Integrated Marketing Communications Plan for Toyota Camry in Thailand - Case Study Example

Integrated Marketing Communications Plan for Toyota Camry in Thailand Author’s name Institutional affiliation 1.0 Executive Overview This plan makes an outline for tactics of communications which will be used to enhance the level of awareness of the Toyota Camry in Thailand. The Integrated Communication Plan will change the perception about Thailand's unfavourable perception about the Toyota Camry. Toyota Thailand shall address various issues by use of advertising through television. The company shall also use internet to advertise and provide information to potential clients. This shall be achieved by use of websites which are visited most often by Thais. These sites would include news websites and sites by companies which are most sought after in the country. The integrated marketing communication shall delve into misconceptions which exist about the car. 1.1 Scope of the Integrated Marketing Communication Plan. This plan makes an outline of the objectives, tactics and strategies which Toyota Thailand aims to achieve are met. The plan also aims at providing the process through which the vehicles shall be introduced en masse to Thailand. 1.1.1 Marketing Objectives i. In the long run, Toyota Thailand aims at having increased sales for the Toyota Camry type of car by Thais. The company would like to achieve sales of about 450,000 vehicles during the first year which figure should rise to about 700,000 cars during the second year. ii. The company aims to have its sales increase by about 15% per annum. This increase shall be attained by use of advertising, promotions and other techniques which this plan clearly sets out. 1.2 Communications Objectives Toyota Thailand aims to ensure that more than 40% have information regarding the introduction of this massive campaign to make this vehicle attractive to many more people in Thailand. The company also seeks to take advantage of the increase in use of internet users in Thailand and the rise in the middle class. The company would like many people to be in a position to access information on its website and be able to purchase vehicles online through the use of credit card facility. 1.3 Issues and Challenges The target clientele is already exposed to other types of vehicles some of which are made by Toyota. It is difficult to change people's perception about a certain product (Rao & Monroe, 1999). Toyota Thailand intends to utilize its innovative ways of advertising to effectively inform the Thais that this type of vehicle suits their lifestyle and takes into account their economical changes. It is difficult to penetrate a market which has other players involved (Lambert, 2000). 2.0 Situational Analysis SWOT (Strength, Weaknesses, Opportunities, Threats) Strength: This program has very high chances of success because Toyota is a brand which is known and respected world wide. The company has been in the vehicle manufacture business for a long time (Beise & Rennings, 2004). This gives Toyota Thailand an advantage because most people will not be hearing about the company for the first time. Toyota makes vehicles which cater for both the high end and the low end markets (Ichijo & Kohlbacher, 2007). It is in this respect that Toyota beats other vehicle manufacturers. About 14 million people in Thailand own a car (Button, Ngoe & Hine, 2005). Those who have experienced the reliability of Toyota would be easy to convince about the good features and reliability of Toyota Camry which is not very popular in the Asian country. Weaknesses: The weakness of this program is due to the fact that people are already used to other vehicle models. Despite the rise in the number of people in the middle class, there is still the issue of global economic crisis. Another factor which works to the detriment of the company is that people have misconceptions about the costs of purchasing and maintaining the vehicle (Tanatvanit, Limmeechokchai & Chungpaibulpatana, 2003). Opportunities: This program is a first in the country. It provides an opportunity for people to use technology to access information on the type of vehicle that they would like to buy. Thailand is an emerging market with more and more people having loose cash to spare which they could use to purchase higher performing cars (Medlock & Soligo, 2002). The methods utilized by the company to market the product are calculated to get to as many people as possible. Threats: The state of global economy is not very good (Garrett, 2010). Many companies are being forced to cut down on the number of their employees while others are reducing the amount of money which they pay to their workers (Goldstein & Xie, 2009). This has a negative impact on the market of vehicles and vehicles which cost a little bit high thus are more likely to suffer a greater hit (Garrett, 2010). 2.1 Product History Toyota Thailand introduced the Toyota Camry about twenty five years ago (Tomofumi, 2009). The company plans to relaunch the Toyota Camry in the country. The aim is to ensure that customers get to know of the good features of the Toyota Camry. The company therefore aims to adopt new strategies to get a bigger market share. 2.1.2 Current Problems Facing the Product The main problem faced by Toyota with respect to its market for Toyota Camry has been lack of information on the part of the target market. There are not very many people who know about advantages of owning a Toyota Camry. This problem is attributable to lack of proper channels to pass the information the targeted market (Tomofumi, 2009). Another problem results from customers not being faithful to specific brands (Carrigan, 2003). Many purchasers of motor vehicles look for other options when deciding on which vehicle to purchase. Toyota has also suffered a bad reputation in the recent past regarding return of vehicles which had technical hitches (Goldstein & Xie, 2009). The economy is also a sensitive area. Incomes by some of the people who would be among those targeted have declined (Evenett, Hoekman & Cattaneo, 2009). 2.1.3 Current Messaging At the moment, Toyota Thailand rarely passes information regarding the different types of vehicles that it has in its possession for sale in Thailand. 3.0 Target Audiences 3.1 Target Market Process i. Identifying Market Process The target market being Thailand has been selected due to the rising number of people in the middle class. The economy of Thailand is growing which has resulted in more people having higher and disposable incomes. In this kind of scenario, people are bound to purchase vehicles which are of higher value. ii. Determining Market Segmentation This is pegged upon residents of Bangkok and other areas of Thailand. Many people who had high incomes were asked as to what they consider purchasing once they are able to meet their basic needs. Many responded by saying that a car would be at the top of their priorities. According to surveys conducted, about 14 million people in Thailand own vehicles and the projections are that this number is bound to rise (Medlock & Soligo, 2002). The market of those who are working was chosen because they are more likely to purchase high performance vehicles (Moosa & Panurach, 2008). iii. Selecting a Market to Target By targeting primarily the people in the middle class, Toyota Thailand tries to ensure that all those people willing and able to purchase vehicles do have the relevant information. The people targeted in this program are mostly those who live in large cities or in industrial towns and who have large disposable incomes. iv. Positioning through Market Strategies According to Medlock & Soligo (2002) survey, when people were asked what was the major factor to consider in purchasing a given car; most of the respondents stated that the level of income determined the type of car that they chose to buy. This was the response from about eighty per cent of the respondents. About ten per cent of the respondent cited the brand of the vehicle as the primary determinant in their decision to purchase a car. The car quality did not rank highly among the respondents' considerations in purchasing a motor vehicle. 4.0 Competition 4.1 Product Comparison At the moment, there are other vehicle manufacturers that are making good sales with regard to high valued vehicles (Young, 2009). However, there are no other vehicle marketers that have adopted a strategy better than that of Toyota Thailand. Toyota Thailand is a trailblazer in employing better tactics of marketing its vehicles in Thailand. The company is also aware of the large untapped market in the country (Heller & Darling, 2012). 4.2 Barriers to Entry. The company has the advantage of having been in the country for a long period and this makes Toyota a household name in Thailand. However, the company has not been very successful with the types of vehicles which are generally considered to be preferred by people with higher incomes (Heller & Darling, 2012). There are other brands of vehicles which are sold to the same group that is being targeted by Toyota Thailand. The fact that Toyota Camry is somehow a stranger in the market makes its entry a little bit harder bearing in mind there is a good number of brands of cars which are already established in the country. 5.0 Branding and Messaging 5.1 Branding Architecture Toyota Thailand will try to replicate the success of Toyota in other countries to raise interest in this type of vehicle in Thailand. The company plans to portray Toyota Camry as being as reliable as the other cheaper models and just as reliable and easy to maintain. The company shall rely on the availability of spare parts for virtually all Toyota vehicles and the fact that the vehicles are durable and able to tolerate harsh conditions. 5.2 Positioning Statement Toyota Thailand aims to make Toyota Camry the vehicle of choice for the ever growing middle class in Thailand. The program of relaunching the vehicles shall include as much information as possible. The company will also try to use attractive terms to attract clients. With this respect, the company shall offer attractive terms of paying for the vehicles purchased. Among the terms of purchase shall be a warranty for a whole year and the provision for free check ups for the vehicles (McGuiness, 2011). The company shall liaise with employers so that banks shall be able to offer attractive loans to those intending to purchase the Toyota Camry. 5.3 Value Propositions. The program by Toyota Thailand is unique in that it employs a myriad of measures which are aimed at ensuring customers get all the information. The company also focuses on ensuring that the clients get attractive terms of sale and in addition, the clients get to enjoy after sale services. Vehicles purchases in large numbers by other companies shall attract discounts due to the quantity purchased. People intending to purchase the vehicles will only be required to show evidence of being able to pay the whole amount and unnecessary procedures shall be avoided. 6.0 Communication Vehicles i. Promotion events Many of the people polled by the company's researchers stated that they got information about motor vehicles through events or other people. The company shall focus on ensuring good service to its clients. In addition, the company shall organize charitable events such as rallies where the proceeds shall be applied in a program which is beneficial to the society. The company shall maximize such events to ensure that potential clients get as many details as possible about the vehicles. ii. Television Television is almost like a necessity in many homes today. With almost every home having a television set, it would be very easy to pass information about the availability and reliability of the vehicles (Sangkhawasi & Johri, 2007). Some of the commercials will be intended to guide people to the company's websites which shall offer a more comprehensive coverage of the company's strategy. The commercial shall be slotted for times when most people are likely to be watching television. This mode is expected to be effective because many people regard television commercials as one of the best ways through which they access information (Amasaka, 2007). The company shall for the first three months present adverts on television during prime time news and other important periods of programming. These instances would include the times when there are favourite programs being aired and during sports times. The adverts will initially last about three minutes to give as much information as possible to the clients. After the expiry of the initial period, the company shall make necessary changes based on response received. iii. Magazine The company shall advertise through magazines. Different magazines are aimed at different audiences. The company shall identity those magazines which aim at the middle class who are the people most likely to buy the cars. Magazines provide a more permanent way of advertising in that one can refer to the advert time and again unlike a television commercial (Amasaka, 2009). iv. Internet Research shows that advertisements made on the internet are increasing in their value to marketers (Huang, Hu & Chen, 2008). Some of the internet avenues that would be preferred in advertising include facebook, youtube and google. Placing advertisements on any of these sites would guarantee the company of having many hits on its website. With regard to the internet, the company recognizes the power of the social media. Examples of the social media that the company intends to use include facebook and twitter. Customers and potential clientele shall receive constant news about any events organized by the company. They shall also be in a position to ask questions on any topic related to the motor industry. This should be a long term strategy for the company. v. Call Centre The company shall establish a call centre. This shall provide guidelines to people who call with any issues and queries with regard to Toyota Camry. The call centre shall be customer oriented and clients will have people with expertise in the motoring world giving them directions on what to do. 6.1 Communication Vehicles Benefits The advertising approaches adopted by the company fits very well with a modern society which heavily relies on television and the internet and television to receive information. These media shall provide the benefits that clients receive from the company. Clients will be able to know the kind of services which only this particular company offers and are not available anywhere else. Clients shall also receive useful feedback which they can use to make independent judgment on their continued relationship with the company. 7.0 Competitive Framework 7.1 Competitor analysis Toyota faces competition from other manufacturers such as Mitsubishi. Mitsubishi happens to have a manufacturing plant in Thailand. This would work in the favour of Mitsubishi since it would be considered more 'indigenous' as compared to imported Toyotas. Toyota Thailand would therefore have to set up a local manufacturing plant in the country. This would be attractive to Thais and it would also reduce the cost of production. The other competitor is Honda. Just like Mitsubishi, Honda has a local manufacturing plant in Thailand and this would tilt the market advantage in its favour as opposed to Toyota (Sangkhawasi & Johri, 2007). To maintain a competitive edge, Toyota would require setting up a plant to manufacture Toyota Camry in Thailand. 7.2 The potential opportunities which Toyota Thailand may act on The company should take advantage of its established infrastructure in Thailand. The company needs to look at the rising numbers of people who are getting into the bracket of middle class. The company needs to focus on providing other services which the competitors do not as a practice offer. The company could consider having a day where customers would be taken through what the company has to offer and such clients could have free checks on their vehicles. Toyota Thailand could also consider partnering with financial institutions which would finance the purchase of vehicles and this would help them increase sales. Toyota should also take advantage of any reduction that may arise in the importation of vehicles by its competitors (Amasaka, 2009). 7.3 Competitive advantage of Toyota over competitors. Toyota has a competitive edge over the competitors. The first thing that works in favour its favour is that Toyota is a household name. As the slogan goes, ‘the car in front is always a Toyota’. Toyota as a company takes care of the needs of every segment of the society (Amasaka, 2009). The vehicles manufactured by Toyota are thus affordable to many people. Spare parts and accessories for Toyota vehicles are easily available and cheap. In relation to spare parts, many models of Toyota can use the same type of a spare part and this saves a customer the hassle of having to spend too much time looking for such vehicle parts. Toyota vehicles are known for their fuel efficiency and good performance. References Amasaka, K. (2007). The Validity Of Advanced TMS: A Strategic Development Marketing System - Toyota’s Scientific Customer Creative Model Utilizing New JIT. International Business & Economics Research Journal, 6(8): 23-64. Amasaka, K. (2009). 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