Toyota Highlander Hybrid

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McKenzi Higgins Research Director

Abby Wuestenberg Account Director

Shelby Lewis Creative Director

Jennifer Dineen Media Director

Chloe Derse Public Relations Director

Order of Information

Situation Analysis

Campaign Strategy

Creative Plan

Media Plan

Public Relations Plan

Appendix (in order listed above)

Situation Analysis

Company History Anal-

The Toyota Motor Corporation, founded in 1937, is one of the leading automobile manufacturers in the world, headquartered in Aichi, Japan. The company operates globally to include North America, Europe and Asia.

Toyota, despite its overseas roots, has proven its dominance in the North American automobile market after its 55 years of operation, accounting for 15.9% of the market share, over auto-giants like GM, Ford and Honda. (1) Toyota has created employ-ment opportunities for over 365,000 Americans, in over 10 operating plant locations in the United States.

In 2010, over eight million Toyota vehicles were recalled worldwide due to defective gas pedals, issues with braking software and improperly implemented floor mats. The recall caused a cease in production of vehicles in both U.S. and Canadian Toyo-ta plants. To add to the trouble, the company faced a severe supply shortage due to the Japan earthquake and Thailand flood in March 2011.

Toyota experienced yet another massive recall of 7.4 million cars worldwide in 2012, with 2.5 million vehicles recalled in the United States alone due to faulty window switches that resulted in fires. Despite this unfortunate situation, Toyota remains a top competitor in the automobile industry and took in approximately $3.52 billion in net income for the fiscal year of 2012-a promising increase from 2011.

Toyota offers a diverse product line-up to over 170 countries and regions through more than 500 consolidated subsidiaries and 210 affiliated companies. (2) Vehicles range from subcompact cars to luxury and sports vehicles, to SUV’s, trucks, mini-

Company History Anal-vans and buses. The company’s consolidated vehicle sales for the fiscal year ended 2012 total 7,435,781 units, indicating an increase of 44,000 units over that in 2011.

Toyota’s vehicles can be classified in two categories, namely conventional engine vehicles and hybrid vehicles. After the introduction of the Toyota Prius in 1997, Toy-ota has been a dominant player in the hybrid market. While Toyota currently has 11 hybrid models available, the company announced that it will develop 21 redesigned hybrids by 2015. (4) This year, sales of Toyota hybrids have surpassed the 1 million vehicles sold mark, among them the Toyota Highlander Hybrid.

The Highlander Hybrid uses Hybrid Synergy Drive Technology, combining the use of both an electric motor and a 3.5-liter V6 gasoline engine, for a total of 280 horse-power. (5) The hybrid technology allows for 28mpg city/highway allowing for EPA fuel economy estimates that are the highest in its class. The Highlander Hybrid features enhanced stability control, electronic-brake force distribution, smart stop technology and seatbelt warning sensors among other key features.

Toyota’s Highlander Hybrid was the first hybrid to offer all-wheel drive and seating for seven. Now, in its second generation, the Highlander Hybrid is larger and more spa-cious, making it attractive to consumers who desire improved fuel economy, without sacrificing space.

Industry Trends

GloballyThe outlook for the Car and Automo-bile Manufacturing industry over the next five years is bright. Industry profit margins could reach 2.4% of revenue in 2013 as companies improve opera-tional efficiency at manufacturing plants. By 2018, margins are also expected to grow to 3.4% of revenue, despite rising input costs. (6)

IBIS World anticipates that from 2013 to 2017, revenue for the automobile industry will grow at an annual rate of 3.0 % to $156.1 billion. This can be at-tributed to a 3.5% revenue jump in 2013 due to US-owned manufacturers’ efforts towards increasing international sales, seeing opportunities in emerging mar-kets in Europe and Asia. Exports are estimated to grow an average of 8.4% annually to 2017. (7)

NationallyAccounting for just fewer than 59% of sales, Toyota Motor Corporation, General Motors Company (GM), Ford Motor Company (Ford), and Chrysler Group (Chrysler) were the four leading suppliers of motor vehicles to the US market in 2011. (9)

Production of light motor vehicles in the US is forecast to increase to 11.0 million units in 2016, representing an annual growth of 4.6%, while production of medium and heavy motor vehicles in the US totaled 255,000 units in 2011 and is projected to ad-

Nationally

Analysisadvance 5.3% per year to 330,000 units in 2016. (10) Economic recovery follow-ing the recent recession is a contributing factor in the increased output.

US retail sales for motor vehicles and parts dealers increased 7.9 percent in 2012 compared to 2011 and will contin-ue to grow reflecting consumer demand. (11)

US demand for light motor vehicles grew to 12.8 million units in 2011. Sales of light motor vehicles are expected to rise 3.4% annually to 15.1 million units in 2016. Demand for medium and heavy motor vehicles in the US totaled 350,000 units in 2011, and is pro-jected to rise at a 3.7% annual pace to 420,000 units in 2016. (12)

HEVIn 2009, the federal government initiated a plan to set fuel-efficiency standards to improve each year, with the end goal of creating an industry-standard average fuel economy of 54.5 mpg for all vehicles by 2025. (13) Between 2012 and 2016, car com-panies’ product line-up will have to get an average of 35.5 miles per gallon. (14)

California has recently mandated manufacturers to produce 7,500 zero-emission vehi-cles (ZEV) and 58,000 plug-in hybrids in 2012 to 2014. (15) Several other states have adopted California’s standards, and an additional 120,000 plug-in hybrids must be sold in those states by 2014.

High future oil prices have many automakers seeking possible growth in the hybrid market, threatening to encroach on Toyota’s hybrid market share. Experts predict a 4.3 percent increase in oil prices annually for the next five years.

On average, fuel buyers spent $47.36 a week a fuel, and males ($51.65) spend more than females ($43.08) Households with five or more people spent an aver-age of $63.18 a week on fuel. Expert projected price charts for 2013-2014 show gas prices at the very least will remain consistent with 2012 levels, and will not drop for more than one month at a time. (16)

However, Toyota may benefit from the increase, as SUV and truck owners would be highly affected, posing the opportunity for SUV drivers to consider a more fuel-efficient, cost effective hybrid SUV option-like the Highlander Hybrid. In fact, AAA has observed a boost of hybrid car sales recently, which may be attributed to the subse-quent increase in fuel prices.

Demand for hybrid-electric light trucks is expected to more than double to 70,000 units in 2016, an improvement from the declines of the 2006-2011 period. Light-duty hybrid-electric vehicle (HEV) demand in the US is forecast to nearly triple to 750,000 units in 2016. (17)

The total sale of hybrid vehicles is estimated to increase from 2.3% of new LDV sales in the year 2007 to 20.6%, and 39.6% by 2015 and 2030. (18) It has been pro-jected that the sales of hybrid vehicles could reach 7.9 million in 2030. (19)

The federal government’s push for tougher fuel economy standards, coupled with the rising cost of oil and gasoline, has paved the way for both the increased sale and demand of hybrid vehicles in the United States.

Competitive Analysis

The Car and Automobile Industry has a moderate market share concentration, with four companies, Toyota, GM, Ford and Chrysler, accounting for an estimated 54.3 % of the industry output in 2012. The next four largest companies in combination with the top four account for about 80.4% of industry output. (20) IBIS world predicts mar-ket share dominance over the next five years to 2018 will be attributed to companies that can balance affordability while maintaining technological advancements.

Toyota claimed the greatest percentage of the market share in 2012, accounting for 15.9 total percent of the market after a year of record sales, totaling 9.75 million vehicles. Close behind was German auto-giant and Toyota’s leading-import brand competitor, Volkswagen AG, who sold 9.07 million vehicles in the US, in a tight race for second place in total market share with GM, who sold 9.29 million vehicles in 2012. (21) Both Toyota and Volkswagen will continue to dip into GM’s market share in the future.

General Motors (GM), the largest US-based automobile manufacturer, has seen its market share fall from 20.2% in 2007 to 14.9 % in 2012 due to the recession and its recent government bailout. (22) While GM is expected to gain some its market share

over the next five years, it is not forecast to benefit the same way other automakers will.

Since the recession, Ford has gained momentum in the automobile industry in the manufacturing segment of its business, due to the success of its Fusion, Focus and Mustang. Ford’s market share of the industry has fluctuated over the past five years, dropping to a low of 10.4 percent in 2008 to 12.0% in 2012. (23) This poses a threat to Toyota, as Ford’s market share is growing.

Honda Motor Company is Japan’s second largest automaker behind Toyota Mo-tor Company. From 2007 to 2013, Honda’s sales from its US cars and automobile-manufacturing segment have fallen dramatically. As a result, revenue is expected to fall at an average annual rate of 3.1 % to 7.7 billion. (24) This is beneficial in Toyota’s case, as Honda is a top hybrid competitor.

Hyundai-Kia has recently taken advantage of the ability to take over the market in a short amount of time. The South Korea based manufacturer increased its US market share from 5.9 % in 2007 to 11.4 % in 2012. (25) This company will be one to watch in the future for Toyota in regard to market competition.

Who areToyota’s

leading competitors?

HEV Brand Competition Hyundai (South Korea), General Motors, Nissan (Japan), Porsche (Germany), Mazda (Japan), Volkswagen (Germany) and BMW (Germany) are seeking to capitalize on shifted consumer prefer-ences towards environmental conscious-ness and improved fuel economy. Still, Toyota, Honda and Ford have dominated the HEV industry; accounting for 86% of all HEV’s sold in the United States in 2011. (26)

Toyota was the leading supplier of light-duty HEV’s to the market in 2011, ac-counting for 65 percent of all vehicles sold. Toyota produces hybrid-electric passenger vehicles including the Toyota Prius, Toyota Camry, Lexus GS, Lexus LS, Lexus HS and Lexus CT; and hybrid SUV’s to include the Toyota Highlander and Lexus RX. (27) The Toyota Prius has been considered to be the most success-ful selling hybrid in the United States, surpassing the over 1,000,000 sold mark

in 2012, and serves as a constant com-petitor for other brands.

Honda was the second largest sup-plier of light duty HEV’s to the US in 2011, with an 11% share of the market. Honda’s HEV models include the Honda Insight, Honda CRZ and Honda CIVIC. Ford was the third largest supplier of light duty-HEV’s to the US market in 2011, ac-counting for just fewer than 10% of sales. Light-duty HEV’s include the Ford Fusion and Lincoln MKZ passenger cars and the Ford Escape SUV. (28) The Ford escape has been named the most efficient SUV available, boasting fuel economy greater than that of Toyota Highlander.

Brand Analysis Toyota continues to be viewed as an automaker that manufactures affordable, safe and reliable cars. According to a survey completed by Consumer Reports in 2012, Toyota ranked highest among consumers in brand perception, scoring 133, higher than Ford’s score of 118, Honda’s score of 114 and Chevy’s score of 94. (29)

Despite Toyota’s historic recall in November of 2009 and two major recalls in 2012, Toyota’s customers continue to remain loyal. According to a Gallup Poll of current Toyota owners, 11% said they no longer would consider buying or leasing a Toyota because of the recent recalls, while 79 percent still would. The same survey indi-

cated that 74% of current Toyota owners have not lost confidence I Toyota vehicles and 82% believe they are safe to travel in. (30)

Prior to the recall in November 2009, Starch found that over 83 percent of U.S. adults in its sample felt positively about the Toyota brand, while fewer than 17 % felt negatively. This percentage fell after the recall crisis, to 70 percent reporting they feel positively about the brown, and 30 percent felt negatively. (31)

According to a Gallup Poll, of Americans surveyed, sixty percent of them believe Toyota’s vehicles are safe, and 61 percent said they have not lost confidence in the automaker despite the safety issues and recalls. (32)

Product Analysis The 2013 Highlander Hybrid ranks 7 out of 22 in Affordable midsize SUV’s, accord-ing to US new ratings, based off published reviews, test dives and analysis of reli-ability and safety data. (33) Kelly Blue Book said the Toyota Highlander Hybrid is the hybrid model that attains best-in class fuel economy without sacrificing power or inte-rior space. Hybridcars.com placed the vehicle in the category of “families who love hybrids” market (34), indicating the Highlander hybrid is a spacious vehicle suitable for large families and will meet their hybrid expectations.

The Highlander Hybrid is a crossover SUV, which means it has all the space and power of a large SUV, but the build and feel of a fuel-efficient, smooth riding sedan. In fact, the Highlander Hybrid is based on platform of the top rated Toyota Camry midsize sedan. The Highlander hybrid scored five stars for driver protection, four stars for front seat passenger protection and five stars in side-impact protec-tion.

To serve as a constant reminder of its environ-mentally friendly demeanor and fuel-saving technology, the Highlander Hybrid has a consumption screen that displays fuel economy in real time and five minute incre-ments. The Energy monitor screen shows when the gas engine and electric motors are in use. (35)

The Highlander Hybrid is the first hybrid SUV to offer seating for seven and third row

seating. To provide even more space, the Highlander hybrid has a removable cen-ter seat than can be replaced by a center console. If even more space is needed, the area between the second-row seats can be convieniently left open to provide a walkthrough to the third row of seating.

The second and third row seats effortlessly fold flat to open up 95.4 cubic feet for drivers to store additional cargo, luggage or even gro-ceries. There is no need for Highlander Hybrid drivers to purchase tethers and tie-downs, as they are provided in the area to make unfolding and folding seats as convenient as possible. Since the Highland Hybrid is a smaller SUV, loading cargo is simpler than that of a larger type of SUV. (35)

Some have been more skeptical of the High-lander Hybrid’s features. One source calculated that despite the Highlander hy-brid’s improved fuel economy, it would take six years before compensation for the higher hybrid price would pay off, even if gas were 3 dollars per gallon. Additional-ly, the source stated she was only getting 24 mpg rather than 28 mpg as claimed. (36) Another review aligned itself with the remark as well, falling short of the prom-ised 28 mpg and only getting 25 mpg.

The Highlander Hybrid has plenty of power in its smooth hybrid synergy drive sys-tem, plenty of room for large families and is the most fuel efficient seven-seat SUV in its class. However, the steep cost difference between the Highlander Hybrid and regular hybrid poses a challenge in getting consumers to recognize payoff costs. Complaints of lower fuel economy than promised threaten Toyota’s chances of pushing consumers to go hybrid, especially in the SUV market.

Consumer Analysis

Simmons choice data reveals data regarding the Toyota Highlander Hybrid’s pri-mary demographic. They are likely to be white, college graduates with a full-time job. The median income for the average Highlander hybrid owner would be around 100,000 dollars. (37) The primary age demographic for hybrid and Highlander drivers is between 44-60 years old. According to Simmons data, the average age of a hybrid driver is 54 years old, while an average car driver is 50. (38) Men tend to be drivers of the Highlander more often than women, and majority of drivers are married with children, as well as homeowners.

However, according to WPI, women are likely to encourage the purchase of an environmentally friendly vehicle and are more eager to pay for one. (39) Additionally, the Western United States has more hybrid car drivers than the Midwest. Due to strict emission standards, it is logical that cities with the most hybrid cars tend to lie on the West Coast. Los Angeles, San Francisco, Sacramento and San Diego are among the cities that have the most hybrid drivers. Arizona and Oregon are two states with an increasing number of hybrid drivers. (40)

According to Simmons data, those that responded yes when asked if it was important to them that

the denotations of preserving the environment, opposition to war, management of personal finances, reduction of support to oil producers, and the embracement of new technology were justified. (42) The owners of hybrids feel as though it is “the right thing to do and characterize their vehicles as something they can feel good about.”

Hybrid drivers are more than twice as likely as average consumers to go skiing, hiking, or practice yoga. They are also 66 percent more likely to ride a bicycle. Ac-cording to Simmons data, they prefer and consume more organic foods. They are technologically savvy, as 78 percent reported using e-mail regularly, while nearly 1/3 either used text messaging or took photos on a phone, used satellite TV or a video game system. (43) They are likely to recycle, view eco-friendly products of higher quality and are likely to be worried about pollution and energy consumption of cars, according to Simmons data.

Media Usage Analysis In the last five years, Toyota has con-tinued to invest millions of dollars in its advertising campaigns through popu-lar media outlets to reach its intended audience. Toyota’s aggressive advertis-ing was sparked by running more than 840,000 advertisements on radio and television during the final three months of 2009 in response to the historic re-calls regarding their products. (44) Toyota spent roughly 1 billion dollars on marketing during this time period, and has since continued to surpass the 1 billion dollar mark on advertising, spending more than 1.87 billion dollars in 2011 and 1.7 billion dollars in 2012. (45)

Due to the competition for grabbing the greatest market share, US automobile advertising in the media rose 19 percent to 14.3 billion dollars last year, accord-ing to Advertising age. Spending by the top seven automakers jumped 28 per-cent to 10.5 billion dollars alone. (46) Toyota is justified in their large advertis-ing budget, vying for consumer’s atten-tion in a world full of ads.

Not surprisingly, over 767 million dol-lars of Toyota’s advertising budget was directed to television. Luckily, Television continued to lead the ad market in the second quarter of 2012, with

overall growth of 4.4 percent. (47) Cable TV expendi-tures rose 4.2 percent and growth was driven by sports program-ming and networks with larger audience ratings. According to hybridcars.com, Toyota Highlander Hybrid users were twice as likely to use broadcast or cable TV. It would be beneficial in Toyota’s case to advertise on larger cable net-works such as FOX, which has been the most-watched news channel for 39 consecutive quarters in total viewers for total day and primetime, followed by MSNBC and CNN. (48) According to Simmons Data, those who drive Toyota Highlanders and hybrid cars both watch ABC Family as well, with an index of 237 and 141.

Toyota’s target audience for the High-lander Hybrid, according to hybridcars.com, is likely to be a homeowner and care about the environment. In 2012, Toyota purchased three hours of airtime on the Home and Garden Shopping net-work to promote its hybrid vehicle line up. (49) According to Ed Laukes, head of marketing communications for Toyo-ta, 87 percent of Home Shopping net-works 4.7 million viewers are women, so Toyota was confident it reached its intended audience. Additionally, hybrid

drivers are twice as likely as average consumers to go skiing, hiking, or prac-tice yoga, and they are 66 percent more likely to ride a bicycle. (50) According to Simmons data, those who drive a Toyo-ta Highlander and a hybrid vehicle both consume shows that align itself with this description, like the Discovery Health Channel, The Golf Channel, History In-ternational and National Geographic.

PEW Research Center found that auto-motive page advertising in magazines jumped 16.9 percent in 2010, despite two-thirds of top 25 magazines experi-encing circulation declines. (51) Ben-eficial to Toyota’s Highlander Hybrid campaign, top 25 magazines to actually gain more than 2% readership was Par-enting and Better Homes and Garden, which aligns itself with the hybrid target audience of having children, a family and being a home-owner. National Geo-graphic circulation fell only .1 percent, also aligning itself with Toyota’s hybrid target market, as drivers are more likely to be active in the environment.

Product placements in magazines have been increasing in magazines catego-ries such as Women’s Health and Fit-ness at 3.1 %, Wealth at 1.4%, Busi-ness and Personal Finance at 7.2% and Parenting/Kids at 11.6%, highlighting the specific niche groups that outline itself with the Highlander audience. (52) According to Simmons data, both Toyo-ta Highlander drivers and hybrid vehicle owners read bicycling magazine, con-sumer reports, entertainment weekly and Golf Digest.

News magazine readers tend to be

older and wealthier than the overall US population, which aligns itself with the hybrid campaign and the extremely large index of 1028 in Golf Digest, as the target market tends to be older and wealthier than the overall population as well. The average annual income of a news magazine reader is $92, 117 and the age of 48. (53) Toyota should con-tinue their partnership with TIME maga-zine to advertise their products, and would do well to advertise in magazines like Business Week, People, Parenting, Better Home and Garden and Wom-en’s/Men’s Health.

The General Media consumption land-scape is changing, and our campaign seeks to capitalize on current and future trends. Online adults aged 25-54 are 23 percent more likely than the average Internet user to follow a brand via social networking. They are also 29 percent more likely than their older or younger counterparts to purchase a product on-line that was featured on TV. While im-possible to purchase a car online, this is promising in that po-tential car buyers are able to see features of the Highlander hybrid on toyota.com and follow new campaigns and the brand on so-cial media. The same study indicates fe-males are more likely to look up information related to a TV ad while viewing TV and using a tablet simultaneously. (54)

Hybrid owners are above-average tech savvy. Within the last month, 78 per-

ties outpace the national average and include accessing news, Web auctions such as those on eBay, blogs, financial information, videos, movie listings, sports, and travel reservation sites. (55) The hybrid’s target age market, 40-55, is a very engaged segment and they will use social technologies for both work and purely social connection with friends, according to mediabadger.com. In fact, according to PEW research data, 65% of adults engage in social media. (56)

Toyota would do well to continue to grow its social media presence, which grew at 10 percent in just the last year with over 80,000 followers. Online advertisements located on cable TV network websites and banner ads on popular blogs could prove beneficial. Additionally, large billboards, mobile billboards on trucks or vans, stadiums and arenas most noticed advertising outside of the home to Toyota High-lander drivers, according to Simmons Data.

Creative Analysis

Toyota has heavily invested in television advertising based off of our research. One television advertisement in 2008 for the Toyota Highlander featured a fam-ily with a young boy who had to desperately go to the bathroom. The narrator points out that if the family owned anything but a Highlander, the boy would have disturbed the whole family by his need to use the bathroom. However, because “everything counts” in regard to the Highlander’s features, the boy could fly out of the SUV easily due to the removable center-stowed seat and a crisis was averted. (57) The campaign seemed to have no genuine positive or negative feedback and went largely unnoticed. In 2011 Toyota announced its advertising campaign with

its agency Saatchi and Saatchi (LA) for the Highlander would be “Just because you’re a parent, doesn’t mean you have to be lame.” According to the company, the campaign positioned the Highlander as cool, stylish and perfect for parents so their kids wouldn’t be embarrassed of them. (58) The campaign focused more on negative humor, and aimed to utilize emotional appeals rather than highlighting specific features of the car that made it “cooler” than its competitors. It did high-light the back seat televisions, but very briefly.

Nathan James was the young child in the commercials stressing the importance of being cool, and hosted “The Nathan James Show” web series on the Toyota brand YouTube channel. On the channel, Nathan offers advice to “dorky” or “lame” fam-ily members and friends in order to make them cool and hip, which is, of course, owning the Highlander.

Some felt insulted at the entire Na-than James campaign. One writer commented, “I saw this Toyota com-mercial…in which a punk kid who needs a haircut describes his yearn-ing to drive in a new Highlander be-cause he doesn’t want to be known as a member of “The Geek Family” that drives an old minivan. First of all, if you’re a parent, your kids shouldn’t have any influence over your buying decisions...in an effort to not seem “lame” to them.” (59)

Other consumers quickly started to write negative comments about the ads on forums, blogs, social networks and through comments on Toyota’s You-Tube channel. According to an article on autotrader.com, “They’re upset that Na-than is such a “brat,” calling him materialistic and rude to his parents. They criti-cize Toyota for trying to “blackmail parents” into buying a new vehicle they might not be able to afford.”(60) Additionally, a Facebook page called “Toyota Highlander Commercial Sucks,” was created and has a description discussing how children should not manipulate their parents.

One user on a website also commented in 2012, “Toyota has had absolutely retched ad series over the last two year.” (61) Toyota’s 2012 Highlander Hybrid TV Spot, “Hippies” features a family remembering a trip they took to a mountain in their Toyota Highlander. The tagline is, “Highlander, it’ll keep all your stores and all its versions” and features hippies, goats and young children all in the SUV as dif-

ferent “versions” of each family members recount of the trip. (62) The commercial seems confusing and fails to highlight the Highlander’s features, as well as really anything that makes it distinct from its competitors.

In 2013, Toyota’s “Wish Granted” television advertisement featuring Big Bang Theory’s Kaley Cucoco was among the leader in Super Bowl ads viewed on You-Tube, with almost 6 million views. (63) The advertisement is for the Toyota Rav 4 and features Cucoco humorously granting a number of implausible wishes to a family. While this is not a Highlander ad, its success is something to note and pos-sibly use for a future campaign.

In 2013, the Toyota Brand also changed its U.S. advertising tagline to “Let’s Go Places” replacing “Moving Forward”, which was its slogan since 2004, accord-ing to Automotive News. The company believes it reflects a positive change in Toyota and reflects brand optimism, as well as encourages people to be a part of the Toyota movement. (64)

Toyota fails to differentiate between the Highlander and Highlander hybrid in its television ads; however, one print ad does talk about Hybrid Synergy Drive and its minimal impact on the environ-ment. (65) The ad features a snowy mountain scene with no tracks or marks left by the SUV, implying it impacts it nei-ther visually nor environmentally.

Overall, Toyota would do well to differentiate between the Highlander and High-lander hybrid, as research indicates the two have potentially different target audi-ences with different goals, interests and values. The company should focus on the hybrid’s unique attributes in comparison to its competitors, as well as its very own standard Highlander.

The backlash from consumers about the Nathan James campaign indicates it was ineffective and did not humor people the way the company thought it would. It left out many of the SUV’s features and neglected to portray a positive image. The “Hippies” theme commercial is confusing and leaves out many of the SUV’s key features as well.

Toyota’s new tagline change, as well as the success of its 2013 Super bowl ad

indicates that the company is headed on the right track. By utilizing positive, rather than negative “poking fun” humor, as well as celebrity appearances, Toyota seems to have captured consumer attention in a more positive way. For the Highlander hybrid’s success, focusing on the family, environment and using some of the posi-tive humor may be the winning trio.

PR Analysis Toyota is a company that has been widely known for its ability to relate to its potential and current customer base. Toyota closely monitors economic and demographic developments regarding its respective target audiences by send-ing its researchers to interview vehicle buyers. (66) Not only does this allow for Toyota to anticipate changing consumer preferences, it shows that Toyota cares about its customer’s opinion and busi-ness-an excellent public relations effort. Toyota has striven to be an extremely transparent company ever since its his-toric recall crisis.

Since 2007, Toyota has experienced a number of vehicle recalls that escalated into the one of the largest and most forefront automobile recalls in recent

history. The 2009/2010 recall crisis af-fected about 8 million of the brand’s cars. (67) The public was more than aware of the crisis, as both the media and the U.S. Highway Safety Adminis-tration announced it to America.

Toyota’s initial response during the re-call was responding that no defect ex-isted with their vehicles. The company issued a press release denying media reports there were problems with their vehicles that resulted in the subsequent deaths of its drivers. 33% of survey participants when asked how Toyota was dealing with the recall said some-what disappointing and 24% said very poorly. (68) Toyota needed to make a change.

In Response, Toyota had and continues to be been aggressive with its social media campaign. The company created a social-media response room staffed with six to eight monitors to answer con-sumers concerns on its Facebook page as well as created a Twitter chat. (69) The chat was with Jim Lentz, Toyota Motor Sales president and was called Digg Dialogue. A Tweet Meme called Toyota Conversations was also created

to connect with customer and soothe their concerns. As a result, the Digg Dialog generated more than 1 million views in the first five days alone, and Toyota’s so-cial media base grew over 10 percent. (70) Today, Toyota boats over 1.3 million Facebook followers. On Twitter, Toyota tweets updates about the brand but also answers consumers questions, allowing for company transparency.

Toyota has made other beneficial public relations efforts in the past. The company rehired many of the 3,000 workers that were laid off by GM at its Freemont, Cali-fornia plant. (71) Toyota makes it known that while they are headquartered over-sees, they provide jobs in America and encourage stimulation of the American economy. Toyota operates over 10 plants in the United States and directly employs 35,000 Americans and 400,000 more through dealers and suppliers. This is crucial to its brand image. The Toyota Cam-ry was the first foreign car to compete in NASCAR racing since the 1950’s, again an attempt to make the brand more “American.” (72)

Toyota faces challenges in areas like the Midwest and Texas where typical vehicle purchasers to not purchase foreign cars. However, their aggressive marketing of the Toyota Tundra has been an excellent PR effort as a response. Toyota makes it known they’d like to be viewed by the public as a company that is focused on safety, globally aware and concerned with environment and education in the United States.

Each year in the spring and fall, in conjunction with Japan’s national traffic safety campaigns, Toyota carries out its campaign with the cooperation of its vehicle dealers, logists to educate about safety. (73) Toyota has also helped the National Center of Literacy Foundation to develop a program that promotes literacy by pro-viding educational opportunities for both children and their parents. (74) Addition-ally, Toyota and the National Audubon Society launched a nation-wide program, “Together Green,” to fund conservation projects, train environmental leaders and offer volunteer opportunities.

Most recently, Toyota Financial Surveys is hosting the U.S. segment of the world-wide Toyota Dream Car Art Contest, designed to inspire creativity in youth and encourage an interest in cars. Those ages 4-15 are invited to submit a drawing of their “Dream Car.” (75)

Overall, if Toyota remains dedicated to public service, continues to grow its social

media presence and remain transparent and honest with its customers and the rest of the nation, it will continue to be the number one automobile brand in the United States.

Stakeholder Analysis

Environmentalists

Shareholders

Toyota continues to be a company that is concerned with the environment and has implemented plans to work with environmentalists. Toyota formulated its Fifth Environmental Action Plan specifying the activities that must be implemented between 2011 and 2015 to fulfill the corporation vision regarding the environment that it developed. The company’s goals include establishing a low-carbon society, establishing a recycling-based society and environmental protection. (78) Addi-tionally, their goal is to reduce CO2 emissions in logistics through cooperation with trucking companies.

Toyota seeks to enhance corporate value through long-term, sustainable growth of the company. Despite the recall and loss of investor and shareholder confi-dence in the company and its products, Toyota was able to achieve increases in both sales and profit during the second quarter of fiscal year 2013. Toyota Motor’s stock grew more than 2% when the automaker reported a net profit of 3.2 billion dollars, which was more than three times its net profit a year ago. (79) Toyota recognizes the global economy is expected to be in a difficult situation in the future, but encourages the support of its shareholders and investors regard-less. The company will seek to please its shareholders by utilizing technological innovation in environment, expansion of value chain and business development in world markets as part of its vision 2020. (80)

Dealers

Many dealers felt they were left out of many PR efforts of Toyota regarding the recalls, and it hurt their business as a result, as customers blamed specific dealers carrying defective automobiles for Toyota’s faults. In the future, Toyota should work more closely with dealers to ensure its business and automobiles are sold despite consumer’s misconceptions.

S.W.O.T Strengths: Toyota Brand Recognition Globally and Nationally Most-Fuel Efficient Seven Seat SUVToyota Highlander Hybrid Spacious Seating Room Offers the power of a traditional SUV, yet is environmentally friendly

Weaknesses:Highlander Hybrid is not distinguished from regular HighlanderNathan James Campaign has turned off many to the brand Toyota recall issues concern consumers and affect the brand, despite safety ratings off the chartsHigh price may turn off potential customers

Opportunities:Stricter environmental/fuel emissions standards requiring the purchase of more “green” eco-friendly vehiclesHEV industry outlook promisingRising gasoline and oil prices may drive the shift towards more fuel-efficient vehiclesSocial media use among target audience is more prevalent, allowing for new market-ing strategies

Threats:Other automakers catering to environmental/fuel emissions standards and entering the hybrid marketLower prices of non-hybrid vehicles that are offering reasonable gas mileage to meet fuel standardsCompetitor hybrid SUV’s seeking to capitalize on Toyota’s hybrid market share

Key Issues AnalysisThe Toyota Highlander Hybrid is currently among the few hybrid SUV’s on the market, offering key features to its target audience that would drive sales and es-tablish brand loyalty. Toyota is recovering from its recent recall crisis and despite some consumer wariness; the company is dominating in market share over its competitors and will only continue to flourish with its commitment to sustainabil-ity and technological advancement. While Toyota leads hybrid car sales with the Prius, it lacks the brand presence in relation to the Highlander Hybrid, failing to differentiate itself from the standard Highlander, as well as connect with consum-ers in an advertising sense.

However, from an analysis of the both the Automobile Industry and HEV industry outlook, in combination with shifting consumer preferences towards environmen-tal consciousness, there is no reason why the Toyota Highlander Hybrid can-not dominate the hybrid market in the future. The 2014 Highlander Hybrid has it all-spaciousness, power, environmental friendliness and gas saving technology. IMAGEn will develop a strategy that highlights the Highlander Hybrid’s unique features, establishes a product presence and resonates with consumers, unlike past Highlander campaigns. From calculated analyses we know what to sell, where to sell and who to sell to. IMAGEn the possibilities.

Campaign Strategy

Campaign Strategy

Target Consumer Anal-Who is our Target Group?

According to Simons Data, the target consumers of the Toyota Hybrid are indi-viduals who have a median income of 100,000, are between 35-66 years old, are married with children, are homeowners and most prominently those in the Western United States. These individuals responded that it is important to them that others see them as environmentally friendly. This demographic is tech savvy, likely to ride a bike, buy organic food, ski, hike, and practice yoga.

According to Simons Data, the decision to purchase a vehicle is made by both partners of a relationship, but the woman is more influential on the final decision. Because of this, we chose to specifically tar-get moms. This primary target will be referred to as the Green Soccer Mom. She is between 35-45 years old with an average household income of $100,000. She is a working mother who is active in her own life and in her families. She runs kids to and from school, sport prac-tice, picks up the groceries and goes to yoga all while managing a full time job. Purchasing the Toyota High-lander Hybrid has as much to do with functionality as it does with image for her. This purchase shows her peers she is environmentally conscious, which according to Simons Data, is important to this demographic. Further-more, the vehicle is a “sexy” hybrid alternative to the boring mommy van. She is attracted to the exceptional blend of contemporary styling and utility that provides a premium atmosphere with advanced function-ality (84). The third row seating is particularly attractive for moms with more than two children. This row also doubles as additional storage for moms with any size of family. The unique in-dash shelf and large roll top center council of the Toyota Highlander Hybrid allow her to organize her own life while balanc-ing work, family, health and image.

Primary Target

Meet “The Green Soccer Mom”

The secondary target will be referred to as the Active Empty Nester. This indi-vidual is in his between 45-66 years old, married with grown children who no longer live at home. He is active, adventurous and a traveler. He is attracted to the feeling of excitement in daily driving that the Toyota Highlander Hybrid supplies without sacrificing comfort or utility (84). He is eco-friendly but wants a “sexy” vehicle. He cares about Mother Nature but that doesn’t mean he walks around eating granola, wearing socks with his sandals. He wants to appear modern and hip while still experi-ence fun and excitement from his vehicle.

Secondary Target

Meet “The Active Empty Nester”

Tertiary Target

Meet “The Traveling Salesman”The tertiary target market is a business-to-business market. This consists of green companies with traveling salespersons who supply work cars to their sales representatives and other employees for the purpose of travel, meet-ing and entertaining clients, and visiting trade shows. This market is attracted to the sleek yet strong exterior and improved comfort of the interior of the Toyota Highlander Hybrid (84). This market is concerned with appearance and impression. They will be attracted to the Toyota Highlander Hybrid based off of both image and utility. This market will be wowed by the sophisticated look and feel both inside and outside the vehicle (84). Further, the high fuel economy of a hybrid will appeal to businesses that not only supply company cars but pay mileage as well. This demographic will be targeted through pub-lic relations efforts. The largest event will be Op-portunity Green, which is an annual conference for green business to network with one another. At this event Toyota will highlight the image, utility, and fuel economy of the Toyota Highlander Hybrid. Toyota will use education and bulk discount deals to attract companies and encourage them to outfit their sales

Positioning & Branding Business Objective

The Toyota Highlander Hybrid peaked in hybrid market share in 2006 with 12.46%. Since then market share has steadily declined all the way to 1.69% of market share and $45,490,000 in total sales in 2011 (82). The business objective of this cam-paign is to increase market share to 4% with total sales grossing $120,000,000. A primary focus of this campaign will be to bring awareness to the Toyota Highlander Hybrid. When surveyed, only 21.7% of respondents knew the Highlander came in a hybrid model. This campaign will education consumers and raise awareness about the vehicle through unique, targeted creative messaging and public relation efforts for each of the three demographics

Competitive Advantage

Toyota’s Highlander Hybrid was the first hybrid to offer all-wheel drive and seat-ing for seven. It is the most fuel efficient seven-seat SUV in its class. In its second generation it is larger and more spacious. It is attractive to consumers who desire improved fuel economy, without sacrificing space. This vehicle is attractive to peo-ple who want the look, feel and aesthetic appeal of driving an SUV while maintain-ing the fuel economy of a hybrid. Further, exterior and interior design of the Toyota Highlander Hybrid break the stereotype for a hybrid vehicle. Third row seating, unique in dash self, and a large roll top center council are features unique to the Toyota Highlander Hybrid that consumers will find attractive. According to survey data, 42.9% of respondents would not to purchase a hybrid vehicle due to size or exterior design. But 82.6% of respondents reported they would be willing to pay a

Competitive Advantage

The campaign will highlight the Synergy Drive Technology and spacious interior to play on the tech savvy and active characteristics of the target demographic. It will show you do not have to sacrifice style, comfort and size in order to drive an environmentally friendly, high fuel economy, hybrid vehicle. The campaign will also highlight the third row seating of the Toyota Highlander Hybrid. It will show that this is perfect for large families or can double as additional storage space. The Toyota Highlander Hybrid is the perfect mix between a stylish SUV and an environmen-tally friendly vehicle. It does not sacrifice a strong image for efficiency, but instead, seamlessly combines both.

How the Toyota Highlander is Differentiated from the CompetitionThe Highlander Hybrid uses Hybrid Synergy Drive Technology, combining the use of both an electric motor and a 3.5-liter V6 gasoline engine, for a total of 280 horsepower. (85) The hybrid technology allows for 28mpg city/highway allowing for EPA fuel economy estimates that are among the best in its class. Known for its safety and reliability, the Highlander Hybrid features enhanced stability control, electronic-brake force distribution, smart stop technology and seatbelt warning sensors among other key features.

How the Toyota Highlander will be Positioned within the MarketThe two leading SUV hybrids and biggest competitors for the Toyota Highlander Hybrid are the Ford Escape and the Lexus RX400 (82). The Highlander lacks top of mindedness and is often overlooked or unknown in the hybrid market.

This campaign will result in Toyota Highlander Hybrid being seen as a top SUV hybrid in the hybrid market for its design, safety features, technology, and spa-cious interior while also maintaining the high fuel economy that hybrids are known for.

How Toyota Highlander will be BrandedThere will be three separate branding strategies to target each of the three target demographics:

Primary Target-Green Soccer MomThis strategy will focus on the technology, safety and ability to hold a large fam-ily, groceries, luggage, sporting equipment, ect. This strategy will brand the ve-hicle as a safe, practical, environmentally conscious choice for a family. The vehicle will be shown as spacious, safe and modern. Further, the image the Toyota Highlander Hybrid gives it’s driver will show the Green Soccer Mom as a “cool,” powerful mom. It will focus on the contrast between this vehicle and the boring mommy van alternative many of her peers may drive. Advertisements will show the Green Soccer Mom using the third row seating on days she has a lot of passengers, such as carpooling children to and from after school activities, and transforming this space into additional storage, perhaps when she’s grocery shopping or running errands. She chose the Toyota Highlander Hybrid to appear environmentally conscious, modern, and hip while still meeting the transportation needs of her family.

Secondary Target-Active Empty NestersThis strategy will focus on the ability to carry sporting equipment and a large group of people to remote or exciting destinations. The vehicle will be shown as spacious, strong and fun. The Active Empty Nester is environmentally conscious but unwilling to get up excitement in his vehicle. The Toyota Highlander Hybrid will be shown as an ideal mix between a smart and fun vehicle.

Tertiary Target-Business-to-BusinessThis strategy will focus on carrying trade show equipment and being able to take a large group of investors or clients to dinner. The vehicle will be shown as smart, strong and practical. Further, the campaign will show the exterior and interior de-sign of the Toyota Highlander Hybrid impressing customers, clients and business associates of those who drive the vehicle to tradeshows and client offices.

Brand PersonalityThe current brand personality of the Toyota Highlander Hybrid is undifferentiated in the hybrid market. This vehicle lacks top of mindedness and often is unknown to consumers. Toyota has attempted to brand the vehicle as an outdoorsy, “cool” hybrid. However, the vehicle still lacks brand awareness and recognition and in the hybrid market.

The desired brand personality of the Toyota Highlander Hybrid is a sexy alterna-tive to the boring mommy van. Image will be just as promoted as the fuel econo-my of the vehicle. The campaign will highlight the newly redesigned exterior and interior of the Toyota Highlander Hybrid. The versatility of the interior, the exten-sive storage space, and the technology inside of the vehicle will all play important roles in brand personality

Emotions and Values Linked to the BrandThe Toyota Highlander Hybrid will be known for being versatile, sexy, adventur-ous, safe, environmentally friendly, and modern family vehicle. When a customer thinks of the Toyota Highlander Hybrid s/he will picture the perfect combination of style, utility, and fuel economy.

Scope of the CampaignTimingThe campaign will run August 2013 to August 2014. IMAGEn will utilize pulse advertising to target strategic times of the year that will attract out target markets. According to Simons Data, the target market is likely to watch the golf chan-nel and participate in outdoor activities. Because of this, the campaign will be launched during the 2013 PGA tour. Our first pulse will coincide with network season premiers beginning in October. The second pulse will be in February with a major advertisement placed in the Super Bowl. The third and final pulse will be in May to coincide with a public relations event and also target summer traveling. The majority of advertising will run early morning and mid evening to target work-ing individuals before they leave their house and when they return after work.

LocationThe media and PR efforts will be primarily aimed at the Western United States. Due to the emission standards and trend towards environmentally conscious life-styles, this area of the United States has the most potential consumers. Accord-ing to Simons Data, the Midwestern United States has the second most potential Toyota Highlander Hybrid consumers. Because of this, the Midwestern United States is the secondary target region.

AllocationThe majority of the advertising budget will be used on television advertisements. Ads will be placed in morning network news shows on MSNBC and CNN, on ABC Family, Home and Garden, Discovery Channel, National Geographic, Golf Chan-nel, and History International to name a few. The next largest portion of the bud-get will be spent on magazine advertising. Based off of Simons Data ads should run in bicycling magazines, consumer reports, Entertainment Weekly, Golf Digest, TIME Magazine, Business Week, People, Parenting, Better Homes and Gardens and Women’s/Men’s Health. This campaign will also focus heavily on social me-dia and online advertising due to the tech savvy nature of the target consumers.

What’s our Big Idea?

“Do you own a vehicle that represents what you stand for?”

Creative Plan

Creative Plan

Selling Premise Unlike many car campaigns, which strictly focus their creative efforts on promot-ing the car and its features, our creative portion will place heavy emphasis on each individual behind the wheel. We don’t want to treat out target consumers as numbers, statistics or small black dots on a scatterplot. Rather, our unique selling premise will focus on the totality of ideologies, personality traits and meaningful values that make up each potential driver and simultaneously represent our en-tire demographic. We will place the Toyota Highlander Hybrid strictly in a position that highlights the positive attributes of both our target group and the vehicle in order to celebrate the relationship between owner and car. Each advertisement will illustrate this relationship and depict how the Highlander can be “custom-fitted” to each indivdual in fun, innovative and thought-provoking ways.

Big Idea and SloganOur big idea poses a very important question: “do you own a vehicle that repre-sents what you stand for?” For most consumers, the answer may not be as clear as they expected. Many car purchases are made for rational and logical reasons. A consumer may choose to buy one vehicle over another because it’s inexpen-sive, has good miileage, looks flashy or simply because it has four wheels to get them to work and back. However, most people don’t own a car that reflects their underlying moral beliefs or day-to-day lifestyle choices. Our big idea confronts this dilemma head on by offering a vehicle that not only carries meaning to our target group, but also allows drivers to adhere to the things they care about even after the purchase of a seemingly large SUV. Our slogan “Drive the Way You Live” indicates that with the purchase of this spacious, powerful vehicle, consum-ers will still be able to continue their eco-friendly behaviors and be as active as they were before. In fact, we propose that the Toyota Highlander Hybrid will only increase the amount of environmentally conscious efforts that one can make each day. Our target group is extremely proud of their choices to reduce carbon emissions/environmental impact and want others to know how they are helping to make a difference in the world.

ThemeLike our slogan, our theme for this campaign revolves around the idea of continuing an active, eco-friendly lifestyle after the purchase of a Highlander Hy-brid. Our theme and slogan “Drive the Way You Live” will be represented in each advertisement and will feature examples of how the vehicle fits into our target group’s uniue lifestyle.

TaglineAlthough the taglines will vary in each advertisement, they all share a common similarity by promoting the idea that the Highlander Hybrid is an extension of the consumer rather than something that contradicts with their way of living. One of taglines featured is...

“You don’t have to change who you are to drive the perfect car.”

This tagline corresponds with our slogan, theme and overarching big idea by informing potential buyers that their specific type of personality and lifestyle fits perfectly with the Highlander Hybrid.

The Creative AppealOur creative appeal is an extremely effective tool for consumers of the Highlander Hybrid or other active, modern, environmentally conscious people who have never considered a hybrid before. We emphasize the eco-friendlyfeatures/benefits of the vehicle in conjunction with the fact that it is still a large, 7-seater SUV with a 280 horsepower engine. By emphasizing these usually con-trasted features, we are depicting the Highlander as an all-around perfect vehicle for people who want both space and safety along with lowered fuel emissions and style. Our creative approach will only increase awareness of the Highlander’s often unknown features and will help establish the brand as an option for people who want to drive fashionably and help save the planet at the same time.

The “Drive the Way you Live” Magazine Ad Campaign

All three of our magazine print advertisements use our slogan and overarching theme “Drive the Way You LIve” in order to grab our target group’s attention and literally show them that this vehicle is an effortless and easy addition to their daily lives. Each advertisment, which was constructed together andcreated by hand from multiple images, shows a specific trait or feature that the car and consumer both have in common.

We wanted to illustrate how much the Highlander could be in-corporated with our target group’s hobbies and interests and served as a reflection of the driver himself. We did this by plac-ing the image of the Highlander in fun and creative ways that transform the vehicle into something much bigger than just a means of transportation.

In the first print ad, the Highlander literally becomes a kayak on the river, a play on the fact that our target groups are adventur-ous and that the car has the power, gas mileage and durability to get them to wherever they want to go. The primary topics of each ad --adventure, technology and safety-- are played up in fun, eye-catching ways in an attempt to deliver the message that you are what you drive.

Outdoor Advertising

Billboard (bus terminal)

Online Advertising

Web Banner

Introducing the 2013 Toyota Highlander Hybrid. Drive the Way You Live.

T.V. Advertising Anal- Spring Time Commercial

This television advertisement shows five distinct characters that fit into our target demograhic out and about en-joying their daily activities with the ac-compiament of their Highlander Hybrid. The commercial not only illustrates how the Highlander Hybrid is integrated into each person’s life, but also gives visual examples of what kind of people we are catering to as well as the meaning-ful, active and environmentally-friendly things that they like to do.

Woman in a farmer’s market parking lot standing next to her Highlander Hybrid. “Everybody has a reason for wanting an SUV…I wanted one for the storage space.”Woman opens trunk to fold down the seats. Puts in bags filled with plastic and aluminum recyclables and canvas bags filled with fresh organic produce from the market.

Man in hiking gear in driver’s seat of Highlander with his dog in the passen-ger seat.“I wanted one for the navigation.”Plugging in location to hiking destination on touch-screen GPS. GPS announces, “Routing…”Man pets dog and asks, “Ready boy?” Dog barks.

Woman leaving a boutique with her friends and walking to her Highlander parked on the street. She has shopping bags in her hands and a stylish dress on.”“I wanted an SUV for the style.”Laughing with her girlfriends as they get into her Highlander.

Women is walking with her sleeping newborn baby and is about to strap the child into the car seat of her Highlander.“I wanted one for the entire family to enjoy.”She puts the sleeping baby in his car seat. Her three children are all asleep in the back rows.

Quick shots going back to each charac-ter that was introduced before.Woman from market- “Because I…”Man with dog- “Because I...”Woman shopping with friends- “Like to drive...”Woman with baby (now driving to go back home)- “The way I live.”

VO: Introducing the 2013 Highlander Hybrid from Toyota, the only hybrid SUV that knows exactly what you want.”

Superbowl Commercial

This television advertisement is a humerous depiction of Highlander Hybrid drivers versus drivers of other vehicles. The main character in this commerical is our ideal demographic woman (family-oriented, eco-conscious, energetic). As she makes her way home from running errands, she unexpectedly runs into a host of charac-ters that don’t drive a hybrid like she does. Although comical in nature, the point of this advertisement is to show that the Highlander Hybrid is perfectly suited for a specific type of person and no one else. In other words, it caters directly to our target demographic and perfectly fits their lifestyle. It also gives subtle hints that anyone who doesn’t drive a Highlander Hybrid is in a pretty crummy situation.

Simply dressed modern woman gets out of work in the afternoon and walks to her Highlander Hybrid in the parking lot. She sees two very elderly people with heavy Brooklyn accents arguing while they drive away in a very slow, rusty Oldsmobile with smoke spilling out of the exhaust. She hops in her sleek and modern hybrid and heads down the road.

Same woman is in her car driving. She stops at a red light and looks out her driver’s seat window. A very

flashy, blinged out red convert-ible with too much car detailing pulls up next to her. The driver is a sleezy looking man with chest hair sticking out of his 70’s style shirt. He attempts to blow the woman a kiss. She smiles and looks ahead just as the light turns green.

Woman turns the street corner into her neighborhood. She is driving past a house with a child’s birthday party going on in the front. She sees a very miserable look-ing, birthday clown in his very tiny clown car while children run all around the yard.

Woman finally pulls into her driveway. She is content and smiling as she gets out of her Highlander, plants a kiss on her beloved SUV and says “Looks like we are truly meant to be.”

VO: Introducing the 2013 Highlander Hybrid from Toyota, the only hybrid SUV that gets you...for you.

Radio BroadcastAnal-*Sound of car door slamming and car being locked. Sound of shoes walking on the pavement.

Woman talking (monologue):

I know what you’re thinking right?

A hybrid SUV? From Toyota? Impossible.

The truth is... the Toyota Highlander Hybrid is the real deal.

It’s a real hybrid vehicle built for my really busy life.

With seven seats and maximum storage space, I have more than enough room for my family and friends.

*talking a little softer now* I even got my husband to load up the bikes inside and hitch up the boat last week for our trip to the Dells.

The best part about my Highlander?

With all the money we’re not spending on fuel, we can afford another trip this summer.

I’m thinking a cross-country roadtrip with the entire family.

Who says you have to sacrifice being green for being hip?

I can do both.

And I have.

VO: Introducing the 2013 Highlander Hybrid from Toyota. It’s a brand new way to go green, be active and drive the way you live.

Media Plan

Media Plan Positioning & Branding ObjectivesWith a budget of $80 million, our campaign uses a variety of media channels to reach our primary and secondary target markets in the most effective way. IMA-GEn will utilize a pulsing strategy and take advantage of regional emphasis in specific spot markets where both our audiences and a high number of hybrid own-ers reside.

Target DemographicOur primary target is a working mother who is 35-45 years old. She practices a “green” lifestyle and is active in her family’s life and her own. When she’s not at the office, she is busy picking up groceries, going to yoga, or driving her children to soccer practice. She needs a vehicle as versatile as she is. Our secondary audience is a married individual who is 45-66 years old. Because he is an empty nester, he has more time for traveling and adventure. While he leads an active and eco-friendly lifestyle, he wants a vehicle as “sexy” and hip as it is functional. Our tertiary market, business-to-business, will become a focus during our public relations campaign rather than media, as that is a more effective way to reach them. Our audiences are technologically savvy, but they also consume traditional media like television, print and radio. Focusing on both traditional and new media is the ideal approach to reaching our target markets and promoting the Toyota Highlander Hybrid.

National ReachOur national efforts will focus on primetime network and cable television pro-grams, with some allocation to network late night. Print advertisements will appear in seven general circulation magazines and three national newspapers. Our Inter-net campaign will also reach a national audience.

Regional Spot MarketingSpot advertisements will consist of outdoor media and morning and evening drive radio. We will also focus on spot television primetime and late night local news. According to Simmons, our target markets and a high number of hybrid owners reside in the western and northeast United States. Specifically, our campaign will

focus on four metropolitan locations: Los Angeles, San Francisco, Washington, D.C. and Philadelphia.

Timing Our campaign will begin in August 2013 and last for 11 months, ending in July 2014. We will utilize a pulsing strategy, increasing our advertising efforts to com-pliment public relations efforts and high auto sales months according to the NADA. The campaign will launch in August during the 2013 PGA Championship. According to Simmons, our secondary audience is highly likely to watch golf, including the PGA tour. Further, our public relations efforts include sponsorship with the tour. The first pulse of advertising will occur during October and Novem-ber. During this time, network television primetime programs kick off with fall pre-mieres, and, according to the NADA, December has consistently had high auto sales. Additionally, our audiences may be preparing for holiday shopping, and a public relations effort is scheduled for December. Our second pulse will come in February and March beginning with our Super Bowl 2014 advertisement to in-crease awareness of the Toyota Highlander Hybrid. March auto sales are typically high, and March 2013 resulted in the highest monthly sales total in more than five years. Tax returns also occur during the first quarter of the calendar year. Our last pulse will occur during May and June to compliment a public relations event in May and as preparation for another event in July. Additionally, July auto sales are consistently high, and our target markets often travel during the summer when they are likely to be reached by outdoor, radio and other advertising. Because our target audiences are made up of working individuals, we will advertise around the normal workday, focusing on primetime and late night television and morning and evening drive radio.

Media Selection

Television The largest portion of our budget will be allocated towards network, cable and spot television. Television advertising has the highest reach potential, and televi-sion previously lead the ad market in 2012, proving that it is a successful medium.

Network Television According to Simmons, our primary and secondary audiences watch primetime television programs such as The Biggest Loser, Dancing with the Stars, Modern Family and Grey’s Anatomy. We will place advertisements in these programs throughout the year but will take special advantage of sweeps weeks during No-vember, February and May. Additionally, advertising will be scaled back during June, July and August since these programs are either airing re-runs only or not

vember, February and May. Additionally, advertising will be scaled back during June, July and August since these programs are either airing re-runs only or not at all during those times. Advertisements will also run during late night national programs like The Late Show with David Letterman and The Tonight Show with Jay Leno since these programs result in high indexes with our audiences, accord-ing to Simmons.

Cable TelevisionAdvertisements will also appear during primetime programming on select cable channels. Simmons shows that our primary and secondary target markets watch large amounts of programming on HGTV, The Golf Channel and TLC. A large portion of our budget will be allocated towards cable in order to reach our specific markets while also increasing awareness of the Highlander Hybrid among the population who may be watching.

Spot TelevisionAs part of our regional emphasis, we will run advertisements during local prime-time and late night news programs in our four spot markets. According to Sim-mons, our target audiences consume both evening and late night local news on all major networks (ABC, NBC, CBS and FOX).

MagazinesOur second highest percentage of our budget will be allocated towards print ad-vertisements in national general circulation magazines. According to Simmons, our primary and secondary target markets read magazines like Better Homes and Gardens, Family Circle, Golf Digest, National Geographic, Shape, TIME and Travel + Leisure, reflecting their interests and active lifestyles. Because our target markets are active users of new technology, QR codes will appear on our maga-zine print ads and link to more information about the Highlander Hybrid and ongo-ing public relations events.

NewspapersSimmons reflects that our target audiences read national newspapers on a regu-lar basis. Advertisements will appear in three newspapers including The New York Times, The Wall Street Journal, and USA Today. According to Simmons, indexes were not significantly higher for one newspaper over the others.

RadioBecause our primary and secondary target markets are working individuals, we will run radio advertisements around the normal workday. Radio spots will air

air during the morning drive (6:00 a.m. to 10:00 a.m.) and evening drive (3 p.m. to 7 p.m.) hours when our audiences are most likely to be listening, according to Simmons. Further, we will focus on spot radio rather than national as it is a more efficient way to reach our select target markets.

InternetAccording to research, our target audiences are above-average technologically savvy and rely on the Internet to seek product information. Our online presence will include banner ads and keywords. Banner ads will appear on websites fre-quently visited by our primary and secondary audiences including Expedia.com, Weather.com, Mapquest.com and Amazon.com. We will also purchase keywords “Toyota,” “Highlander,” “hybrid,” “SUV,” “adventure,” and “lifestyle.” According to Simmons, Google was among the most popular websites frequented by our target markets. Thus, search words are an effective way to reach our audiences who may be seeking auto information.

OutdoorOutdoor advertisements including billboards will appear in our four spot markets for six months. They will appear in February after our Super Bowl promotions and will remain through March to increase awareness of the Toyota Highlander Hy-brid during March auto sales. Advertisements will return during May and remain through August. Our target markets frequently travel during the summer and are more likely to be reached by outdoor advertisements during this time.

 

 

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50  

100  

150  

200  

250  

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350  

Aug.   Sept.   Oct.   Nov.   Dec.   Jan.   Feb.   Mar.   Apr.   May   Jun.   Jul.  

Television  

Magazine  

Newspaper  

Radio  

66%  

16%  

7%  7%  

1%  3%  Media  Allocation  

Television  

Magazines  

Newspapers  

Radio  

Outdoor  

Internet  

Flow Chart

IMPACT MEDIA

MEDIA CATEGORIES DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Units

Super Bowl 0 0 1 0 0 0 0 0 0 0 0 0 1

PGA Championship 0 0 0 0 0 0 0 0 2 0 0 0 2

U.S. Open (Golf) 0 0 0 0 0 0 2 0 0 0 0 0 2

Outdoor 0 0 4 4 0 4 4 4 4 0 0 0 24

Internet Keywords 6 6 6 6 6 6 6 6 6 6 6 6 72

Internet Banner Ads 5 4 7 7 4 8 8 5 5 5 7 7 72

SUM TOTAL 11 10 18 17 10 18 20 15 17 11 13 13 173

NON-IMPACT MEDIA GRPS DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV TOTAL

MEDIA CATEGORIES

Network Television Primetime 712 15 10 95 80 30 105 15 13 15 75 135 124 712

The Biggest Loser (NBC) 5 4 38 25 0 0 0 0 0 17 33 31 153

Dancing with the Stars (ABC) 0 0 0 25 10 35 0 0 0 18 33 31 152

Modern Family (ABC) 5 3 29 15 10 35 7 6 7 20 35 31 203

Grey's Anatomy (ABC) 5 3 28 15 10 35 8 7 8 20 34 31 204

Network Television Late Night 164 10 7 15 15 5 16 16 6 8 10 28 28 164

The Late Show with David Letterman (CBS) 5 4 7 8 2 8 8 3 4 5 14 14 82

The Tonight Show with Jay Leno (NBC) 5 3 8 7 3 8 8 3 4 5 14 14 82

Spot Television Primetime 108 0 0 10 10 0 17 17 10 7 7 15 15 108

Local News 0 0 10 10 0 17 17 10 7 7 15 15 108

Spot Television Late Night 377 12 12 38 38 9 47 47 17 17 10 65 65 377

Local News 12 12 38 38 9 47 47 17 17 10 65 65 377

Cable Television Primetime 541 10 9 58 55 10 100 105 10 10 10 82 82 541

HGTV 4 4 20 19 3 30 31 2 2 2 25 35 177

The Golf Channel 2 1 18 17 4 40 43 6 6 6 32 12 187

TLC 4 4 20 19 3 30 31 2 2 2 25 35 177

National Magazines 193 0 0 15 14 0 52 52 0 0 0 30 30 193

Better Homes and Gardens 0 0 3 2 0 8 7 0 0 0 4 5 29

Family Circle 0 0 2 2 0 7 7 0 0 0 4 4 26

Golf Digest 0 0 2 2 0 8 7 0 0 0 5 4 28

National Geographic 0 0 2 2 0 8 8 0 0 0 4 4 28

Shape 0 0 2 2 0 7 7 0 0 0 4 4 26

Time 0 0 2 2 0 7 8 0 0 0 4 5 28

Travel + Leisure 0 0 2 2 0 7 8 0 0 0 5 4 28

National Newspapers 175 10 8 20 0 0 5 5 0 27 50 50 0 175

The New York Times 3 3 7 0 0 2 2 0 9 16 16 0 58

USA Today 4 2 7 0 0 1 1 0 9 18 18 0 60

The Wall Street Journal 3 3 6 0 0 2 2 0 9 16 16 0 57

Spot Radio Morning Drive 654 15 15 55 45 10 75 75 15 20 25 152 152 654

Los Angeles 4 4 15 12 3 20 20 4 5 8 40 40 175

Philadelphia 3 3 13 10 2 18 18 3 5 4 36 36 151

San Francisco 4 4 14 12 3 19 19 4 5 8 40 40 172

Washington, D.C. 4 4 13 11 2 18 18 4 5 5 36 36 156

Spot Radio Evening Drive 654 15 15 55 45 10 75 75 15 20 25 152 152 654

Los Angeles 4 4 15 12 3 20 20 4 5 8 40 40 175

Philadelphia 3 3 13 10 2 18 18 3 5 4 36 36 151

San Francisco 4 4 14 12 3 19 19 4 5 8 40 40 172

Washington, D.C. 4 4 13 11 2 18 18 4 5 5 36 36 156

SUM TOTAL 3578 87 76 361 302 74 492 407 86 124 212 709 648 3578

Media SpreadsheetTotal Budget Total Spent Remainder

$80,000,000.00 80,000,000.00 $0.00

IMPACT MEDIA SPENDING MEDIA CATEGORIES COST/UNIT UNITS/MONTH TOTAL NOTES

Television - Special EventsSuper Bowl 2,968,800$ 1 2,968,800$ 1 ad during Super Bowl

PGA Championship 1,141,850$ 2 2,283,700$ 2 ads during PGA ChampionshipU.S. Open (Golf) 1,141,850$ 2 2,283,700$ 2 ads during U.S. Open

Outdoor 35,000$ 24 840,000$ Outdoor for 6 months in 4 spot markets Internet Keywords 29,250$ 72 2,106,000$ 6 search words for 12 monthsInternet Banner Ads 3,000$ 72 216,000$ 6 sites for 12 months

SUM TOTAL 173 10,698,200$

NON-IMPACT MEDIA SPENDINGMEDIA CATEGORIES CPP TOTAL % ALLOCATION $ ALLOCATION GRPS

Network Television Primetime 33,103$ 34% $23,562,612 712Network Television Late Night 16,871$ 4% $2,772,072 164Spot Television Primetime 32,066$ 5% $3,465,090 108Spot Television Late Night 14,688$ 8% $5,544,144 377Cable Television Primetime 19,227$ 15% $10,395,270 541Magazines 64,733$ 18% $12,474,324 193National Newspapers 31,719$ 8% $5,544,144 175Spot Radio Morning Drive 4,240$ 4% $2,772,072 654Spot Radio Evening Drive 4,240$ 4% $2,772,072 654

SUM TOTAL 100% $69,301,800 3578

Public Relations Plan

Public Relations PlanPrimary Objective

Our primary objective is to increase awareness of the Toyota Highlander

Strategy OverviewOur integrated ideas for the creative strategy, the media plan, and public re-lations will yield an effective campaign that is grounded in research. The public relations plan includes events that will appeal to the people they are targeted to, and the strategic ways to reach them are also designed to capture their attention in places they are likely to be. The purpose of having these various events is to increase awareness of the Highlander Hybrid. As mentioned in the campaign strategy, the target audiences for the Highlander Hybrid are the Green Soccer Mom, the Active Empty Nester, and busi-nesses. Based on the varying values and behaviors for each of these diverse groups, our public relations plan in-cludes different events and strategies for reaching each group. The public relations event plans are split up ac-cording to each target. We want

consumers to understand that the High-lander Hybrid combines the best of both worlds— the space, feel, and look of an SUV, and the fuel efficiency of a hybrid. We want to bring the vehicle to the forefront of consumers’ minds and make it the final choice of consumers who are purchasing a vehicle.

Public OpinionAccording to a survey by Consumer Reports, people’s top concerns when buying a new vehicle are fuel efficiency, quality, and safety, respectively (1). In addition, consumers ranked Toyota the highest for brand perception, according to a 2012 survey by Consumer Reports (2). This means that consumers look to Toyota and are familiar with the brand, but may not be considering a purchase like the Highlander Hybrid because of its cost. Consumers may dismiss the vehicle because of the price, despite its excellent safety ratings and gas mile-age. Toyota’s major recall at the end of 2009 influenced the public’s perception of Toyota in a negative way. The company recalled 3.8 million vehicles due to the floor mat potentially jamming the ac-celerator. Gallup conducted a survey prior to and after the recall. Their data indicated that the recall led to a 13% decrease in the number of people who

had a positive association with Toyota (3). According to a Gallup Poll, 11% of cur-rent Toyota owners said that because of the 2009 recall, they would no longer consider buying a Toyota. Additional data from this survey indicated that 74% of current Toyota owners had not lost confidence in Toyota and over 80%

Stakeholders and their Concerns

Consumers-Toyota owners may still be wary about the recalls from the past few years, and it is crucial for Toyota to present itself as a transparent, honest company who truly cares about the people who drive their cars. In order to make these ef-forts visible to the public, we will pro-duce a monthly newsletter to be posted on the Toyota website about aspects of the company that we are working to improve. For example, this section may include a response to a recall or ad-dress the fact that some vehicles are not attaining the promised fuel econ-omy. People will have the opportunity to send in questions or concerns that they would like answered via the web-site. The newsletter will also highlight events or programs Toyota has initiated that the public will respond favorably to, such as partnering with charities or donating to select causes. Consumers appreciate transparency and know that no company is perfect, so if they see that Toyota is willing to share some of the obstacles they are trying to over-come, this will help people put trust in the Toyota brand. Employees at manufacturing plants -

It is vital that the employees at the manufacturing facilities are perform-ing at their optimum level because mistakes can happen when workers are not fully attentive. We would initi-ate a Wellness Program at each plant across the United States. Our rationale for starting this program is to help de-crease stress among employees be-cause it leads to a more positive work environment and we hope to make the employees feel valued and appreci-ated. The Wellness Program will focus on team efforts to form positive rela-tionships among coworkers and estab-lish a sense of community. Each team of approximately six or seven people will participate in monthly challenges, such as biking or walking a set number of miles for that month. Eating healthy will also be included in the program to promote another aspect of healthy liv-ing. Our overarching goal with the Well-ness Program is to prevent recalls from happening by ensuring that the employ-ees are observant, attentive and happy while at work.

Salespeople at dealers-The salespeople are the face of Toyota. Quality, personable salespeople at dealerships are absolutely essential in order for the public to have a positive image of Toyota in their minds. Visitors interested in purchasing a vehicle need to have a positive experience with the salespeople, and it is likely that they will turn to a different brand if they do not enjoy their visit. A new program to increase the effec-tiveness of salespeople at dealers will include an emphasis on hybrids, notify-ing customers of the Toyota newsletter, and providing accurate and specific de-tails about each model. All salespeople will be required to attend this session to learn more about increasing the effec-tiveness of their sales techniques. In order to promote hybrid vehicles, especially the Highlander Hybrid, salespeople will be trained to introduce hybrid technology to those who are interested in it, but also to those who appear hesitant about it. Providing a thorough explanation for people that are unfamiliar with it may help these people become more willing to pur-chase a hybrid. Regardless of whether or not the cus-tomers purchase a car, salespeople will notify people about the monthly Toyota newsletter right before they leave. Increasing traffic to the newsletter will help prospective buyers be aware of Toyota’s transparency and constant ef-forts to improve upon weaknesses. Salespeople need to be knowledge-able, and give specific and accurate in-formation about each model. Instead of providing general information such as, “This car is very safe for you and your

family,” they should say, “The Toyota Highlander Hybrid received a 2013 IIHS Top Safety Pick Award, meaning that it is one of the safest cars on the road.”

Shareholders and InvestorsThe top concern for investors and shareholders has been the recalls from the previous few years. In order to address this, we will send out an additional newsletter designed specifi-cally for this audience to inform them of Toyota’s progress and what the compa-ny is doing to improve in every area. In addition, they will have the opportunity to send in concerns via email, and their questions will be answered promptly and thoroughly to ensure that they con-tinue to trust Toyota. We will emphasize open communication and transparency to strengthen and maintain relation-ships with shareholders and investors.

Crisis Prevention and ManagementWe realize that with a newsletter that discusses Toyota’s obstacles, there is the possibility that the public will re-spond negatively. In the case of this happening, we will provide Toyota with

a statement to release immediately be-fore the media have a chance to report on it. Social media outlets are a possible site for generating negative comments about Toyota. We will make it our job to monitor Toyota’s Facebook and Twitter. We do not want either of these social media websites to be a source of nega-tive attention.

Toyota in the NewsIn addition to the recall of 2009, Toyota issued the recall of 7.43 million vehicles of various models in October 2012 because of a possible fire risk with the automatic windows (6). Toyota also is-sued the recall of 2.77 million Priuses and Corollas in November 2012 be-cause of a steering problem (7). In addition to the recalls in 2009 and 2012, Toyota returned to the limelight after the Nathan James advertising campaign. Many people disliked the child’s behavior in the ads and did not appreciate his attempts to try to make his family less “dorky.” Toyota respond-ed to the criticism by saying that they had not intended to offend anyone with this campaign, and that consumer re-search had led them to believe that the campaign would be effective. (5)

Issues Related to the Highlander HybridAlthough the vehicle is estimated to get 28 miles per gallon, some have found that their averages are lower than that estimate. This uncertainty surrounding the true fuel economy of the Highlander Hybrid is one issue for Toyota. If people

become convinced that it is barely outperforming the traditional Highlander in terms of fuel economy, they are not going to consider the Highlander Hybrid as an option. Consumers who purchase the High-lander Hybrid will need to have the vehicle for approximately six years before it pays off. This is another po-tential obstacle for increasing sales of the vehicles.

Planned events for Media Attention

Event that targets both the Green Soc-cer Mom and the Active Empty Nester:Gift Card GiveawaysDuring the month of December, we pro-pose a gift card giveaway. To increase traffic to the Toyota dealers and get people familiar with the Highlander Hy-brid, people will receive a $100 Visa gift card if they test drive the Highlander Hybrid. Anyone who came in for a test drive and received a $100 will be of-fered an additional $150 gift card if they can get a friend to come in and test drive the Highlander Hybrid. This mo-tivates both parties because they both have the opportunity of receiving $250.People must mention the name of the person who told them about the test drive so everyone gets the correct gift cards. Of all of the people who recom-mended the test drive to a friend and received the $150 gift card, two will be randomly selected to win a free High-lander Hybrid. We hope to include as many dealers as possible throughout the West so that people can easily go to their local location to participate. The giveaways will be limited to 2,000

of each gift card denomination.

Rationale: This is an event that is de-signed to get the word out about the Highlander Hybrid. It will draw in poten-tial customers to the dealerships and experience the Highlander Hybrid first-hand. Offering an initial incentive will draw people into their local dealer, and the additional incentive to spread the word to a friend utilizes word-of-mouth marketing. Word-of-mouth is a free tac-tic that is known to have a high degree of effectiveness. While at the dealer, customers will also become more in-formed about hybrid technology and this will open up options for people who may have not considered purchasing a hybrid vehicle before.

Event that targets the Green Soccer Mom and the Active Empty Nester:What’s your story? This event will allow people to share their experiences with Toyota in an on-line format directly on Toyota’s website. People can post about competing in the 5K race, what they bought with the gift cards if they participated in the test-drive event, or how much money they have saved on gas from purchasing a hybrid vehicle. When people, includ-ing non-Toyota owners, come to the website, they’ll be able to read thoughts from real Toyota owners.

Event for the Green mom with a family: Keep Communities Beautiful Toyota will team up with Keep America Beautiful and hold a 5K during the mid-dle of May. Keep America Beautiful has three main goals: reduce waste and promote recycling, litter prevention, and

community greening. This event will take these goals and incorpo-rate them into the race. To promote recy-cling and pre-vent littering, profits from the 5K will be used to bring recycling con-tainers to the community so people have the opportunity to recycle more. In ad-dition, the races will be set up to end at a local park where participants will get a tree to plant with their families to sup-port community greening. To get kids involved in the event, we will have a kid-friendly obstacle course. The children will be separated into one of three groups based on age (four to six-year-olds, seven to ten-year-olds, and 10 to 13-year-olds). Because these moms are active and are likely to buy organic foods, we will advertise the race in local gyms and at Whole Foods. We will also distribute a press release for local news stations so people hear about it while watching the news.Toyota’s Twitter page will include train-ing tips for running a 5K, and IMAGEn will set up Pinterest boards that can help runners at all skill levels. To make the Highlander Hybrid a sa-lient part of the race, we will ensure that there is adequate signage high-lighting the vehicle throughout the run-

that there is adequate signage high-lighting the vehicle throughout the run-ning course as well as at the finish line where many people will be. Once the race is over, there will be a drawing for winning a new Highlander Hybrid. Entry to the race is $35 for adult run-ners, and $10 for children. This year’s locations will be in Denver, San Fran-cisco, Portland and Seattle.

Rationale: These moms are physically active and care about the goodwill of their communities. Knowing that the race will bring more recycling contain-ers and trees to local parks would be an incentive for them to sign up for the race. These moms care about their kids as well, so associating Toyota with environmental friendliness as well as the importance of getting kids active will greatly appeal to this target group. To ensure that people are aware that the race is taking place, we will have flyers in local gyms and stores such as Whole Foods because these are loca-tions that the moms are likely to be. We will also send out a press release to local TV stations that can include information about the race on the news. These moms are likely to be active on social media sites such as Twitter and Pinterest. We will include running tips on Twitter, and create a Pinterest board containing pins to help people prepare for a 5K. In order to encourage begin-ner as well as competitive runners to sign up, we chose to have a random drawing for winning the vehicle. If we had arranged it so that the first place finisher would win the vehicle, this may prevent less-skilled runners from sign-ing up. By making it a random drawing,

people of all skill levels can sign up and have an equal chance of winning. We selected Denver, San Francisco, Port-land and Seattle because these cities are known for their high number of jog-gers.

Event for the Active Empty Nester: Toyota will offer a sweepstakes for win-ning a free Highlander Hybrid that the winners will drive to a US national park of their choosing for a weeklong vaca-tion. Toyota will compensate the win-ners for lodging and gas. People can enter the sweepstakes through June 30, and the trip will take place at the end of July.

Winners will take pictures of their vaca-tion and their Highlander Hybrid and post on Facebook and Twitter. The objective is to turn it into a storyline so people become interested in the next “chapter” of the winners’ journey. To capture interest of potential Toyota customers, photos from the trip from the previous year will be on TV screens at dealers, as well as on Toyota’s homepage during June.

Event for the Active Empty NesterSpokesperson: Bubba WatsonWatson has won numerous golf com-petitions, helping lead to his positive public image. He and his wife, Angie, have adopted one child, also contribut-ing to his overall good reputation with the public. Because Watson has a fam-ily, we will tie the versatility of the High-lander Hybrid to his life. The vehicle has plenty of space for both his family and his golf equipment. Choosing Watson as our spokesperson will appeal primarily to the Active Empty Nesters. This group is likely to watch golf, and associating the Highlander Hybrid with such a well-liked golfer can help make the vehicle more memorable and increase awareness for this group.

Business to business: Highlander Hybrid Educate SessionsWe will target green businesses that have traveling salespeople who need room for equipment, or who need more seat space than a car can provide. Toyota representatives will attend Op-portunity Green, which is a conference for green businesses to network with one another. During their time there,

they will set up sessions for compa-nies that are interested. During these education sessions, Toyota sales rep-resentatives inform the businesses of the discounted rates that Toyota offers for companies and educate them about the benefits of having more space for equipment or people all while getting better gas mileage than a non-hybrid SUV would. More and more companies are gen-erating Sustainability Plans. Business that choose Toyota for their company cars have the potential to improve their public image by making these plans public and notifying their stakeholders that this car is an important element of their Sustainability Plan.

Rationale: We intend for this to be an ongoing program. The abundant space, either for equipment or people, will be useful for helping businesses decrease their carbon footprint during their daily travels. By informing their stakeholders that they are taking steps to become greener, this will only improve the im-age of these businesses.

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ttp://search.proquest.com.ezproxy.library.wisc.edu/abicomplete/results/13C60E7F7761DF8B7D1/1/$5bqueryType$3dadvanced:abicomplete$3b+sortType$3drelevance$3b+searchTerms$3d$5b$3cAND$7ccitationBodyTags:toyota$3e,+$3cAND$7ccitationBodyTags:recall$3e$5d$3b+searchParameters$3d$7bNAVIGATORS$3dsourcetypenav,pubtitlenav,objecttypenav,languagenav$28filter$3d200$2f0$2f*$29,decadenav$28filter$3d110$2f0$2f*,sort$3dname$2fascending$29,yearnav$28filt00008,+fdbok$3dN,+siteLimiters$3dSourceType,_$25DocumentType,_$25Language$7d$5d?accountid=465er$3d1100$2f0$2f*,sort$3dname$2fascending$29,yearmonthnav$28filter$3d120$2f0$2f*,sort$3dname$2fascending$29,monthnav$28sort$3dname$2fascending$29,daynav$28sort$3dname$2fascending$29,+RS$3dOP,+jstorMuseCollections$3dJSTOR+MUSEALL,+chunkSize$3d20,+instance$3dprod.academic,+ftblock$3d1+660848+670831+194104+194001+670829+194000+660843+660840+104,+removeDuplicates$3dtrue$7d$3b+metaData$3d$7bUsageSearchMode$3dAdvanced,+dbselections$3d100  (69)http://adage.com/article/news/social-­‐media-­‐cult-­‐toyota/142335/  (70)http://www.mediabistro.com/prnewser/whats-­‐the-­‐pr-­‐price-­‐of-­‐toyotas-­‐recall_b47236  (71)http://search.proquest.com.ezproxy.library.wisc.edu/docview/218607109?accountid=465  (72)http://search.proquest.com.ezproxy.library.wisc.edu/docview/218607109?accountid=465  (73)http://www.toyota.com/about/environmentreport2011/06_cooperation.html  (74)http://search.proquest.com.ezproxy.library.wisc.edu/docview/218607109?accountid=465  (75)http://search.proquest.com.ezproxy.library.wisc.edu/abicomplete/docview/1287036577/13C65CC8028764E0FDB/12?accountid=465  (76)http://www.toyota.com.hk/inside_toyota/environment/report/10/relations_with_stakeholders.aspx  (77)http://www.toyota.com.hk/inside_toyota/environment/report/10/relations_with_stakeholders.aspx  (78)http://www.toyota.com.hk/inside_toyota/environment/report/10/environmental_philosphoy.aspx  (79)  Seekingalpha.com/article/1003181-­‐why-­‐is-­‐toyota-­‐motor-­‐the-­‐best-­‐auto-­‐stock-­‐to-­‐buy-­‐now  (80)www.toyota-­‐industries.com/ir/info  

 

Sources Situation Analysis Simmons Data 81) http://www.hybridcars.com/december-2012-dashboard 82 )http://www.afdc.energy.gov/data/tab/all/data_set/10301 83)http://upload.wikimedia.org/wikipedia/commons/b/b5/Top_selling_HEVs_US_cumulative_1999_2010.png  84) http://www.toyota.com/upcoming-vehicles/highlander.html  85)  Survey  

• Have  you  ever  heard  of  the  Toyota  Highlander?  o Yes=  87.5%  o No=  12.5%  

• How  did  you  hear  of  the  Toyota  Highlander  o Television  Ad:  86.4%  o Radio  Ad:  18.2%  o Billboard:  9.1%  o Word  of  Mouth:  22.7%  

• Did  you  know  the  Highlander  came  in  hybrid?  o Yes:  21.7%  o No:  78.3%  

• If  you  have  never  purchased  a  hybrid,  why  not?  o Expensive:  57.1%  o Small:  28.6%  o Safety  Reasons:  14.3%  o Exterior  Design:  14.3%  

• Would  you  be  willing  to  spend  more  money  on  a  hybrid  care  if  it  met  all  other  qualifications?  

o Yes:  82.6%  o No:  17.4%  

Sources

1) Simmons Oneview Data 2) NADA Data State of the Industry Report, 2011

http://www.nada.org/NR/rdonlyres/0798BE2A-9291-44BF-A126-0D372FC89B8A/0/ NADA_DATA_08222011.pdf

Contact: Chloe Derse

608-888-8888 or cderse@imagen.com

For Immediate Release: April 4, 2014

Winners at Toyota 5K Race Drive Home Highlander Hybrid

MADISON, Wis. — Toyota announced that they will be teaming up with Keep America

Beautiful to host 5K races in four Western cities throughout the month of May. All runners have

the chance to win a new Toyota Highlander Hybrid.

“This vehicle combines the space and power of an SUV with excellent fuel economy,

making it a wise choice for protecting the environment,” said CEO Matthew McKenna of Keep

America Beautiful. “We’re happy to be working with Toyota because their fuel efficient vehicles

prove their dedication to reduce their environmental footprint.”

The three central goals of Keep America Beautiful are to promote community greening,

prevent littering, and increase recycling. To support community greening, part of the profits from

the race will be used to purchase trees for the runners and their families to plant after the race at a

local park. To encourage recycling and deter littering, the remaining profits will bring recycling

receptacles to each community where the race takes place, thereby helping the organization

spread its vision.

“We are delighted to have the opportunity to engage in different aspects of

environmentalism outside of the efforts we put in towards making fuel efficient vehicles,” said

Toyota North American CEO James Lentz. “We’re thrilled to have the chance to directly

improve communities along with Keep America Beautiful.”

Following the 5K race, children have the option to participate in a kid-size obstacle

course. “It is so important to get our nation’s kids up and moving around,” said Lentz. “We want

to encourage children to be active and healthy.”

To sign up, people can visit www.toyota.com/run and view additional details about the

race. Those who will be running the race are encouraged to follow Toyota’s Twitter page, as it

will include tips for training for a 5K race. Toyota will also create a Pinterest board called “5K

Toyota.” The pins on this board will have advice for runners at all levels.

Denver, San Francisco, Portland and Seattle will be the locations for the races this year.

Entry is $35 for adults and $10 for kids.

# # #

Media Contact List San Francisco Jade Hernandez KTVU News Channel 2 Reporter Phone: (510) 834-1212 Address: 2 Jack London Square Oakland, CA 94607 Laura Anthony ABC 7 News Reporter Phone: (415) 954-7777 Address: 900 Front Street San Francisco, CA 94111 Jeff Pierce KRON4 News Reporter Phone: (415) 441-4444 Address: 1001 Van Ness Avenue San Francisco, CA 94109 David Baker San Francisco Chronicle Reporter: Editorial, Energy, Cleantech Phone: (415) 777-7000 Address: 901 Mission Street San Francisco, CA 94103 Max DeNike San Francisco Examiner Local News Editor Phone: (415) 359-2614 Address: 225 Bush, 17th Floor San Francisco, CA 94104 Denver Jenna Espinoza 9NEWS

Reporter Phone: (303) 871-1499 Address: 500 E Speer Blvd Denver, CO 80203 Russell Haythorn KMGH Channel 7 News Reporter Phone: (303) 832-0162 Address: 123 Speer Boulevard Denver, CO 80203 Karen Leigh CBS Denver Reporter Phone: (303) 830-6464 Address: 1044 Lincoln Street Denver, CO 80203 Bruce Finley The Denver Post Environment Reporter Phone: 303-954-1700 Address: 101 W. Colfax Ave. Denver, CO 80202 Renee Fajardo North Denver News Reporter Phone: (303) 458-7541 Address: 3236 Newton Street Denver, CO 80211 Portland Bob Heye KATU News Reporter Phone: (503) 231-4222 Address: 2153 N.E. Sandy Blvd. Portland, OR 97232 Mike Benner

KGW Channel 8 Reporter Phone: (503) 226-5000 Address: 1501 SW Jefferson Portland, OR 97201 Joany Carlin The Oregonian Environment and Health Reporter Phone: (503) 972-1000 Address: 620 SW 5th Avenue, Suite 300 Portland, OR 97204 Steve Law Portland Tribune Reporter Phone: (503) 546-5139 Address: 6605 S.E. Lake Road Portland, OR 97222 Andrea Damewood Willamette Week Reporter Phone: (503) 243-2122 Address: 2220 NW Quimby St. Portland, OR 97210 Seattle Amy Clancy KIRO News Reporter Phone: (206) 728-7777 Address: 2807 Third Avenue Seattle, WA 98121 Christie Johnson KING 5 Television Reporter Phone: (206) 448-5555 Address: 333 Dexter Ave. N Seattle, WA 98109

Brian Cantwell The Seattle Times Outdoors Editor Phone: (206) 748-5724 Address: 1000 Denny Way Seattle, WA 98109 Vanessa Ho Seattlepi.com News Gatherer Phone: (206) 448-8036 Address: 2601 Elliott Ave., Suite 300A Seattle, WA 98121 Denise Whitaker KOMO News Reporter Phone: (206) 404-4145 Address: 140 Fourth Ave. North, Suite 370 Seattle, WA 98109

Budget: Gift Card Event Media Tour: $500,000 Press Kits: $30,000 Media Relations: $50,000 P.S.A.: $10,000 Web Design: $100,000 Event Marketing: $500,000 Radio: $30,000 Sales Promotions: $500,000 in gift cards Buzz Marketing: $80,000 Consumer Promotions: $50,000 Total: $1,850,000 What’s Your Story? Web Design: $200,000 Total: $200,000 Keep Communities Beautiful 5K Race Media Tour: $40,000 Press Kit: $30,000 Media Relations: $50,000 P.S.A.: $10,000 Flyers: $10,000 Web Design: $30,000 Event Marketing: $500,000 Sales Promotions: $166,680 Buzz Marketing: $500,000 Total: $1,336,680 National Park Sweepstakes Press Kit: $30,000 Media Relations: $50,000 P.S.A.: $10,000 Web Design: $30,000 Event Marketing: $1,000,000 Sales Promotions: $45,000 Buzz Marketing: $1,000,000 Total: $2,165,000

Works Cited: (1) http://www.huffingtonpost.com/2012/05/23/consumer-reports-fuel-efficiency-cars_n_1540089.html (2)http://academic.mintel.com.ezproxy.library.wisc.edu/sinatra/oxygen_academic/display/id=174580/display/id=103014/list/id=103014&type=NSItem&class=MarketUpdate/display/id=652997 (3)http://www.gallup.com/poll/126236/Americans-Toyota-Owners-Confident-Toyota-Vehicles.aspx (4) http://www.forbes.com/sites/annemariekelly/2012/03/05/has-toyotas-image-recovered-from-the-brands-recall-crisis/ (5) http://www.autotrader.com/research/article/car-new-research/74693/is-toyota-lame-for-calling-parents-lame.jsp (6) http://money.cnn.com/2012/10/10/investing/toyota-recall/index.html?iid=EL (7) http://money.cnn.com/2012/11/14/autos/toyota-recall-prius/index.html