Marketing Assignment

Submitted to: Miss Afifah Sardar

By: BBA-3A
CANVAS
GROUP MEMBERS

FA L A K M A L I K 39365
A I M E N AYA Z 38865
AMNAH KAMRAN 38877
SYEDA LUBNA AMIR 40019
A K A S H P E RVA I Z 38867
 Honda Motor Company
Honda Motor Company, Ltd is a Japanese public multinational
corporation primarily known as a manufacturer of automobiles
and motorcycles. Honda has been the worlds largest motorcycle
manufacturer since 1959, as well as the worlds largest
manufacturer of internal combustion engines. Honda surpassed
Nissan in 2001 to become the second-largest Japanese
automobile manufacturer. Honda is the sixth largest automobile
manufacturer in the world. The company achieved the number
one position among all mass production cars sold in the USA.
TAG LINE: The Power of dreams
USP : Design, comfort and luxury at affordable prices
 SWOT ANALYSIS
STRENGTH WEAKNESS
1. Honda is the sixth largest automobile 1. Cost structure of Honda is high
manufacturer in the world selling cars as compare to other
in over a 100 countries
automobile manufacturers
2. Excellent branding, advertising and
after sales servicing  2. Caters to only the upper
middle segment which limits
3. Honda has over 180,000 employees the customer base
globally 
3. Honda has to recall a few of
4. High and powerful research and
development R&D their models for corrective
measures which caused a lot
5. High brand equity and brand loyalty of hue and cry
amongst customers
6. Eco-friendly Honda Prius enhanced
the brand image
OPPORTUNITIES THREATS

1.  Developing hybrid cars 1. Government policies for the

automobile sector across the
and fuel efficient cars for world
the future
2. Ever increasing fuel prices
2. Tapping emerging
markets across the world 3. Intense competition from
global automobile brands
and building a global
brand 4. Substitute modes of public
transport like buses, metro
3. Fast growing automobile trains etc.
market
Toyota Motor Corporation
Toyota, the founder of the Toyota group of companies, started
Toyota as a textile machine company. Launched first car in 1947.
Toyota production system formed in 1950 based on just-in-time
principle. Overseas production starts in 1959 (BRAZIL). Ranked
6th in fortune global 500 list
Toyota seeks to create a more prosperous society through
automotive manufacturing and to sustain profitable growth by
providing the best customer experience and dealer support.
TAG LINE: Design Your Passion
USP : Reliable, well-known name in design of automobiles and
parts offering innovative solutions
 SWOT ANALYSIS
STRENGTH WEAKNESS
1. Domestic Market is strong since 1. Intense competition means
1918
limited market share growth
2. High Growth Rate
2. Weak Presence In emerging
3. Skilled Manpower with close to Markets
35,000+ employees in the company
4. Innovative Solutions and strong
R&D
5. Brand reputation and strong brand
portfolio
6. The company has been recognized
with several accolades and awards
OPPORTUNITIES THREATS
1. New Product Development 1. Rising Cost of Raw Materials
2. Changing Customer Needs 2. Global Economy and increase
in Labor Costs
3. Increasing Fuel Prices leads to
need for car designs that are 3. Economic recession and
fuel efficient fluctuating prices
4. Hybrid Option leads to scope 4. Stringent emission norms
for more parts and innovative
designs
5. Growth through Acquisitions
MARKETING PLAN OF TOYOTA PRIUS:
“TOYOTA PRIUS HAS ADOPTED THREE BASIC RUDIMENTS
TO DEVELOP AN EFFECTIVE AND EFFICIENT MARKET
PLANNING AND THOSE THREE ELEMENTS ARE: GREEN,
SAFETY, CONSUMPTION EFFICIENCY, AND LOW
OPERATING COST.”
Executive Summary
“Harmony Between Man, Nature And Machine.” For the first time, a car
company has struck a balance between the needs of man and nature by
building the third-generation 2010 Prius. Consumers can get virtually
everything they want for themselves in a hybrid car including advanced
technology, extra power, space, safety and 50 miles per gallon all while
providing fewer smog-forming emissions. Since 2000, the hybrid craze
has started and it is not going to stop. While first and second generation
Prius targeted innovators and early adopters of new technologies, the
third generation Prius focuses on market influencers who have a desire
to get a better bang for their buck and who have a commitment to
reducing oil dependency. 
 SWOT ANALYSIS
STRENGTH
1. Global organization, with a strong
international position in 170 countries
worldwide
2. High financial strength, sales growth of
29.3% since 1997
3. Strong brand image based on quality,
environmental friendly (greener),
customized range
4. R&D, biggest spend amongst car
manufactures
5. Industry leader in manufacturing and
production. Maximizes profit through
efficient lean manufacturing approaches
(e.g. Total Quality Management) and JIT
(Just in Time) manufacturing
WEAKNESS
1. Prestige/image has been influenced
because of large recalls
2. Production capacity. Toyota produces
most of its cars in US and Japan
whereas competitors may be more
strategically located worldwide to take
advantage of global efficiency gains.
3. View as an foreign importer
4. Compete with local giant Auto
companies and unions
5. Understand local cultures and markets
OPPORTUNITIES
1. With oil prices at an all time
high – this investment and
widening of product portfolio
fits consumers looking to
alternative sources of fuels away
from gas guzzling cars
2. To produce cars which are more
fuel efficient, have greater
performance and less impact on 3.
the environment 4.
3. Continued market expansions
combining with former models
THREATS
1. Saturation and increased
competition, intense marketing
campaigns increasing
competitive pressures
2. Shifts in the exchange rates
affecting profits and cost of raw
materials
Global economy downturns
Strong government supports
and subsidies of local auto
companies
 MARKETING STRATEGY

Product
The 2010 Prius gets an estimated 50 miles per gallon and has an official capacity of 11.9 gallons. Masterfully
redesigned, the Prius 2010 is more stylish than its predecessors. They have even added optional accessories that
are "revolutionary" in the auto industry such as a solar powered moon roof that can cool the car on hot days, and
also added the intelligent parking assistant. All of these new properties can help improve the sales and better
satisfy the target market with an image of environmental friendly, efficient, stylish, comfortable and economic
vehicle.

Price
They decide to use the penetration pricing strategy instead of the skim pricing strategy because the demand for
hybrid cars is elastic, and the quantity of cars bought will increase as prices decline plus the car itself will gain
mass appeal faster . With Toyota`s strong balance sheet, Toyota is also able to compete with other car makers by
offering competitive financing and lease rates throughout all its 1200 distributors in the United States alone.

Promotion
The Prius is promoted in many different ways, mainly through advertising ,sales promotions and personal selling .
Of interest might be the fact that the Prius has been featured in dozens of movies and TV shows as the car driven
by the main actor, such as CSI Miami, Weeds, Evan Almighty, and Superbad. To top of the list, a few notable
Hollywood stars have been raving about the Prius, which would also help build good reputation and appeal to
customers.

Place
Currently Toyota controls about 16% of the market share and Prius controls about 75% of the HEV market share in
the United States. five major assembly plants in the United States which support its distribution(place) network.
Moreover, all marketing, sales, and distribution in the U.S. are conducted through a separated subsidiary, Toyota
Motor Sales, U.S.A., Inc.
Financial Data and
Projections
U.S. sales of the Prius began in August 2000. By 2001 sales there totaled
15,556, and by 2002 had reached 20,119. In 2004 sales there were
53,991, and doubled in 2005 to 107,897, about 60% of the world total
of 180,000. By June 7, 2007, 266,212 Prius had been sold in the U.S.,
and accounted for 40% of the hybrid market there in 2006. As of
November 2007 Toyota has sold 510,325 Prius in the US since its initial
launch in 2000. Prius gasoline-electric hybrid mid-size sedan reported
sales of 14,212 units for a best-ever December and best-ever year-end
sales of 181,221 units, up 68.9 percent over 2006. Moreover, according
to our estimate, HEV will occupy around half of the market share in
2035, and Prius will get 80% market share. In 2010, our full-year sales
projection of the new Prius will be 180,000 units in U.S., 28.85 percent
higher than 2009.
 Implementation Control
Increase Value to the Customers

Toyota can create information packages instructing consumers about the details of and the steps to apply for
hybrid tax credits and employer subsidies. Toyota can assist consumers in completing application documents as a
step in the closing / financing customer service process.

It would be useful for Toyota to emplace Prius at rental agencies and shared car pools such that customers can
rent the Prius as an “extended test drive”.

Toyota should actively support lobbying groups (I.e. CALCARS) to encourage the continued lobbying of tax
credits, to encourage the public awareness campaigns, and to encourage the creation of a community of right
thinking hybrid owners.

Improve the Business

Toyota should invest in improvements in battery, charging, and metering technologies. Patenting these
technological improvements will serve to create competitive advantages.

Toyota should experiment with and conspicuously utilize low weight, high efficiency materials carbon fiber,
aluminum, and high performance plastic vehicle components.

Toyota should actively engage municipalities, employers, and power companies to arrange for the emplacement
of charging station facilities throughout the community to allow for the full utilization of the HEV functionality.

Toyota should invest in high performance solar components to allow for electricity generation and capture while
cars are operated and parked mid-day.
M A R K ETI N G P LA N H O N D A C I V I C H Y B R I D :
“ H O N D A H A S B E E N A L E A D E R I N F U E L - E F F I C I E N C Y A N D L O W- E M I S S I O N
T E C H N O L O G Y. W I T H A L L O F O U R P R O D U C T S , W E W O R K T O B A L A N C E Y O U R
DESIRE FOR FUN AND PERFORMANCE WITH SOCIETY'S NEED FOR CLEAN
A I R A N D WAT E R . ”
Executive Summary
The civic hybrid is a sedan with seating for five and is an extension of the
already popular Honda Civic. After its introduction; between 2002 and
2003 sales of the hybrid had increased 59 percent. The goal of this
hybrid was to have superior fuel economy, solid performance and to be
easy to use as an everyday mode of transport and as far as a hybrid
would be concerned, it was.
 SWOT ANALYSIS
STRENGTH WEAKNESS
1. Pioneers of Hybrid technology. 1. It only produces 50,000 Hybrid
2. Perceived as a leader in innovation cars a year.
and environmental awareness and
concern. 2. It is produced in Japan.
3. Early entrant into the market with 3. Honda is currently charging a
this technology. higher price than the regular
Civic, and they currently lose
4. Unique features
money on each one they sell.
1. Gasoline-electric technology
which allows you to travel 4. A lack of information and
up to 650 miles on one tank knowledge about its
of gas. performance and reliability.
5. Assimilation of the Hybrid with an
already popular model, the Honda
Civic.
OPPORTUNITIES THREATS
1. Go after a larger market with 1. Competition
promotions of the Hybrid to the 2. The failure of Honda’s future
general automobile consumer. plans to introduce the fuel cell car.
2. Increase overall production If the fuel cell car fails, and other
competitors have already gained
3. Make contracts with the U.S. market share with their own
government to use these models of Hybrid cars, Honda will
vehicles. have no place in the market with
an innovative and advanced
4. Install the Hybrid technology automobile anymore because of
into their limited production

5. Other Honda models. 3. of the Honda Hybrid.

Implementation Control
Marketing Challenges and implying solutions Advertising Finance Public
Relations The social media accounts generated 171,200 impressions.
The posters and banner created 121,000 impressions. T-shirt generated
38,000 impressions. Total: 330,200 impressions.
Increase awareness of the Honda Civic 2013 Sedan by 10% of the
population.
Emphasize attributes and benefits of the Honda Civic 2013 Sedan to our
target audience through creative pieces and non-traditional tactics.
Assemble a cost effective and efficient media mix to reach the target
market. Advertising Strategy Age of Respondents
Justification and
conclusion
Toyota's segmentation and target market are based upon the philosophy it
believes and that is, "Right Car in the Right Place" and also for the right
person. Toyota using, not only Demographic Segmentation also on
Psychographic Segmentation, for targeting its markets. For example, Toyota
PRIUS has segmented almost all the countries of the globe to make its
market over there. While doing this, Toyota has also identified its mainly
focused markets, for example US, Canada, EU, Australia, China, Indonesia,
etc. However, US is one of the major markets of Toyota where it has up to
30% of its total consumers. In the US, it has targeted its markets. Toyota has
targeted from Economy class to lower class. Toyota has also developed
specific car for middle class people and for those who love luxury cars like
the Lexus. And the Prius for the environmentally sensitive people. In fact, the
marketing strategy, market segmentation, market targeting, and market
positioning of Toyota cars is based on the "care" of its users and it can be
clearly seen in its variety of offers and product attributes
While, Honda is at the cutting edge of car design.
The Thai R&D facility turns out over three million cars a year, and it will
promote technology transfer and skills development, and feature
product planning, styling research and engineering development.
Marketing Objectives
I. Increase market share to 25% in the next 24 months.
II. Sell 15,000 units yearly to achieve 48% sales growth.
III. Raise brand awareness by renting work transport units to
organizations that employ the handicapped(Honda freed).
IV. And introduce eco-friendly and customer cars creating a
long lasting relationship with its customers.
 Hence, both HONDA and TOYOTA have some tough and
spectacular marketing plans and doesn't take them light
but due to mentioned reasons in the assignment we
strongly feel that HONDA has surpassed TOYOTA in
marketing plan criteria.