestudents in order to become involved in the futureeducation of local junior high and high school students.Brochures will be distributed throughout local schools. Inaddition, Team TOY Street Crews will take sign-ups inschools, colleges, and local dealerships. Toyota willdesignate a specific week on which college students canvolunteer their time to help with the "TOYS for Teens

Day." College students will sponsor a teen for this day oncollege campuses. Furthermore, college students willdemonstrate the benefits of attending college, theimportance of acquiring an education, and the funaspects of colleges among visiting students. Toys forTeens will be held during the week of February 10th.Volunteers will receive TOYkens for participation.Applications will be mailed to university clubs andfraternal organizations as well as high school guidancecounselors in the top twenty automotive markets.

TTOOYYS FOR TREESS FOR TREESThe National Arbor Day Foundation is a non-profitorganization, designed to promote communityinvolvement and to increase environmental awarenesswithin local communities nationwide. Moreover, theNational Arbor Day Federation provides trees tocommunities in need. The Federation also promotesenvironmental awareness among young childrennationwide. "Toys for Trees" will create a partnershipbetween Toyota and The National Arbor Day Federationfor the upcoming Arbor Day 2000.

Arbor Day 2000 will be held on April 28, 2000. The goal of Arbor Day 2000 is to accumulate at leastone million trees to distribute among schools nationwide.Toyota will contribute $36,000 to guarantee that200,000 trees will be available for Arbor Day 2000.Toyota will fund all advertising media promoting theToyota and Arborday 2000 partnership. Toyota will alsohighlight the environmental features of the Echo.

Team Toy volunteers will participate in their local schoolsto help distribute and plant trees on Arbor Day 2000.Team Toy volunteers will receive Echo Toykens to redeemfor Echo merchandise for participation.

These programs will be advertised on the Internet site, aswell as in the radio and magazine advertising during theappropriate periods . There will also be banners located in1,ooo dealerships across the country to promote theactivities and the web site.

MERCHANDISINGMERCHANDISINGBanners will be placed in 1,000 dealerships in the top 20automotive markets to promote the web site and the 1- 800-GO 4-ECHO number.

Throughout the duration of the campaign, variousmerchandise will be made available for sale on theTOY.com web site. Merchandise will include ECHO automugs, auto clipboards and notes pads, pens,key chains, T-shirts, hats and mouse pads.

Merchandise will promote ECHO's young image and createexcitement among the target market.

CCAMPAMPAIGN AIGN EE VVALALUUAATIONTION

- To conduct post campaign surveys and focus groups todetermine the Baby Busters' perceptions and awareness regarding Toyota and the Echo.

- To perform a sales analysis within the first year of the campaign in order to evaluate monthly unit sales.

- To evaluate and determine the frequency of web sites visits.

- To evaluate dealership traffic patterns during promotions by determining the number of CD’s

given away.

1919

APPENDICESAPPENDICES

2020

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CCoorrpp..Detroit $3,087.4 $2,376.4 29.9 $825.6 $635.4 $2,261.8 $1,740.9 $710.3 $573.9 $1,502.0 $1,114.7 $42.7 $51.1

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1,532.4 1,422.6 7.7 229.9 311.5 1,302.6 1,111.1 418.4 326.2 865.4 765.5 18.7 19.4

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Dearborn,MI

1,281.8 1,197.1 7.1 287.2 268.2 994.6 928.9 377.8 357.0 590.8 548.3 21.2 22.3

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ToyotaCity,

Japan 851.9 782.8 8.8 255.6 234.8 596.3 547.9 174.2 151.2 415.9 391.5 2.2 3.0

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Tokyo 578.1 518.0 11.6 138.7 124.3 439.4 393.6 89.3 77.6 344.4 311.4 2.8 3.7

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Tokyo 546.1 557.4 -2.0 93.4 118.0 452.7 439.4 105.4 93.3 346.1 344.5 1.3 1.5

VVoollkksswwaaggeenn Wolfsburg,Germany

204.9 171.3 19.6 47.1 51.4 157.8 119.9 35.4 22.4 122.3 97.4 0.0 0.1

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165.8 171.3 -3.2 34.6 35.8 131.2 135.6 32.4 23.0 97.9 111.7 0.8 0.9

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Tokyo 123.2 93.4 31.9 31.9 24.2 91.3 69.2 14.2 8.5 76.9 59.8 0.1 0.9

NOTES: Dollars are in millions. Unmeasured ad figures are Advertising Age estimates. *Other includes outdoor, Yellow Pages and Internet

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BILLBOBILLBOARD ADARD AD

2323

BILLBOBILLBOARD ADARD AD

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PRINT ADPRINT AD

2525

PRINT ADPRINT AD

Toyota Echo, a new basic car that is economical and functional, yet, fun to drive. With the price starting at $13,000, you can

have a car that runs with advanced 1.5-liter four-cylinder engine with variable valve timing (VVTi), the same technology that is

found in Lexus. The engine delivers 108 bhp and 105 pound-feet of torque. It can also take you as far as 40 miles with just one

gallon of fuel. Inside, the Echo provides a comfortable and roomy interior, even better than Mercedes C-class. Its unique feature

is the center-mounted instrument cluster atop the dash that speeds information retrieval, reduces eye strain and improves safety.

For more information contact your nearest Toyota dealer, visit www.toys.com or call 1-800=GO-4-ECHO.

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GET INVGET INVOLOLVED!VED!PPlease help put a smile on a child’lease help put a smile on a child’s facs fac e thise thisCC hristmas. Bhristmas. B ring an unwrring an unwrappapp ed ted toy toy to yo your our

loloccal Tal Toyoyota dealershipota dealership. T. The the toyoy s will bs will be give givenentto childro children of loen of lo w inw in cc ome families. ome families.

FFor moror more infe information visit:ormation visit:wwwwww.T.Toyoy s.cs.c om om

or cor call: all: 1-800-GO-4-ECHO1-800-GO-4-ECHO

GET OUT AND PLGET OUT AND PL AAY!Y!

PRINT ADPRINT AD

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INTERNET ADINTERNET AD

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GET INVGET INVOLOLVED!VED!CCome help clean up the envirome help clean up the environment ononment on

April 30th as wApril 30th as w e ce c elebrelebratate e National ArbNational Arbor Dor Dayay,,

FFor moror more infe information visit:ormation visit:wwwwww.T.Toyoy s.cs.c om om

or cor call: all: 1-800-GO-4-ECHO1-800-GO-4-ECHO

GET OUT AND PLGET OUT AND PL AAY!Y!

TToyoy s fs for Tor TrreeseesPRINT ADPRINT AD

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INTERNET ADINTERNET AD

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GET INVGET INVOLOLVED!VED!BBecec ome a Tome a Team Team Toy Coy Crrewmembewmember and er and

makmake a dife a dif ffererenen cc e in the future in the future ofe ofyyour loour lo ccal high schoal high scho ol students.ol students.

FFor moror more infe information visit:ormation visit:wwwwww.T.Toyoy s.cs.c om om

or cor call: all: 1-800-GO-4-ECHO1-800-GO-4-ECHO

GET OUT AND PLGET OUT AND PL AAY!Y!

TToyoy s fs for Tor TeenseensFLFLYER TYER TO SCHOOLSO SCHOOLS

RR ADIO SCRIPTADIO SCRIPTS (ENGLISH)S (ENGLISH)ADAD ONEONE(30-seconds)Announcer: Another ECHO moment

Guy 1: Shh....here she comes (music)

Susie: Hi Guys

Guy 1 & 2: Hi Susie

Guy 1: Watch this (music) so....want to catch a movieFriday night?

Susie: No...I have to ...uh....wash my cat.

Guy 1: OK (music) she’s all yours (music)

Guy 2: Susie....I.....toy tour.....wanna go?

Susie: You won tickets to the toy tour concert?

Guy 2: yes i won...

Susie: I was going to go test drive a toy, the ECHO to get a free CD of the concert.

Guy 2: Will you go with....

Susie: Definitely

Announcer: come check out Toyotas new subcompact...the ECHO ...and visit us on the web at www.toys.com....you could win big.......get out and play.

ADAD TWTW OO(30-seconds)Announcer: another ECHO moment

(two honks of a horn)

Girl 1 & 2: Hi Janice (snotty)

Girl 1: Oh i just cant stand her. Wait.... was that Bob with her?

Girl 2: Oh my gosh...it was... he said he wanted nothing to do with her!

Girl 1: It's only because she bought that new toy... the ECHO.

Girl 2: Yah...he's only kissing up to go to Costa Rica

Girl 1: is that the free trip you can win when you buy anew ECHO?

Girl 2: Yes...and you get a free CD when test drive the ECHO.

Girl 1: So.... do you want to go for a test drive?

Girl 2: Definitely

Announcer: Come check out Toyota's new subcompact....the ECHO....at your local Toyota dealer or visit our website www.toys.com ....you could win big....get out and play.

ADAD THREETHREE(30-seconds)

Announcer: Do you know how much carbon dioxide a carproduces everyday?

Here's the fact: 5,000 pounds of carbon dioxide isfloating in the environment...Yuck!

Let's get involved in the fight against pollution. We shouldbe able to go out and play with fresh air in our lungs.

In response toyota's new ECHO is designed to be one ofthe most environmental friendly vehicle. ECHO's parts arerecyclable. It has the low emissions and can go 45 milesunder a gallon.

To find out more about the new ECHO, visit our website atwww.toys.com or call 1-800-GO-4-ECHO.Now Get out and play!!!

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RR ADIO SCRIPTADIO SCRIPTSS (SP(SPANISH)ANISH)ADAD ONEONE30-Segundos

(Se oye el sonido de un carro al pasar y la bocina)

Muchachas 1&2: Hola Claudia! (de una manera hipocrita)

Muchacha 1: Uh! No la soporto!! Oye, ese no era Carlos enel carro?

Muchacha 2: Es verdad, era el…Ay! Que chulo esta!!! Y estan buena onda…pero el dijo que no queria nada con ella,que embustero!

Muchacha 1: Chica, esta con Claudia solo porque ella secompro el Echo…

Muchacha 2: El lo que quiere es qudar bien con ella para ira Costa Rica.

Muchacha 1: Ahhh, verdad… Ese es el viaje que te puedesganar cuando compras el Echo?

Muchacha 2: Si, y te dan un CD gratis cuando vas aprobar el carro….

Muchacha 1: Eso suena bien…. Quieres ir a probarlo?

Muchacha 2: Pues claro! Ya veras… se lo voy a robar aClaudia…

Locutor: Ven y maneja el nuevo sub compacto de Toyota,el ECHO, visitanos en www.toys.com; puedes ganarmuchos premios… sal y diviertete!

ADAD TWTW OO30-Segundos

Muchacho 1: Shhh…. ahi viene….(susurrando)

Ana: Hola muchachos! (sexy)

Muchachos 1 y 2: Hola Ana…

Muchacho 1: Mira esto… (se oyen pasos)… Anita,quieres ir al cine conmigo el viernes?

Ana: No….eh… tengo que… banar a mi gato…

Muchacho 1: OK… te toca a ti (susurrando)…

Muchacho 2: Ana… yo… tu…. Gane… toy tour…ir..

Ana: Que te ganaste boletos para el "toy tour concert"!

Muchacho 2: Si, me lo gane en www.toys.com.

Ana: Pues que casualidad, yo iba a ir a probar el Echo,sabes que te dan un CD del concierto gratis?

Muchacho 2: Quieres ir con….

Ana: Pues claro!!!

Locutor: Ven y maneja el nuevo sub compacto de Toyota,el ECHO, visitanos en www.toys.com; puedes ganarmuchos premios… sal y diviertete!

ADAD THREETHREE30-SegundosEnvironmental Friendly Radio Advertising (spanish

version):

Sabes cuanto bioxido de carbono produce un carro en undia?Estos son los hechos: Ahora mismo en el ambiente estanflotando 5,000 libras de bioxido de carbono danando elambiente.

Unete al a guerra contra la contaminacion!! Asi podemossalir y divertirnos sin humo y porquerias en nuestrospulmones….

Toyota esta haciendo algo para ayudar… El nuevo ECHO,es uno de los pocos vehiculos ayudan a la ecologia.

La mayoria de las partes del carro son reciclables, tiene lamenor cantidad de emisiones, y puede cubrir 45 millascon solo un galon de gasolina….

Si quieres saber mas del ECHO, visita el website enwww.toys.com o llama a 1-800-

Sal y diviertete!!!!

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BIBLIOGRBIBLIOGR APHYAPHYThe Lifestyle Market Analyst 1998Publisher: SRDS, Des Plaines, IL 6001818-33 Populations with Income $30-49,000

1. Denise Gellene "Toyota Adopts a New 'Everyday' Slogan"9/13/97 Los Angeles Times Home Edition Page D-2

2.Skip Wollenberg: The Associated Press "I love what youdo for me' gives way to the automaker's new 'ToyotaEveryday' campaign. 9/13/97 The Orange County Register MORNING Page c04

3. http://www.toyota.com/times/product/docs/everyday.html

4. http://www.toyota.com/times/loca/docs/driveus.html

5. "Toyota Goes Greener With New EnvironmentalAdvertising Campaign" 7/27/98

6. The Tampa Tribune 6/29/97 METRO Page 1

7. http://dealer.vw.com/cgi-binbin/audi_pressrel/result.pl?i1561&m=107&a=107&type=vw

8. http://dealer.vw.com/cgi-bin/audi_pressrel/result.pl?i=2421&m= 107&a=107&type=vw

9. Los Angeles Times, Home Edition 6/24/98 Page D-3

10.The San Diego Union Tribune 7/13/97 Page SUNDAYWHEELS NC-1

11. Los Angeles Times, Home Edition 2/19/98 Page D-1

12. Los Angeles Times, Home Edition 1/8/98 Page D-1http://www2.4adodge.com/frameset_home.html

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