Toyota Prius Hybrid way: principles - Business Plan Example

Marketing Plan Table of Contents 3 Introduction 3 Automobile Industry in Singapore 3 SWOT Analysis 4 References 8 Bibliography 10 This report includes a marketing plan for Toyota Prius. It starts with a brief introduction. Furthermore it also provides a brief overview of the automobile industry in Singapore. A well-structured SWOT analysis of the Prius is included. Then a detailed marketing plan includes strategies regarding four Ps in the context of Prius is included in this report. The report ends with a proper conclusion. Introduction Developing marketing plan is one of most important tasks of the marketers of a particular organisation. Success of any marketing campaign is heavily dependent on the quality of the marketing plan. This report includes a well-structured marketing plan for Toyota Prius Hybrid model in the context of Singapore market. It starts with a brief description of the automobile industry in Singapore. A brief SWOT analysis along with some specific sales and marketing objectives are included in the report. Furthermore the report also includes detailed marketing strategy regarding four Ps in the context of a new car. Automobile Industry in Singapore Singapore is one of the fastest growing car markets in the world. Automobile industry in this region has experienced annual growth at a rate of almost 11% during the period of 2003-07. In the context of car manufacturers there are huge opportunities in this region and this is supported by the fact that only 162 out of 1000 individuals in Singapore own a car, whereas in Western European countries almost 500 per 1000 individuals own a car. Despite of such interesting facts it is predicted that volume of car sales in the region might drop due to various regulatory issues like taxes, road fees and certificates that are related to automobiles. These surcharges are likely to increase the car prices. Consumers in Singapore do not find US cars attractive in terms of cost related to fuel, maintenance and repair (Chen, et al. 2010). Singapore is a highly competitive market for the automobile manufacturers. The market is dominated by the Japanese automobile giant Toyota that sold almost 146,597 cars in 2007. Nissan is the second largest car company in the region. Considering these facts a marketing plan is prepared for Toyota Prius Hybrid (US Commercial Service, n.d.). SWOT Analysis Strength Major strength of Toyota Prius Hybrid is its fuel efficiency. Excellent interior is another important strength of the model. It is a highly safe model that provides a quiet and comfortable ride. Moreover the car is powered by all types of hi-tech features. Since it is a high end hybrid car, the pollution created by it is significantly low. The greenhouse gas emitted by Prius is almost 50% as compared to tier 2 standard cars (Kentucky Division for Air Quality, n.d.). Weaknesses One of the major weaknesses of this car is its price. Its price is significantly higher than other cars that are of similar size. Moreover the fuel economy of this model is heavily dependent on the climate, season and driving style. Furthermore, specialist attention is required for repairing and servicing. An important fact is that there are several parts that are not easily available and this can be considered as a major weakness. Opportunities There are huge opportunities for the hybrid cars as the global society is becoming more and more conscious about the environment. Governments are also likely to promote the car manufacturers to produce more number of hybrid cars as they hardly pollute the environment. Threats Since manufacturers are trying to come up with more ‘green’ cars, there is possibility that the hybrid cars might face sustainability issues. As far as Toyota Prius Hybrid is concerned, it is likely to face tough challenges from other automobile giants Honda, General Motors, Ford etc. Each of these companies is making significant investment in order to introduce more fuel efficient and technologically high end cars. Objectives Major objective of the company will be to increase the sale volume by at least 5% by end of second quarter of the current financial year. In order to achieve this objective the company will focus on brand building. Another objective that the company will attempt to achieve is increase in market share by almost 10% and this should be attained by the end of third quarter of this financial year. If, these objectives are attained within the specified time period, then it is expected that the company’s profitability will automatically improve. As far as target market is concerned the company will target those consumers who always look for environment friendly fuel efficient cars. In the target market there are two segments that will be targeted by the company. One segment includes consumers who are very much environment conscious and the other segment includes the consumers who are conscious about their status and always look for high end, technologically advanced cars. These people can be considered as the innovators who consider technology as the central interest of their life. The detailed strategies regarding the four Ps are described in the following section. Four Ps Product This marketing plan is exclusively for the third generation Toyota Prius which is more powerful and bigger as compared to its second generation version. It is the most advanced car in the world (Toyota, n.d.). The engine is more powerful as horsepower is increased from 110 to 134. The body of this model is an inch wider and about four inches longer than its previous edition. In spite of large size and power, the new generation Prius is only car that offer 50 miles/gallon in highway driving. Toyota has managed to achieve such fuel efficiency as it has kept the weight of the vehicle low. Furthermore the company has used the best aerodynamics technologies in this car (Hybrid Cars, n.d.). All these features of the car will help the company to attain the above mentioned marketing objectives within specified time period. Price At present the price of Toyota Prius Hybrid is ranging within $22,800 - $28,070. The Prius Five is the costliest as it costs $28,070 (Toyota-a, n.d.). Prices are decided on the basis of the car’s features and functions. In order to achieve the above mentioned marketing objectives regarding market share, profit and sales volume, attractive pricing schemes will be offered to the target customers. Attractive schemes will also be offered in the form of after sales service. The company is already offering free service for five years (Toyota-b, n.d.). Consumers who will purchase the car over the coming two months will be entitled to some other special schemes. Place Toyota Prius will be available to the target customer through all the dealers of the company. New dealership will be offered in order to cover the entire market of Singapore. Consumers can also access the company website in order to place their order. They can even place customised order through the online presence of the company. Promotion The Prius Hybrid will be promoted in both electronic and print media in Singapore. The model will be advertised in some of the popular car magazines of Singapore. Popular movie stars and sports stars will be hired for television advertising campaign. Online platform will also be heavily used for the promotion purpose. Promotional activities will play crucial role in attaining the objectives regarding market share and sales volume. Conclusion Marketing plan is an important part of the entire marketing campaign. The above discussed marketing plan is prepared for Toyota Prius Hybrid car in the context of Singapore market. Major marketing objectives are in regard of the sales, market share and profit. In order to achieve these objectives within the given time period, it is very important to develop certain strategies. These strategies are developed in the context of four Ps of marketing i.e. product, place, price and promotion. References Chen, B et al. 2010. Selling Sedans in Southeast Asia, Kellogg School of Management, [Online] Available at: http://www.kellogg.northwestern.edu/Departments/International/InternationalFocus/Article/2008_Automobiles_in_Singapore_and_Vietnam.aspx [Accessed on June 29, 2010] Hybrid Cars, No Date. Toyota Prius, [Online] Available at: http://www.hybridcars.com/compacts-sedans/toyota-prius-overview.html [Accessed on June 29, 2010] Kentucky Division for Air Quality, No Date. U.S. Department of Energy Technology Snapshot — Featuring the Toyota Prius, [Pdf] Available at: http://www.air.ky.gov/NR/rdonlyres/0AC0B3BB-D85A-4292-860E-2E7780308881/0/TechSnapshotPrius_DOE.pdf [Accessed on June 29, 2010] Rodriguez, A and Page, C. 2004, A Comparison of Toyota and Honda Hybrid Vehicle Marketing Strategies, [Pdf] Available at: http://www.solsustainability.org/documents/cultivatingmarkets/A%20comparison%20of%20hybrid%20vehicle%20marketing%20strategies.pdf [Accessed on June 29, 2010] Toyota, No Date, PriusWorlds Most Advanced Car, Toyota Moving Forward, [Online] Available at: http://www.toyotasingapore.com.sg/cars/new_cars/prius/index.asp [Accessed on June 29, 2010] Toyota-a, No Date, Prius V, [Online] Available at: http://www.toyota.com/prius-hybrid/trims-prices.html [Accessed on June 29, 2010] Toyota-b, No Date, Toyota Moving Forward, [Online] Available at: http://www.toyotasingapore.com.sg/ [Accessed on June 29, 2010] US Commercial Service, No Date. 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