Running Head: Marketing Plan: 2013 Toyota Corolla Page |1

Marketing Plan: 2013 Toyota Corolla

Sabrina Mergenthaler

Colorado Technical University Online

*Author‟s note- This assignment contains portions that have been previously submitted

throughout this course.

Running Head: Marketing Plan: 2013 Toyota Corolla Page |2

Table of Contents

EXECUTIVE SUMMARY ……………………………………………..pg 3

SITUATION ANALYSIS………………………………………………pg 7
Industry Analysis
Competitive Analysis
SWOT Analysis
Consumer Analysis

OBJECTIVES…………………………………………………………...pg 12
Corporate Objectives
Marketing Objectives

MARKETING STRATEGY……………………………………………pg 14
Marketing & Distribution Channels
Corporate Social Responsibility
The Positioning and Communication Strategy

MARKETING PROGRAMS……………………………..……………pg 22

FINANCIAL INFORMATION……………………………..…………pg 24
Financial Assumptions
Budget
Sales Projections (1 year)

PERFORMANCE EVALUATIONS AND MONITORING………..…pg 26

Monitoring Ad Campaigns
Sales Analysis
Profit and Loss Statements
Meeting Schedule
Customer Profiling
Salesforce Evaluation

REFERENCES…………………………………………………………..pg 29
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Executive Summary

The 2013 Toyota Corolla requires the implementation of a marketing plan which

incorporates five main focuses: repairing damages of excessive recalls in past units; reinventing

the image of the Corolla; redefining new audiences; building relationships; and remaining

measureable (Vollmer, 2008). Developing these objectives into a well-oiled campaign relies on

clear understanding of, and effective representation of the company‟s goals to the right audience

(Armstrong & Kotler, 2006). Using the strategies of our marketing plan, which has been defined

by credible marketing research, we seek to increase American sales by seven to ten in the 18-34

year-old range by the conclusion of the fourth quarter in 2013 (Vollmer, 2008).

As we work towards achieving this goal, we have targeted an audience that includes men

and women between the ages 18 and 39, generating or backed by another earning $25,000-

$75,000/year. Though many are parents, the theme of safety is significant among our entire

audience. They are interested in purchasing a vehicle within the next 12 months that meets

certain safety, performance, style, and cost standards (Survey, 2012). Our strategy hits this

audience not only with the reinvented Corolla, but with an integrated message that lets them

know “It’s new…Again (Grewal & Levy, 2012).”

Driving towards increasing the sales of this market seven to ten percent, our campaign is

formulated on a positioning strategy that considers competitors, offers opportunities that build

brand awareness in our target market through optimized tactics, and remains measureable

(Alsem & Wittink, 2013). Like everything else within our marketing plan, our positioning

strategy maintains congruency with our intended market to increase the maximum reach—that is,

ascertaining the consistent marketing message tactic is actually hitting and sticking to the

intended market by conducting effective research and monitoring of metrics throughout the
Running Head: Marketing Plan: 2013 Toyota Corolla Page |4

campaign (Sirgy & Rahtz, 2007). To increase our reach, we focus on brand building

opportunities in frequency—or the number of times we can put the message and the Corolla in

the way of the consumer on a regular basis through integrated media channels such as

commercials, billboards, magazine, and much more (Piermatteo, 2012).

The details of the marketing plan—or the course of promotional action that will deliver a

consistent message across a variety of channels for the Corolla—are built upon company

objectives and strategies which have been identified not only through marketing research, but

conducting a situational analysis (Armstrong & Kotler, 2006). The situational analysis provides

insight to the environments affecting the Corolla and constraints which should be addressed by

our marketing (Alsem & Wittink, 2013).Using tools, such as the SWOT analysis, to define

strengths, weaknesses, opportunities, and threats surrounding the 2013 Corolla; our plan allows

us to adjust objectives and/or actions to enhance our marketing tactics (Winer, 2004).

Similar marketplace analyses have provided insight on the current issues surrounding the

Corolla—boredom (Nishimoto, 2012). Though our plan describes some modifications to

modernize the Corolla without redesigning the entire model, one thing that resonates with

familiarity among consumers of the Corolla is perfection. The Corolla‟s current consumer trusts

the seniority of the product to deliver on particular features they fell in love with in older models

(Piermatteo, 2012).

However, Corolla is looking for a new audience, and the reliability in the Corolla is such

that we can anticipate another audience who is looking for just that—parents and teens. For

parents, it means safety for their teens; and for their teens, it means freedom, trust, and

responsibility. For Toyota, it means generating a new loyal consumer base (Piermatteo, 2012).
Running Head: Marketing Plan: 2013 Toyota Corolla Page |5

Not only do we create a new audience through our plan, but we focus more on that

consumer through the four c‟s—or breed of marketing that emphasizes the gains for the

consumer over the company by positioning the product based on the consumer, communication,

cost, and convenience (Alsem & Wittink, 2013). Using the four c‟s approach versus a traditional

four p‟s approach—which unlike the c‟s approach, focuses on product, placement, price, and

promotion as it relates to the company—we have devised a plan that focuses on a series of

consumer relationship management tactics to take the new consumer from first-time car buyer to

lifetime Corolla buyer by giving them more bang for their buck (Winer, 2004).

As more consumers want the best bang for their buck, the Toyota Corolla generates a

wide target audience by satisfying that need (Tuttle, 2012). Our firm‟s marketing plan

communicates the value of affordability in a first and lasting car. As many teens and young

adults rely heavily on their parents for financing and even purchasing vehicles; why not have

vehicles you can confidently put yourself or your child into without having to break the bank to

make it happen? With special incentives, bonus buys, and strategized tactics in advertising and

personal sales, our approach builds brand equity and consumer loyalty, while being a product for

which consumers are willing to pay more (What is Channel Management Anyway?, n.d.).

But as you know, if something is not measureable, it‟s not worth doing (Piermatteo,

2012). It is essential to us, to you, and the Toyota family that our efforts do what they are meant

to do. Our goal is to increase sales. How our marketing drives consumers to purchase the Corolla

depends immensely on the reach, or how effectively influenced our target audience is by what

they see from us. That includes advertisements, press releases—both good and bad—news

stories covering Toyota‟s personal corporate responsibilities, and everything that contributes to

frequency. Frequency is simply how often our message is put before our segment (Arens,
Running Head: Marketing Plan: 2013 Toyota Corolla Page |6

Weigold, & Schaefer, 2009). In the case of vehicles we intend on putting our children into (and

just true in general) everything is marketing, and marketing is everything (McKenna, 1991). If

frequency is going to be high in anything, we want it to be high in our message and not high in

negative public relations (Armstrong & Kotler, 2006).

Considering the immense size and value of this campaign—which grabs our audience

from every venue they wish to be reached through—it is equally necessary to consider the

budget for Toyota‟s end. Depending on our choice of magazines, billboard sizes, prime time

spots, and so many more details—the cost of our campaign will be the roots of our success

(Vollmer, 2008).

Having conducted research on the types of media we will use, the location, and the

timing, we estimate a cost in this campaign to be anywhere from $2 million to $2.5 million.

Further details regarding specific costs can be reviewed in the financial section. Fortunately, our

plan is flexible at a moment‟s notice, which means we can potentially reduce costs, or possibly

see them rise (Armstrong & Kotler, 2006). However, our metrics will provide us the essential

information for making those decisions when necessary (Grewal & Levy, 2012).

Like many consumers, we believe the Toyota Corolla offers peace of mind in a vehicle

that has been perfected. However, recent recalls greatly affect the image of Toyota and the

perception of the company among consumers (TrueTrends, 2012). Our plan contends, though, if

parents grew up with us, then they can trust us to grow up with their children. We prove that by

giving them and their children exactly what they ask for in a car they can trust at a price they can

still afford. Our marketing plan not only reminds consumers of these ideas, but restores the

Corolla to a degree of penetration that surpasses all others in the industry, while delivering a new
Running Head: Marketing Plan: 2013 Toyota Corolla Page |7

image of Toyota to a new target family (Alsem & Wittink, 2013). The following details the

approach that will accomplish our mission.

Situation Analysis

Among the many approaches to gathering information regarding changes to market

conditions, companies, and products; the situation analysis provides us insight on the conditions

of the internal and external environments of particular companies and/or products (Grewal &

Levy, 2012). Also known as the SWOT analysis, the tool measures internal strengths and

weaknesses, and external opportunities and threats (SWOT Analysis (2), n.d.). Changes in the

marketplace that affect the SWOT analysis often occur due to changes in cultural, demographic,

social, technological, economic, and political conditions (Grewal & Levy, 2012).

As we review the SWOT analysis of the 2013 Toyota Corolla, we look for answers to

some of these questions:

 What are the advantages of the Corolla?

 What are the flaws of the vehicle?

 What future exists for the Corolla?

 What can hurt the Corolla further?

 What should we be focusing on?

 What should we improve or get rid of (SWOT Analysis, n.d.)?

In order to answer some questions, we will look at the facts surrounding current economic,

social, and cultural trends; predictions on future performance; competition; and more that

directly or indirectly affect the Corolla.

With the aid of this analysis, we can better position the 2013 Toyota Corolla for our

market (Sirgy & Rahtz, 2007). As well, continued use of these strategies allows us to monitor
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and maintain the success of our marketing plan by providing detailed information that will

enable us to make decisions quickly and effective (Armstrong & Kotler, 2006).

Industry Analysis

Despite the bleak outlook offered by the recent shutdown of Hostess Brands, the U.S.

economy is currently in recovery, and the auto industry has been a huge beneficiary (Halvorson,

2012). While not unlike any other auto company, Toyota took a huge hit during the recession

from decreased sales and excessive recalls (Ohnsman, 2012). However, Toyota‟s sales overall

have increased 12% since last year, and are expected to climb again in 2013 (Toyota's Financials,

2012).

Toyota leads the industry in sales overall and accounts for a leading 19.4% of the

American automotive sales (Krisher & Durbin, 2012). With the sale of compact cars expected to

rise as high as 20% by the year 2015, it is anticipated that the sale of the reasonably priced and

reliable 2013 Toyota Corolla will rise as well—as the bestselling vehicle in the nation, again.

While the recovery of the economy receives much of the credit for the rise in auto sales,

we credit the rise in sale of the Corolla to the current trends of society. Societal trends have

moved away from a individualistic

culture—which identified social status

and hierarchy based on material

possessions—to an environmentally

aware society (Grewal & Levy, 2012).

With consumers‟ minds wrapped around

things like fuel mileage, cleaner emissions, and hybrid technology we find them moving further

away from SUVs and trucks (Farooq, 2012). However, the 2013 Corolla is foreshadowed to be
Running Head: Marketing Plan: 2013 Toyota Corolla Page |9

outshined by the Dodge Dart, as it loses some of its competitive edge in pricing and other award

winning features (TrueTrends, 2012).

Competitive Analysis

While the bad news is that the Corolla does nothing to stand out, the good news is that it does

not stand out for being the worst, either. Toyota gets credit for being the most known brand on

the market; however the Corolla comes up nowhere in the competitor charts in terms of price,

model distinction, or performance (TrueTrends, 2012). Providing a competitive advantage for the

Corolla requires differentiating the car in pricing, quality, service, innovation, brand,

convenience, and anywhere else that makes it more desirable over its competition (McCrimmon,

2008). That requires knowledge on what things the company is doing right and those which they

are doing wrong.

In order to identify what is being done right and what needs improvement, it is necessary to

know who the competition is and what they are doing differently (Alsem & Wittink, 2013).

Regular assessment of the marketplace through surveying and other market research can provide

insights on the differentiating factors that separate the Corolla from its competition (Grewal &

Levy, 2012). Knowing the competition in and out is simple strategy that allows us to identify

things we can use with a little tweaking, and things we should avoid using in our marketing plan.

In some cases, we have even used models from external industries to influence new ideas in

presenting the newly, redesigned Corolla (Piermatteo, 2012).

Our research of the competition and consumers has not only clued us into the boredom with

the Corolla; but has identified some major differentiating components that could spark a shift in

the ignition of the 2013 Corolla‟s sales, as well as a rise in the price (Survey, 2012). While

differentiating the Corolla in as many categories as possible (price, quality, service, etc) can play
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 10

a significant role in our positioning strategy—or how we market the Corolla to our specific

audience—paying close attention to the needs and desires of our consumers means not only

finding out what they want in a Corolla, but delivering it better than our competition (Winer,

2004).

SWOT Analysis: Toyota Corolla

The SWOT Analysis for the 2013 Toyota Corolla, based on our research is reflected below:

Consumer Analysis

The new Corolla is for the fun-loving, yet, responsible and mature-for-their-age, 18-39

year old. The range includes young adults—college-bound, college-graduates, the working
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class—and parents of young drivers. With an annual income for the segment between $25,000

and $75,000, this audience can easily manage a monthly payment if the need exist.

This group enjoys a dependable vehicle that can handle a minor beating and mistreating

from their active lifestyle and driving habits. While their limited spending budget makes them

interested in the low-cost and fuel efficiency of the Corolla, Toyota‟s personal corporate social

responsibility policy is a sure win-over with the segment which pays close attention to the extra-

curricular activities of big companies.

This audience is easily found across the social platforms, such as Facebook, YouTube,

and Twitter. Their familiarity with modern technology not only plays well into their

communication preference through digital means, for instance—email and video marketing, but

integrates with the concepts we have in place to modernize and reinvent the Corolla (Nishimoto,

2012). Current statistics reveal that 74% of email accounts belong to consumers and will grow

another two percent by 2013. With majority users ranging in age from 15-40, our plan

acknowledges many technological efforts to as great assets in reaching our target (Radicati,

2012).

It is also important to note that this group is made up of two generations—the x-ers and

y-ers (Fox, 2012). We appeal to them by putting the Corolla on the stations they watch and listen

to most. As our audience is interested in reality TV, game shows, and prime time family dramas,

we look to place specific ads during shows like The Voice, Glee, Once Upon a Time, Survivor,

and The Bachelor, just to name a few (Radicati, 2012).

These generations, however, also have modern views of big companies, and have a

negative perspective on the auto industry due to recent bailouts and recalls. They are looking for

a vehicle they can trust to keep them and passengers safe, while offering modern-standard
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luxuries (such as, digitally integrated consoles); at a price that meets their budget (Survey, 2012).

We focus our marketing on the consumer of the 2013 Corolla to answer the call of what they

have been looking for in Toyota. By knowing the actions that will set buying behavior in motion,

we advance marketing strategies to fully capture our intended market (Arens, Weigold, &

Schaefer, 2009).

Objectives

Toyota’s Overall Mission

Toyota‟s mission statement declares their goals include gaining customers through

provisions of high-valued products and services, and the most satisfying experience of ownership

in America. This mission is topped only by the company‟s vision of being the most successful

and respected car company in America (Toyota‟s Mission, n.d.). With these values in mind, the

marketing plan of the Corolla reflects an evaluated approach of Toyota‟s quantitative and

qualitative goals, to ensure alignment with the current mission and success in achieving

(Armstrong & Kotler, 2006).

As a world-wide company, Toyota sets its goals based on world-wide sales. The current

objective involves world-wide sales of the Toyota Corolla to reach 10 million, and the American

sales of the Corolla to equate to ten percent of that (Mukai, Horie, & Hagiwara, 2012). For a car

that historically sells just above 750,000 units in American, the marketing plan aims to reinvent

the image of the Corolla and target a redefined audience in order to generate the additional sales

needed, by demonstrating the value of the Corolla and improving the relationship of consumers

with the Toyota family (Toyota Financials, 2012). Our intentions include adding features and

raising the price, which may ultimately affect the pursuit of our goal. However, our calculations
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prove that the sale of an additional 250,000 Corollas to meet our goal at our suggested starting

price of $18,999, is estimated to bring in more than $4.7 billion (Piermatteo, 2012).

In addition to satisfying profit and other quantitative goals, Toyota must brand the

Corolla with an image that matches the goals of the company. Among the highest ranking

dissatisfying qualities of the Corolla, consumers indicate the vehicle‟s blandness and typicality

as the culprit for declining sales (Tuttle, 2012). While price keeps the Corolla safely bundled as

the bestselling car overall world-wide, this differentiating strategy is certainly not lending to

achieving the company‟s vision of obtaining any kind of respect (Mukai, Horie, & Hagiwara,

2012). The plan our firm has put together understands this, and works towards reinventing

images for the Corolla and the company that brings the vehicle to us.

Marketing Objectives

Despite a few rough years of recalls on over a dozen of Toyota‟s products, the company

is on track with repairing the damage (Ohnsman, 2012). As a result, we can focus our efforts on

the marketing mix that will not only repair the extensive damage caused by those recalls, but

reinvents the Corolla, penetrates a new audience, builds relations with the consumer, and remains

measureable (Grewal & Levy, 2012). Instead of focusing solely on the typical marketing mix,

which utilizes a four p’s approach; we use the alternative marketing mix, which puts focus on the

four c’s: consumer, communication, cost, and convenience (Winer, 2004).

We know our consumers and what they want. Without simply modifying the Corolla‟s

features, we can address qualitative goals, such as repair of company reputation and reinvention

of image, through marketing the vehicle‟s valuable points and new features which give it added

support (Alsem & Wittink, 2013). Ultimately, our marketing goal focuses on increasing the sale

of the 2013 Corolla in this market by seven to ten percent. Our campaign utilizes a positioning
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 14

strategy that considers competitors, and offers opportunities that build brand awareness in our

target market through personal optimization (Alsem & Wittink, 2013).

Marketing Strategy

Like everything else within our marketing plan, our positioning strategy is congruent

with our intended market to increase the maximum reach—that is, ascertaining the consistent

marketing message tactic is actually hitting and sticking to the intended market by conducting

effective research and monitoring of metrics throughout the campaign (Sirgy & Rahtz, 2007).

To increase our reach, we focus on brand building opportunities in frequency—or the

number of times we can put the message and the Corolla in the way of the consumer on a regular

basis through commercials, billboards, magazines, dealerships, and much more (Piermatteo,

2012). The higher the frequency of our tactics, the more aware consumers become of the value in

the Corolla, and ultimately, the stronger our brand equity becomes. Building brand equity,

however, relies on optimized positioning strategies—or highlighting particular components of

the Corolla that deliver our message by demonstrating their benefit to our specific audience

(Sirgy & Rahtz, 2007).

Marketing & Distribution Channels

Our effective marketing strategy enhances reach—or direct influence on our target

market—by incorporating all of the differentiators necessary to make the Corolla stand out to our

market (Sirgy & Rahtz, 2007). These include:

 Product differentiations (features, quality, performance),

 Channel differentiations (communications with the company), and

 Image differentiations (image and perception of the brand across the

marketplace) (Arens, Weigold, & Schaefer, 2009).

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Using the value of the Corolla to navigate much of the marketing strategy incorporates

processing our message—it’s new, again—through a variety of mixed media to include:

interactive and non-interactive tactics in internet, television, direct mail, billboards, magazines

and many other distribution channels; to inform our audience of the benefits fitting their

particular needs in order to captivate and encourage their purchase of and continued loyalty to

the Corolla (Vollmer, 2008). Maintaining consistency in measurability, our tactics take cues

from maintaining a balanced scorecard, which is a tool used to track the performance of any

implemented strategies (Alsem & Wittink, 2013; Armstrong & Kotler, 2006). Below are some

examples of our intended distribution channels and marketing tactics:

 Television-The average American household has multiple televisions with an average

usage time of nine hours per day. Using data provided by the television bureau, we

have narrowed in on the shows and times our audience is focused on the television

the most (Television Bureau of Advertising, Inc., 2011). By exposing the audience to

commercials that pinpoint the value of the Corolla as it meets their particular needs

on the stations and at the times they are viewing; we generate the frequency necessary

to impact our market (Winer, 2004).

 Social Media- Though mobile technology takes a chunk out of typical desktop

lounging; Facebook is still on top when it comes to how much time its average users

spend on the site. Facebook acknowledges 604 million monthly active mobile users

make up only about 60 percent of its overall user base (McGee, 2012). However,

advertising through Facebook—and other similar sites—in an interactive way to

increase brand awareness among our consumers, and to push familiarity with the
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message, is a strategy we have perfected to achieve our goal of increasing the sale of

the Corolla (Marketing Philosophy & Strategy, n.d.).

 Email- The majority of consumer email users fall between 20 and 40 years of age.

The second largest group is teenagers and young adults (15 to 20 year olds). With

America accounting for 23% of all consumer email addresses, this makes for a great

opportunity to reach our consumer (Radicati, 2012). However, due to spam filters,

only about 20% of commercial messages reach user mailboxes and only 19.1% of

those get opened. Thus email requires greater care and effort to distribute without

becoming spam (Olenski, 2012).

 Direct Mail- Direct mail interestingly enough, transcends the age demographic, with

younger consumers (the 18- to 34-year-old demographic) preferring to learn about

marketing offers via direct mailers rather than online sources (Olenski, 2012). Our

message—it‟s new, again—combined with the right incentives will ultimately strike a

connection with our target and draw them to our locations where they can further

experience the relationship Toyota wants to build with its new consumer (Sirgy &

Rahtz, 2007).

Corporate Social Responsibility

The concepts and principles of corporate social responsibility (CSR) are not unchartered

territory for the company that suffered hit after hit from over a dozen recalls (Ohnsman, 2012).

Currently in recovery of these recalls, Toyota‟s CSR is more important than ever before as the

company progresses this marketing campaign. The marketing plan our team has put together is

based upon significant marketing research—including a variety of techniques to systematically

gather, analyze, and interpret details on marketplace conditions to make effective marketing
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 17

decisions (Armstrong & Kotler, 2006). I would like to take the opportunity to remind you that

our projected goals are based upon an audience of men and women between the ages of 18 and

39, generating between $25-75,000 in income a year, in order to increase sales within that

segment by 7-10 percent by the conclusion of the fourth quarter of 2013 (Grewal & Levy, 2012).

Having previously identified our target audience and generated a further understanding of

who they are and what they are looking for in a vehicle enables us to focus on the societal

marketing tactics and other strategies of an effective IMC strategy that will boost Toyota‟s

mission while building upon our consumer relationships. An effective IMC strategy includes a

variety of interactive and passive communications through different media like direct marketing,

online marketing, and public relations—which includes CSR strategies (Grewal & Levy, 2012).

While there are many interpretations of what corporate social responsibility entails, when

we discuss CSR, we are speaking about Toyota‟s governing behaviors in environmental

friendliness; social project participation; and employee relations—the three aspects of an

effective CSR plan (Alsem & Wittink, 2013). Toyota‟s publication: “CSR Policy: Contribution

towards sustainable development” defines the guiding principles of their approach to social

responsibility. According to the publication, Toyota stands by a “customer first” concept;

promises respect towards customs across borders; and addresses the company‟s search for better

methods and technologies (Toyota's CSR Concepts, 2012).

Toyota actively engages with communities in accordance with its stance on corporate

responsibility in many arenas. For example, in the recent wild fires of Los Angeles, Toyota

donated dozens of vehicles to the American Red Cross to aid in the rescue citizens and recovery

of the community (Toyota Keeps Disaster, 2012). While events like these are tragic, they are also

opportunities for Toyota and the Corolla to strategically position themselves to stand out.
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 18

Through challenges like these, opportunities to advance the marketing mix to incorporate

product, promotion, and placement arise. Partnerships with Red Cross, and other organizations

designed to help people—such as local churches, and children‟s wellness groups--are a great way

to skillfully manage CSR while increasing visibility and value of the brand among our specific

audience who have disconnected from big companies for a lack of CSR (Armstrong & Kotler,

2006).

The Positioning and Communication Strategy

Using the value of the Corolla to navigate the positioning strategy incorporates

processing our message—it’s new, again—through a variety of mixed media to include:

interactive and non-interactive tactics in internet, television, direct mail, billboards, magazines

and more; to inform our audience of the benefits fitting their particular needs in order to

captivate and encourage their purchase of and continued loyalty to the Corolla (Vollmer, 2008).

With location in mind, we are focusing on where our demographics and psychographics

meet—suburbanized areas, college towns, and medium to major cities. With proper training, our

dealers can recognize the profile of our target audience, and work with the resources provided by

this campaign to push the sale of the Corolla (Vollmer, 2008). Other factors that will aid in

positioning include differentiating components of the product, channels, and image. Since our

approach is built on strategies that strengthen the four c‟s (consumer, convenience,

communication, and cost), our differentiating factors will reveal distinctions, based on how they

relate to the consumer (Grewal & Levy, 2012).

Differentiations

Product. Our strategy starts the strong consumer relationship with an introduction to the

newly reinvented Corolla—with features that satisfy their needs in safety, reliability, and style at
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 19

a cost that meets their approval (Farooq, 2012). We bring these qualities to life in commercials,

billboards, magazine articles, advertisements, and social network posts. Our non-interactive

communications identify awards the Corolla has won for maintaining the highest rating in safety;

the addition of voice-activated, navigation and OnStar devices that keep the driver in-the-know

while keeping their hands on-the-wheel; and head restraints that limit the result of injury to the

head during rear-end collisions [(Vollmer, 2008), (Toyota, n.d.)]. Additionally, we employ

interactive product differentiators which accompany consumers down the marketing funnel with

courteous services prior to service—such as child centers, hassle-free sales, and on-site

educational and discount opportunities for parents and their new driver—and care after

purchase—such as reminder maintenance emails and texts, birthday wishes and bonuses, and

future loyalty discounts (Alsem & Wittink, 2013).

Channel. Because maintaining our relationship with the consumer is so integral to

Corolla‟s future audience, we also focus on the difference the Corolla offers in channels.

Reflective of the ease of communication with Toyota we look beyond the traditional methods of

telephone and emails—we embrace our modern market with text messages and notifications sent

directly to the Corolla‟s console. As the future consumes this new audience, the Corolla‟s

amenities will grow to adopt additional communication techniques that allow the consumer to

directly connect to the nearest Toyota dealership simply by pushing a button on the steering

wheel. By deploying a communication strategy that enables consumers to connect with Toyota as

conveniently as possible and retains qualities of modern and traditional communication devices,

we generate a service that all consumers within our market are able and happy to use (Vollmer,

2008).
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 20

As communication contributes immensely to perception and image, we seek to point out

current communication channels and strategies that provide an easier means for our consumers to

schedule repairs, communicate with company representatives, and file claims on warranty related

issues (Grewal & Levy, 2012). These strategies will be provided to our audience through

traditional means as well as more up-to-date means that match our market, such as mobile

applications, the Toyota website, the dealer website, and texting to a short code—or shortened

phone numbers that are more easily read and remembered (Vollmer, 2008).

Image. These efforts attempt to position the Corolla by adjusting image—or the way our

audience views and perceives the Corolla (Grewal & Levy, 2012). Currently and according to

our consumers, the brand is bland. The Corolla is not new. We make it new by giving it new

technologies that relate to our audience such as GPS, OnStar services, XM radio, and mobile

device integration capabilities (Tuttle, 2012). While these partnerships and extras are easily and

relatively inexpensive to add to the basic Corolla Model, the amount consumers are willing to

pay for these features in a brand they can trust is surmounting (Farooq, 2012).

To achieve further matching of our product to our audience, we focus not on amending the

car, but working with what it already has available. For example, the colors available for the

Corolla include:

 Barcelona Red

 Black sand pearl

 Magnetic Grey

 Classic Silver

 Super White

 Sandy Beach
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 21

 Nautical Blue

 Tropical Sea (Toyota, n.d.).

The colors listed in italics represent colors that reflect an older consumer. The simple

solution is to use colors that inspire a hip and young feeling. Toyota may even consider adopting

bright colors such as yellow to better target the younger audience. Modifications that are

available and can be offered include round tail lights and side decals (Nishimoto, 2012).

Creative Brief Communicator

New car buyers—especially first-time car buyers--are always seeking new and premium

features. The 2013 Toyota Corolla answers that demand with upgraded features and packages, in

addition to boosting the confidence in parents of young drivers. From additions such as active

OnStar, and Garmin navigation systems, the 2013 Corolla will not only enhance the safety and

confidence buyers want in a car, but is competitively priced to fit your budget.

The Toyota Corolla—already one of the best-equipped cars in its class—offers new

comfort amenities and upgrades to standard features that assist in creating a ride that drivers can

love and trust. All Corolla models include a standard display audio system with 6.1-inch touch

screen control panel for the AM/FM/CD system, six speakers and a USB port with iPod

connectivity. Bluetooth wireless technology allows for hands-free phone capability, music

streaming and phonebook access, and automatic sound leveling adjusts for outside noise. The

system also comes equipped with an auxiliary input jack. All of these great features—which can

be manipulated through steering wheel switches and voice control—mean drivers can keep their

eyes on the road and their hands on the wheel; making the 2013 Toyota Corolla the vehicle of

choice among first-time car buyers and young adults.

Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 22

Best of all, Toyota‟s running a back-to-school New Year‟s promotion. Now when you

buy a new 2013 Corolla—you get $1,000 towards the purchase of another. There‟s no reason

why everyone in the family can‟t have a safe and reliable vehicle they can trust, and Toyota

wants you to have just that! This savings will only last for three months, though. So hurry in to a

dealer today and get your peace of mind back when you put your trust in the Corolla.

Marketing Programs

In an effort to connect this age gap in our segment and maintain our 4c‟s approach, we are

introducing a channel management strategy—or a tactic that builds a formal program for selling

and servicing the clients in this particular segment (What is Channel Management Anyway?,

n.d.). When we build the strategy for the Corolla, we consider the following:

 Company goals and the goals of the Corolla;

 Building policies that enhance our programs (remember—any speed bumps hindering a

smooth transition through the process or program can do more damage than good);

 The benefits of the product specific to the audience;

 And, the sales and marketing programs that support the channel (What is Channel

Management Anyway?, n.d.).

Marketing Mix

Built upon the foundation of the 4c‟s, our strategy employs using a variety of tactics to

deliver a fun, bonding, and memorable first-car-buying experience, throughout the decision-

making and buying process (Grewal & Levy, 2012). Our plan utilizes what consumers want from

the car manufacturers, and builds those ideas into our loyalty programs, customer service and

support, market research, personal selling techniques, and promotions (Arens, Weigold, &

Schaefer, 2009). In addition to creating cohesion that allows us to reach this specific market with
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 23

a great product—that delivers safety, reliability, and comfort all in a conveniently priced

package—this strategy will boost our consumer relationship and increase customer loyalty by

providing a quality product and the ultimate experience throughout the lifetime of their

relationship with not only Toyota, but with the Corolla (Sirgy & Rahtz, 2007).

Creating the ultimate experience for this segment means connecting the buyers and the

drivers—parents and teens—as they make their first car purchase together. Based on our

research—these groups are looking at different ends of the spectrum when looking for features in

a car (Survey, 2012). The Corolla satisfies everything mom and dad are looking for in a vehicle

for their child—safety, reliability, and price. As a first car, it also offers many of the features

young drivers are looking for in a vehicle—style, comfort, automatic features, and luxury

amenities such as a CD player, GPS, and MP3 support (Fox, 2012).

Because of the offerings made by the Corolla, we feel it unnecessary for the buying

experience between parent and child to be anything, but pleasant. We achieve this experience by

instituting programs—such as:

 A monitored care center for younger siblings so that parents and teens can browse, test

drive, and get their questions answered in a stress-free environment;

 Educational opportunities in driver safety, and other vehicular features such as OnStar

and Garmin Navigation;

 Insurance partnerships—whereby consumers can get special discounts for purchasing a

Corolla or taking any of the safe-driving courses offered at our dealerships;

 And, follow-up communications—such as birthday fuel-up gift cards, maintenance

reminder emails and/or text messages, surveys (conducted online throughout the

decision-making and buying process and into the first year of ownership quarterly to
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 24

provide immediate metrics and measurability to our plan), and other promotional offers

the customer signs up for at no additional cost (Vollmer, 2008).

In addition, to being measurable and flexible, the strategy of this plan involves building

consumer loyalty through delivering on Toyota‟s promise to provide: high-quality products and

the best experience. With our message—it’s new, again—reminding parents that the Corolla was

once their car and can be trusted to carry their child; we re-establish a connection with a lost

audience, and build a relationship on the future. The Corolla can repair Toyota‟s image by

building relationships just like these that enhance the personal-feel of car buying, while

increasing loyalty, consumer satisfaction, and the success rate of reaching our goal (Arens,

Weigold, & Schaefer, 2009).

Financial Information

Financial Assumptions

As we all know, nothing in this world is free—everything comes at a cost. Our

marketing plan, however, is focused on consumer, and consumer cost. When we give consumers

what they want, the cost goes up for both sides (Nishimoto, 2012). We have advised equipping

the Corolla with some modern features such as onboard navigation, mobile device integration

capabilities, automatic and power features, and similar technologies to enhance the driver

experience. These will increase cost and affect price (Winer, 2004). Fortunately, with our

messaging reminding consumers that the Corolla is not only a long withstanding vehicle that can

be trusted, but it‟s new; the values to be discovered are those which our consumers have already

identified as worth paying more for (Tuttle, 2012). The benefit in this approach is that it enables

us to focus primarily on our target, without neglecting our existing consumers (Piermatteo,

2012).
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 25

Budget

Considering the immense size and value of this campaign—which grabs our audience

from every venue they wish to be reached through—it is equally necessary to consider the

budget for Toyota‟s end. Depending on our choice of magazines, billboard sizes, prime time

spots, and so many more details—the cost of our campaign will be the roots of our success

(Vollmer, 2008). Having conducted research on the types of media we will use, the location, and

the timing, we estimate a cost in this campaign to be anywhere from $10 million to $13 million.

Fortunately, our plan is flexible at a moment‟s notice, which means we can potentially reduce

costs, or possibly see them rise (Armstrong & Kotler, 2006). However, our metrics will provide

us the essential information for making those decisions when necessary (Grewal & Levy, 2012).

Budgeting Plan

The campaign‟s marketing calendar for the 2013 Corolla extends for 12 months, and

proficiently defines the exact expenditures and returns for the specific month, based on the

course of media deployments in their respective regions, during specific seasons (Developing

Marketing Strategy and Mix, n.d.). In the chart below, we have defined those expected

developments. These numbers assume cost of labor, production, and standard fees associated

with producing the advertising media.

Other Digital
(Car buying
Social Media sites, Toyota
Print (Magazine/News (Facebook, website,
Paper/ Twitter, Corolla Other (Events/
TV/Radio PressRelease/Billboard YouTube) Website) Tradeshows)
January $250,000 $150,000 $175,000 $65,000 $35,000/yr
February $25,000
March $25,000 $5,000
April $50,000 $150,000
May 350,000 $50,000 $5,000
June $100,000
July $20,000 $100,000
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 26

August 200,000
September $10,000 $5,000
October $75,000
November 400,000 $10,000 $5,000
December

Keep in mind that our firm charges a standard non-refundable deposit of $10,000 plus

0.01% of total sales at the conclusion of the campaign. By that, should the success of our

campaign perform at the nearly $4.8 billion we‟re expecting, Toyota can anticipate spending

approximately $4.8 million in our fees in addition to the anticipated $2-2.5 million in costs.

Sales Projections (1 year)

Backed by projections across the industry, we can confidently predict our marketing

campaign to reach its intended audience to produce our expected outcome (Farooq, 2012). We

seek to increase American sales by seven to ten in the 18-39 year-old range by the conclusion of

the fourth quarter in 2013 (Vollmer, 2008). Combined with strong support, customer incentives,

and loyalty bonuses, this plan not only generates the new audiences, but prepares formulating

their future in the Corolla Family (Marketing Philosophy & Strategy, n.d.). Our intentions

include adding features and raising the price, which may ultimately affect the pursuit of our goal.

However, our calculations prove that the sale of an additional 250,000 Corollas to meet our goal

at our suggested starting price of $18,999 is estimated to bring in more than $4.7 billion

(Piermatteo, 2012).

Performance Evaluations and Monitoring

Nothing is worth doing, however, unless it can be measured to have been

successful (Piermatteo, 2012). Each of our tactics is grounded in the concept of metrics. Each

approach gives consumers a different task—such as reporting to a website, mentioning a

promotional code, or completing a survey that enables us to know what lead them to us
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 27

(Vollmer, 2008). Using other approaches such as a balanced scorecard and regular auditing of

the marketplace, we can assess the value of our marketing strategies (Arens, Weigold, &

Schaefer, 2009). Based on these results, we are immediately able to adjust our strategy based on

strong and weak performances (Sirgy & Rahtz, 2007).

Conclusion

A marketing plan should have some flexibility for adjustment, especially in today‟s fast-

paced world. It should also include a variety of well-integrated tactics to deliver a consistent

message to targeted consumers. Our marketing plan for the Toyota Corolla incorporates five

main focuses: repairing damages of excessive recalls in past units; reinventing the image of the

Corolla; redefining new audiences; building relationships; and remaining measureable (Vollmer,

2008). Without simply modifying the Corolla‟s features, we can address qualitative goals, such

as repair of company reputation and reinvention of image, through marketing the vehicle‟s

valuable points. The Toyota Corolla is modern, stylish, safe, and more importantly, a car you can

trust. Instead of focusing solely on the typical marketing mix, which utilizes a four p’s approach;

we use the alternative marketing mix, which puts focus on the four c’s: consumer,

communication, cost, and convenience (Winer, 2004).

Through defining the vehicle‟s values, the new consumer profile emerges. Once

communication is established, brand loyalty incentives can ensue and marketing material can be

distributed at the appropriate frequency to learn more about the consumer. Marketing material is

not only a great way to generate a measurable source for success, but it allows Toyota to focus

on the needs of the individual consumer (Armstrong & Kotler, 2006)

Toyota‟s current societal marketing strategy assists with many of the objectives of our

marketing plan, as well as draws the attention of our target segment for the 2013 Toyota Corolla
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 28

(Alsem & Wittink, 2013). That new target audience has been identified as men and women in the

U.S. between the ages of 18 and 39, earning $25-75,000 per year, who are interested in

purchasing or leasing a vehicle that is reliable, affordable, and stylish in the next twelve months

(Vollmer, 2008). As we have identified through a series of marketing research tactics, our

consumer for the re-invented Corolla also, includes an audience whose societal trends and

current economic conditions greatly contribute to the new environmentalist perspective, which

promotes the good of all over the status of one (Farooq, 2012).

Understanding these concepts, the consumers, and the results of the Corolla‟s SWOT

analysis lend immensely to repairing the damages of the past, while preparing the audience for

the future through providing proper positioning of the Corolla on the marketplace (Armstrong &

Kotler, 2006). As our plan seeks to reach a new market, this analysis and positioning is integral

to the success of our campaign and the future of the Corolla (Grewal & Levy, 2012).
Running Head: Marketing Plan: 2013 Toyota Corolla P a g e | 29

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