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????????Toyota Rav4 Hybrid?????????????????MGT 140University of California, DavisDoug FindlayJune 13, 2017???Jordan WallisExecutive OverviewToyota is a Japanese multinational automotive manufacturer and is known as the world’s second largest manufacturer, which can be attested to the statistic that Toyota was the first company to produce over 10 million vehicles per year and has done so since 2012. The company provides vehicles for many different audiences but it focuses on its sales in the hybrid electric vehicle market. Today, Toyota is the market leader in this field and is the largest company to encourage mass-market adoption of hybrid vehicles. This leads to products that are incomparable in engineering and blowing away their competition in the hybrid electric vehicle market. As a result, the audience they want to reach with the Toyota Rav4 Hybrid is the “At a Bargain Adventurist” who is a new working professional who most likely works in a city or suburban area and likes to travel to other destinations for outdoor expeditions. Due to the costs of long distances, either from commuting or their adventures, the target audience values what hybrid vehicles have to offer. This target audience also does not mind to spend extra on a car that will last through their endless journeys and provide significant value to them through its advanced features. While looking at the Rav4 it is important to see how it differentiates itself from its main competitors, the Nissan Rogue Hybrid and the Nissan Pathfinder Hybrid. Through analysis, it is easy to see that Toyota separates itself from its competition by providing customizable options tailored to the “At a Bargain Adventurist,” excelling at reaching the target audience’s needs, and the effectively displaying its value for the low price point. Marketing MixProductThe Toyota Rav4 Hybrid fulfils many needs of this target audience. The main needs being the ability to get to point A to point B reliably and affordably, the ability to bring all of their equipment with them, and the need to be safe while driving. These needs are fulfilled through the engineering behind the Toyota Rav4. Toyota has been making reliable vehicles for many decades and the brand alone fulfills the need of reliability while the hybrid aspect of the many Toyota vehicles addresses the affordability of travel. Specifically the 2017 Toyota Rav4 Hybrid offers an estimated 34/30 mpg. The crossover compact SUV design allows for the extra storage space while safety crash test ratings and the other safety features, like the Toyota Safety Sense technology. Through customization of the product, Toyota also offers mud flaps, cargo storage nets, roof racks, running boards, and tow hitches on the Toyota Rav4 Hybrid. Price2017 Toyota Rav4 XLE Hybrid - $29,5552017.5 Rogue? SV Hybrid - $26,6402017 Pathfinder $30,290While the price of the Toyota Rav4 is higher than its biggest competitor, the Nissan Rogue, and very close in price to the Nissan Pathfinder, the Rav4 Hybrid demands its price point through continuous standings as the best compact SUV Hybrid in the affordable segment. This price point is also not outrageous even for a non-hybrid compact SUV. In comparison, the non-hybrid model of the Toyota Rav4 starts at $24,410.The customer segment is also not extremely price sensitive. While looking for a car the target audience is looking for functionality over luxury. This means that the luxury models of SUV Hybrids, which may exceed the Toyota Rav4 Hybrid’s feature capabilities are out of the price range for this audience. This also means that budget options may not be the best fit as they would be lacking in the functions and safety features that the customer needs. Overall, increasing this price point would push the Rav4 into a luxury model, which it would not be able to compete, and decreasing this price point would not provide significant advantages in the market. PlaceWithin the dealership the Toyota salesperson will ask the customer’s needs that they want to be addressed through the purchasing of a new vehicle and depending on the person’s needs, the salesperson will match them with the car that is best suited to them. Once matched with the Toyota Rav4 the Salesperson will have the customer test drive the vehicle while highlighting the features that best appeal to them. PromotionOne of the main challenges about vehicle promotion is that the customers do not need to buy a new car very often and the promotions need to be constant in order to catch the customer’s attention when they are looking to buy. The way that Toyota achieves this is with consistent marketing through billboards, television advertisements, sponsorships, and print ads in newspapers and magazines. The most important aspect that Toyota addresses when advertising for the Toyota Rav4 Hybrid is that they need to advertise where the target audience will be. In the case of the Toyota Rav4 Hybrid, the print advertisements often reach hiking, biking, backpacking, and similar types of magazines as an attempt to have their target audience associate the Rav4 with their favorite activities and hobbies along with their other messages within the advertisement itself. Promotional Tactics that attract the “At a Bargain Adventurist”Creating associative connotation with the Rav4 and the “At a Bargain Adventurist’s” favorite activities. Figure 1Within figure 1, Toyota uses advertisements to create an associative connotation with their product and highlight some of the activities that the “At a Bargain Adventurist” does. In the figure, the print advertisement on the top left displays a group of people racing in the desert, the billboard advertisement includes a functional Rockwall display, and the video advertisement incorporates paragliding within its message. In this type of associative advertising, they do a step above in order to capture the “At a Bargain Adventurist.” The main competitor of the Nissan Rogue is not seen as this type of vehicle according to Nissan. For the “At a Bargain Adventurist” they think that their Nissan Pathfinder is a better option to address this type of associative connection. The Pathfinder is comparable to the Toyota Highlander, which is a full size SUV. In the advertisement seen in Figure 4, the announcer specifically references all of potential activities that could be done while in a Nissan Pathfinder which many of them revolve around camping and the outdoors but overall the advertisement does not inspire the courageous feelings that the Toyota Rav4 advertisements create. In the next sections, it is important to see how these outdoor activities tie into the other marketing tactics achieved by Toyota. Overall the value proposition of the advertisements seen in Figure 1 include the acceptance of other outdoor adventurists, the ability to take on any activity, and the thrill of those activities embedded in the car itself allowing the customer to have a thrilling vehicle. The competitor simply shows the value proposition of the ability to do many different practical activities with the vehicle as a tool but it does not have the excitement that the Rav4 brings to the table in its advertisements. Reaching the “At a Bargain Adventurist” through ads that address their needs such as safety, reliability, and customizable features.Figures 1 and 2The commercial’s primary goal in figure 2 is to highlight the new safety technology while incorporating an outdoor activity to connect with the target audience. In Figure 1, the advertising campaign of “How far will you take it” alludes to both the reliability of Toyota and the activities mentioned in the tactic above. The customizable features are also addressed in their multitudes of advertisements as many focus on one feature or the other. For example in Figure 2, the feature highlighted is the tow hitch that has the parasailing equipment attached to it. While the competitor does highlight similar features in their advertisements, Toyota is excellent at tying the features into the activities and creating a cohesive message that both relates and excites the target audience. In the Nissan Pathfinder’s advertisement shown in Figure 4 it almost seems like a walkthrough of what each feature does but not in a creative fashion. In this way the Toyota advertisements does a better job at inspiring interest in their creative use of the features while incorporating them into outdoor activities. The value proposition for Figure 2 mainly focuses on the safety feature, which allows the consumer to be safe no matter what activity they are performing, and allows the consumer to see that the car will always be there for them. Figure 1 also displays the reliability of the vehicle, which aligns with the value proposition. Effectively displaying the Toyota Rav4 Hybrid’s value for the relatively low price point in the hybrid crossover SUV market.Figure 3One of the most compelling arguments to buy the Toyota Rav4 Hybrid over other Hybrids is that the value of the Rav4 is excellently defined by the amount of features it has for its competitive pricing. Referencing the price points illustrated above, the Toyota Rav4 Hybrid is priced competitively to the Pathfinder, which matches the amount of customizable features. The Toyota Rav4 Hybrid is a little more expensive than the Nissan Rogue but the features are much more expansive and are more useful to the target audience. Through Figure 3, Toyota highlights the key differentiators that they have over Nissan’s offerings, which include the monitoring system within the Hybrid vehicle and the impressive mpg. In Figure 5, Toyota also highlights features such as the hands free trunk opening and the custom roof rack that stores two kayaks safely. Overall, for the price, the value of the Rav4 outperforms the similar sized competitor of the Nissan Rogue and matches the features of the larger Nissan Pathfinder. The value proposition of these advertisements is that the Toyota Rav4 Hybrid offers savings that the “At a Bargain Adventurist” can then use on their activities. In Figure 6, the competition mainly uses financing options in order to promote savings through the Nissan Rogue but does not package it in a way that has a unique value to the consumer. Messaging and PositioningThe unique messaging and positioning strategies achieved by Toyota in the advertisements for the Toyota Rav4 Hybrid are tailoring the ads to address the main pain points of the “At a Bargain Adventurist.” The main pain points of this target audience are social inclusion, feature versatility and reliability, and value. Social InclusionWithin Figures 1, 2, and 5 the common theme among them is that the activities features are depicted to be in groups. To illustrate this pain point in the print advertisement Toyota shows the group being together in their desert expedition. Next, in the parasailing video advertisement a man is driving while his friend is on the back parasailing off the trailer hitch. Finally, in figure 5 the video depicts a friendship where two friends bring their kayaks to race down the river and then sequentially race down the concrete steps in a city. While in Figure 4, Nissan depicts a family it is not the same as a friendship like the ones shown through the messaging behind the Rav4’s advertisements. Versatility and Reliability In order to address the versatility they display many different types of activities through their advertising campaign. For example, Figures 1, 2, and 5 all show off the various activities that can be achieved through the Rav4. In order to address reliability they use the messaging of the campaign ““How far will you take it” in order to show that the Rav4 Hybrid will last a long time and will go through anything you take it through. In comparison, the Nissan commercials focus on awards and achievement given to them through the industry, which simply do not connect as well with the target audience. ValueBoth Nissan and Toyota do a great job of distinguishing that their vehicle is worth the money for the features but Toyota excels at providing the intangible value of social inclusion, which leads them to be more successful overall. In figures 2, 3, and 5 Toyota highlights many of the same features shown in Figure 4 however they are more successful in resonating with the “At a Bargain Adventurist” because of the story based messaging attached to their marketing offers. SummaryOverall, the Toyota Rav4 Hybrid has the correct marketing mix in order to provide custom tailored messaging to the “At a Bargain Adventurist” who is drawn to their vehicle for their association to the product, the features that the product offers, and the value that the product holds. In each of these areas, the Toyota Rav4 Hybrid excels above its competitors of the Nissan Rogue and the Nissan Pathfinder either by having higher quality offerings or through sparking emotion in the target audience, which when ready to purchase a car, will choose the Toyota Rav4 Hybrid.AppendixFigure 1 2 3Figure 4 5 6 ................
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