Toyota Motor Corporation

Integrated Marketing Campaign

Shalini Verma Public Relations Management 01 Spring 2012

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Toyota Motor Corporation: Moving Forward

TOYOTA
Description of Organization
Toyota Motor Corporation (NYSE:TM), popularly known as Toyota, is a multinational motor engineering and manufacturing company under one of the largest conglomerates in the world, Toyota Group. The company was founded in Japan in 1937, by Kiichiro Toyoda and later expanded to America in 1957. They have later established their presence worldwide through car manufacturing and production (www.toyota.com). Toyota is known for being one of the worlds largest automobile manufacturers by production, and employs over 317,734 people worldwide. The company manufactures a wide range of automobiles catering to all preferences such as SUVs, coupes, vans, hybrids, trucks, and sedans. Toyota also has two other divisions in order to diversify consumer outreach, the Scion, which targets the Generation Y and the Lexus, a more luxury-type car. Toyota is also a leader in environmental awareness through their hybrid line, and the United States EPA has awarded Toyota Motors with an ENERGY STAR Sustained Excellence Award in 2007, 2008, and 2009.

Statement of Situation
During the year 2009, Toyota Motor Corporation met with a serious issue regarding the accelerator pedal being entrapped within poorly fit floor mats, mainly within their Camry and Corolla models in the United States. In addition, there were many complaints being issued about uncontrollable increased acceleration that did not relate to the poor placement of floor mats, which caused a number of crashes around the United States. Through investigation, it was concluded that the accelerator pedals sticking, causing the driver to lose control over the speed. The issue was also found in some Lexus models, where a fatal crash had occurred because of irregular measurements of the floor mat. The company reported to have recalled a total of around 5.2 million vehicles due to pedal entrapment, and an additional 2.3 million vehicles due to the sticking accelerator pedal problem. Because of this, the company experienced a significant sales decline of $450k within one year. This great loss in sales has caused much harm to high- level executives down to floor salespeople. Also, consumer interest in purchasing Toyota-manufactured cars has declined, and is in desperate need to rebuild a positive and welcoming image.

Key Publics
Consumers The consumers are the most influential public, due to the fact that their demands directly influence sales and production. Consumers determine whether or not the product, in the case of Toyota, is something worth investing a

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great sum of money into. Their voice is heard by investors, the executives, salespeople, as well as other potential consumers and non-consumers. In terms of Toyotas product recall situation, the consumers are mainly located in the United States and are generally made up of middle to high-class individuals. Consumers are fairly simple to segment because they can be categorized into various different groups by age, race, and income in order to mark where their values lie. Consumers value a wide range of characteristics when it comes to purchasing a car which includes safety, affordability, quality and ease of use. In relation to the image revamping of Toyota, the consumers need to be provided with reasons to invest and trust the company once again. The most effective way to approach this public is through media advertising, generally television, billboards, magazine ads, and internet adverts. Employees Employees are fairly concerned about the financial situation and public image of the company because this directly affects their job status. If a crisis occurs, and it results in a financial loss such that in Toyota, the company may opt to lay off employees in order to make up for the production loss. Employees are already segmented into various departments which involve a hierarchy of positions ranging from floor salespeople to top-level executives. Lower-end employees are generally just focused on being able to sell Toyota cars and get promoted onto higher ranks, while corporate level employees are fairly concerned about the market value of the company itself. In order to highlight Toyotas positive image branding, the employees themselves need reasons to stay positive themselves. This way, their image reflects on the image of the company, thus creating an increase in overall sales. The company can reach out to employees through internal newsletters, constant email updates, financial platforms, and branding within the office itself. Suppliers The suppliers were directly involved in the product recall situation, considering they were in charge of the physical manufacturing and production of cars. There is a great deal of weight on their shoulders to rectify this problem, and develop ways to make sure the problem is avoided in the future. Suppliers consider production costs and budget restraints in order to create a vehicle that is safe, affordable, and appealing to Toyota themselves. This public can be segmented in terms of what they provide for the company, whether it is packaging, designing, delivering or assembling the vehicle. In order to communicate important messages about image reconstruction, the company can utilize external newsletters, news reports, and print media. Shareholders The shareholders drive the financial state of Toyota Motors; they own parts of the company and therefore should be fully aware and educated about the campaign objectives and procedure. Their ownership is due to investment, which funds the company so they play a significant role in the financial aspect of Toyota. Also, Toyota has 3,447,997,492 shares outstanding as of 2010. Since last year, Toyota has experienced 112.37% earnings growth. This public can be segmented by the amount of shares they currently own, and in order to communicate to shareholders, Toyota can use financial reports and broadcast/print media.

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Industry/Financial Analysts Industry and financial analysts are in charge of creating a public opinion which influences the amount of investment in Toyota. They are generally the first to report current events to the public and acquire press and news releases. People, in general, rely heavily on their opinions on the current situation of Toyota. Also, they are constantly analyzing trends in the market and can be the determining factor of whether or not a stock price will increase or decrease. It is important to send a message of assurance that Toyota will have a positive increase in stock price, in order to gain more investors using resources like financial reports and broadcast media. Competitors Competitors are highly influential key publics who constantly focus their attention on Toyota in terms of what new innovations they are making, and how can they beat Toyotas role in the industry. Some major competitors of Toyota include Ford, Honda, and General Motors. The easiest way to reach out to them and show Toyotas status in the industry is through the release of financial reports, and broadcast/print media. Press releases are constantly being monitored by competitors, as well as advertising and marketing of products. Activist Groups Activist groups define the image of Toyota. They are especially interested in Toyotas incorporation of environmental sustainability as well as how well they assure safety in their products. They also issue awards to companies which increase brand recognition and consumers will feel safer about purchasing products. Current the biggest activist group involved with Toyota are the environmentalists, because Toyota is such a great leader in environmental safety through their Hybrid line. Reaching out to Activist groups is generally the same as consumers, with the addition of financial reports like the sustainability report. Government The government is important in the sense that they are constantly monitoring Toyotas compliance with federal-set regulations and laws. There are particular standards when designing vehicles which must be met. If these standards are not up to par, Toyota must compensate and make up for the losses incurred due to their mistakes, which is what happened when they were forced to recall 5.2 million cars. The government plays a large part of Toyotas finances as well due to the fact that it is a public company. During the 2009 product recall crisis, the government issued an emergency loan of around $3 billion to cover expenses and compensation. Generally, the government can be reached through financial reports, print media and other legal documents.

Integrated Message Platform

Emphasizing safety and comfort, Toyota launches their new and improved motor vehicle line, moving America forward. o The Toyota Corolla and Camry have been redesigned to avoid any future conflicts, accidents and ensure safety through extra precautionary measures taken into consideration during redesign. o Toyota Motor Corporation have sold over 7.2 million cars by the end of the 2010 fiscal year

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o Lexus and Scion are also implementing modern techniques into their products which cater to specific individuals based on particular characteristics. Toyota, along with Lexus and Scion brands, continues to bring high-quality products at affordable prices to cater to the current US economy. o North America accounts for 29% of Toyotas total sales o Toyota is investing more than $1 million an hour in areas such as vehicle safety, quality and sustainability. o In 2010, Toyota employed 317,734 people worldwide, and creates more jobs everyday through corporate positions as well as general sales managers and factory workers centered in North America. As leaders in environmental stability, Toyota continues to improve their products within the vehicle industry through the popular Hybrid line. o Toyota Motors offers 7 hybrid vehicles, three for Toyota and four for Lexus. Toyota Hybrids include: Camry, Highlander, Prius (Plug-In, and V) Lexus Hybrids include: CT, HS, RX, GS, LS o Toyota has sold nearly 75% of all hybrid cars in the US alone. o 2010 Prius uses parts which promote environmental sustainability through less emission of CO 2 into the air. o Strive to develop and establish technologies which allow the economy and environment to coexist, catering to the needs of consumers as well as activists and the environment itself.

Key Public Relations Strategies

Create a new image of Toyota Motors Corporation that highlights new innovations in safety and design. Spread awareness of the importance of environmental sustainability in order to restore Toyotas status as a leader in environmental awareness. Establish a sense of trust between Toyota and its key publics by redefining the companys objectives and standards of quality.

Strategic Public Relations Objectives (Measures of Success)

Increase brand perception recall by 45% through print and broadcast media as well as online presence while emphasizing the importance of safety through adjusted designs in Toyota vehicles. Achieve 40% awareness of Toyotas standpoint in environmental sustainability in all key publics. Establish 55% increase in awareness of Toyotas key publics about the new and improved objectives and standards of quality.

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Brainstorming Grid
Public Consumers Value Safety Affordable Price High Quality Ease of Use Message Purchasing Toyota cars is safe and reliable Media Television Print media Mailings Reasonable pricing in relation to the Email current state of economy and companys Website financial situation Conventions Positive effects of campaign will bring in Newsletters revenue, and provide for more jobs Emails More salary increases and bonuses due to Meetings good financial situation of Toyota Internal brand placement Evaluations and annual status overview Broadcast media High quality products at affordable Newsletters prices which will attract more customers Meetings and increase revenue. Emails Financial Reports Print media Broadcast media Company growth and increase in stock Email value Newspaper articles External newsletters High revenue means higher dividend Financial reports on stock yield market status (Annual/Quarterly) Print media Broadcast media Toyota campaign will increase stock Stock Market prices and competitiveness Financial reports (Annually/Quarterly) Print media Broadcast media Toyota will continue to innovate designs Annual reports in order to stay at the top of competition Print media Articles Create unique products that stand out Website/Blog updates amongst other cars with similar styles Broadcast media Toyota creates vehicles which comply Newsletters with environmental standards and are Specialized print media aware of nature Print media Toyota values the safety and lives of the customer Products will be consumer-friendly and according to government guidelines Campaign will increase trust between citizens and the company

Employees

Job Retention Salary increase Recognition Sales increase Job security

Suppliers

High Quality Price Innovation

Shareholders

Stock Price

Industry and Financial Analysts

Company growth within industry Stock value

Competitors

Improvements in design

Activist Groups

Environmental concerns Humanitarian efforts

Government

Regulations Safety

Annual/Quarterly reports Print media Legal documents

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Key Marketing Strategies

To increase sales revenue by selling more product units in 2013 than in previous years. To increase market share in the automobile industry through the established Toyota, Lexus and Scion brand. Gain share-of-mind in key publics through spontaneous brand identity. To gain an increase in both prompted and spontaneous brand identity in key publics.

Key Marketing Objectives

To increase sales revenue by 40% through promoting safety and reliability in Toyotas automobiles. Increase market share by 45% in automobile industry to attract new customers and bring back old customers prior to the crisis. Increase share-of mind by 80% for both prompted and spontaneous brand identity in three major key publics.

Key Advertising Strategies

To generate leads through social, print and digital media To create an award-winning creative advertising campaign. To achieve high rates of recall.

Advertising Objectives (Measures of Success)

Generate 800 website hits per $1,000 spent. Win a minimum of three Advertising Awards including: ADDY Awards, NYF International Awards, and IAC Internet Award. Achieve reader recall scores of 70% per each 1,000 impressions.

Integrated Tactical Plan

Advertising: Advertising reaches out to all of our key publics with very effective strategies. Toyota will implement a plan which includes: a 60-second television commercial airing twice a month during primetime for one year, two full-page trade publications every month, and one full-page ad in a major daily publication each month. Because this requires the most funding, it is important to combine creativity and strong research so to create an effective and appealing ad campaign. Ultimately, advertising will give Toyota the greatest exposure and impact various key publics including potential customers. Brochures: Informational brochures will be sent out to current customers and those have leased or previously purchased a Toyota automobile. The brochures will be sent out on a quarterly basis so to give seasonal updates to our loyal customers. These brochures will include information about our new innovations and exclusive preview of what to expect during the year and in the future of Toyota. Events: Toyota will host various events across the year including Customer Appreciation days, which are ultimately open to all key publics involved with the

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company. These days would occur at least four times a year, and invitations are sent out through the quarterly brochure as well as personal electronic invites to other key publics. The events will help boost sales by giving good exposure for Toyotas products as well as put the company in a positive light. Some of the perks of attending one of the events include discounts on major cars, previews of the line for 2013, freebies, and tune-up package deals sponsored by leading brand affiliates. In addition, by attending the event, attendees can renew their leases or get a free oil change in their cars, with a valid car purchase between 2006-present days. This shows that Toyota cares about those impacted by the product recalls, and how they will go the extra mile to ensure safety in those cars. Feature Stories: Every month a Customer Appreciation day occurs, Toyota will put out a feature story in a major newspaper. The story will focus on topics such as environmental awareness and customer appreciation days. This will keep the brand alive and put it in a good light for customers to see how much Toyota cares about good will. Newsletters: Internal and external newsletters create a bond between the top-level executives involved at Toyota with lower-level employees and those interested in learning more about the organization. External newsletters will cover campaign progress as well as news about important stakeholders. Internal newsletters will cover more information about employees themselves such as awards for outstanding work, campaign progress and information on company events. These newsletters will be sent out biweekly. Pitch Letters: The pitch letters are important for creating brand value and will be issued during the course of the year as a significant part of redeveloping Toyotas image. By sending out a few throughout the year, it will slowly build up hype and attention for Toyotas re-vamped values. Press Conferences/PSAs: A press conference will be used towards the beginning of the year to address every key public, and held twice a year. This way Toyota can give frequent updates about the progress of the campaign. Also, PSAs are important for targeting activist groups and the government because they reach out to them the most. Here, we can discuss our Hybrid line as well as other green initiatives. Research: In order to effectively evaluate the success of the campaign, Toyota needs a qualified and dedicated research team. This will ultimately assist in the development of Toyota and further the progress towards our goals. Research and analysis of the market, our consumers needs, as well as the design of our products is essential as feedback for how well our program is doing. Websites: There are many social websites available to use for free, which can send out personal accounts from employees of our campaign progress and positive aspects. This also gives customers the opportunity to give their own feedback on our products. Also, the main Toyota website serves as an aggregate of information reaching thousands of site visitors each day, which gives more exposure.

Overall Timetable
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Combined Budget
In order to reestablish their well-recognized name in the automobile industry, Toyota Motor Corporation is prepared to spend $1,659,264 on the marketing, advertising, and public relations of the Integrated Marketing Campaign. Through the set budget, Toyota will prepare will act accordingly in order to attain their various goals and objectives starting January 2013 until the end of the year.

Tactic
Advertising

Agency Hours (at $200)

Outside Costs

Notes
Total: $1,500,000

Brochures

Events

Feature Stories Newsletters Pitch Letters Press Conferences/ PSAs

Research Websites

1 pg trade publications (24): $120,000 1 pg major daily (12): $300,000 60sec. TV primetime (24): $1,080,000 Production = 10% 20 hrs. $480 color/1K (50,000) = $24,000 40 hours Facility (on-site) = $0 Food and Beverage (4) = $20,000 A/V (2) = $4,000 10 Reprints: $288/1K (3) = $864 104 letters each year Production: $600/1K (10,000) = $6000 In-House In-House 38 hours Food & Beverage: $5K (4) = $20,000 A/V: $2K (4) = $8,000 In-house In-house 1 site that needs to be Development: $10K paid for (excludes (1) (other sites are free social networking free) = $10,000 sites) Maintenance: $2K/month (12) = $24,000

Total: $28,000

Total: $32,000

Total: $2,864 Total: $26,800 Total: $0 Total: $35,600

Total: $0 Total: $34,000

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Summary of Research
Title 1. Toyota recalls 3.8 million vehicles 2. Toyota: Research & Development 3. Toyota Today 4. Investors: Information for Shareholders and Investors 5. Daily Finance: Toyota 6. Toyota Hybrids Source Msnbc.com Toyota.com Toyoland.com Toyota-global.com DailyFinance.com Toyota.com

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Timetable
Jan Advertising Brochures Events Feature Stories Newsletters Pitch Letters Press Conferences/ PSAs Research Websites
Update ($2k) Update ($2k) Research (No Cost) Update ($2k) Update ($2k) Update ($2k) Newsletter Distributed (No Cost) Pitch letter sent (No Cost) Newsletter Distributed (No Cost) TV Ad/Trade Pub/Daily ($125k) Quarterly ($6k)

Feb
TV Ad/Trade Pub/Daily ($125k)

March
TV Ad/Trade Pub/Daily ($125k)

April
TV Ad/Trade Pub/Daily ($125k) Quarterly ($6k)

May
TV Ad/Trade Pub/Daily ($125k)

June
TV Ad/Trade Pub/Daily ($125k)

July
TV Ad/Trade Pub/Daily ($125k) Quarterly ($6k)

Aug
TV Ad/Trade Pub/Daily ($125k)

Sept
TV Ad/Trade Pub/Daily ($125k)

Oct
TV Ad/Trade Pub/Daily ($125k) Quarterly ($6k)

Nov
TV Ad/Trade Pub/Daily ($125k)

Dec
TV Ad/Trade Pub/Daily ($125k)

Customer App Day ($8k) Newspaper Feature ($954.67) Newsletter Distributed (No Cost)

Newsletter Distributed (No Cost) Pitch letter sent (No Cost)

Newsletter Distributed (No Cost)

Customer App Day ($8k) Newspaper Feature ($954.67) Newsletter Distributed (No Cost)

Newsletter Distributed (No Cost) Pitch letter sent (No Cost)

Newsletter Distributed (No Cost)

Customer App Day ($8k) Newspaper Feature ($954.67) Newsletter Distributed (No Cost)

Customer App Day ($8k)

Newsletter Distributed (No Cost) Pitch letter sent (No Cost)

Newsletter Distributed (No Cost)

Newsletter Distributed (No Cost) Pitch letter sent (No Cost) Conference Held ($17k)

Conference Held ($17k) Research (No Cost) Update ($2k) Research (No Cost) Update ($2k)

Update ($2k)

Update ($2k)

Update ($2k)

Update ($2k)

Research (No Cost) Update ($2k)

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