Running Head: Marketing Plan: 2013 Toyota Corolla

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Marketing Plan: 2013 Toyota Corolla Sabrina Mergenthaler Colorado Technical University Online *Authors note- This assignment contains portions that have been previously submitted throughout this course.

Running Head: Marketing Plan: 2013 Toyota Corolla Table of Contents EXECUTIVE SUMMARY ..pg 3 SITUATION ANALYSISpg 7 Industry Analysis Competitive Analysis SWOT Analysis Consumer Analysis OBJECTIVES...pg 12 Corporate Objectives Marketing Objectives MARKETING STRATEGYpg 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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Running Head: Marketing Plan: 2013 Toyota Corolla Executive Summary

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

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opportunities in frequencyor 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 planor the course of promotional action that will deliver a consistent message across a variety of channels for the Corollaare 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 Corollaboredom (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 Corollas 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 thatparents 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).

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Not only do we create a new audience through our plan, but we focus more on that consumer through the four csor 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 cs approach versus a traditional four ps approachwhich unlike the cs approach, focuses on product, placement, price, and promotion as it relates to the companywe 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 firms 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, its 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 releasesboth good and badnews stories covering Toyotas personal corporate responsibilities, and everything that contributes to frequency. Frequency is simply how often our message is put before our segment (Arens,

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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 campaignwhich grabs our audience from every venue they wish to be reached throughit is equally necessary to consider the budget for Toyotas end. Depending on our choice of magazines, billboard sizes, prime time spots, and so many more detailsthe 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 moments 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

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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, Toyotas 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 wellas 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 culturewhich identified social status and hierarchy based on material possessionsto 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

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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 Corollas 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

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a significant role in our positioning strategyor how we market the Corolla to our specific audiencepaying 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 adultscollege-bound, college-graduates, the working

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classand 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, Toyotas personal corporate social responsibility policy is a sure win-over with the segment which pays close attention to the extracurricular 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 instanceemail 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 generationsthe 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 Toyotas Overall Mission Toyotas 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 companys vision of being the most successful and respected car company in America (Toyotas Mission, n.d.). With these values in mind, the marketing plan of the Corolla reflects an evaluated approach of Toyotas 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 vehicles 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 companys 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 Toyotas 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 ps approach; we use the alternative marketing mix, which puts focus on the four cs: consumer, communication, cost, and convenience (Winer, 2004). We know our consumers and what they want. Without simply modifying the Corollas features, we can address qualitative goals, such as repair of company reputation and reinvention of image, through marketing the vehicles 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

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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 reachthat 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 frequencyor 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 strategiesor 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 reachor direct influence on our target marketby 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 messageits new, againthrough 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 Facebookand other similar sitesin 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 messageits new, againcombined 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, Toyotas 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 researchincluding a variety of techniques to systematically gather, analyze, and interpret details on marketplace conditions to make effective marketing

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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 Toyotas 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 relationswhich 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 Toyotas governing behaviors in environmental friendliness; social project participation; and employee relationsthe three aspects of an effective CSR plan (Alsem & Wittink, 2013). Toyotas 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 companys 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.

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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 peoplesuch as local churches, and childrens 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 messageits new, againthrough 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 meetsuburbanized 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 cs (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 Corollawith features that satisfy their needs in safety, reliability, and style at

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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 servicesuch as child centers, hassle-free sales, and on-site educational and discount opportunities for parents and their new driverand care after purchasesuch 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 Corollas 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 emailswe embrace our modern market with text messages and notifications sent directly to the Corollas console. As the future consumes this new audience, the Corollas 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).

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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 codeor shortened phone numbers that are more easily read and remembered (Vollmer, 2008). Image. These efforts attempt to position the Corolla by adjusting imageor 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 Nautical Blue Tropical Sea (Toyota, n.d.).

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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 buyersespecially 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 Corollaalready one of the best-equipped cars in its classoffers 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 featureswhich can be manipulated through steering wheel switches and voice controlmean 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.

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Best of all, Toyotas running a back-to-school New Years promotion. Now when you buy a new 2013 Corollayou get $1,000 towards the purchase of another. Theres no reason why everyone in the family cant 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 4cs approach, we are introducing a channel management strategyor 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 (rememberany 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 4cs, our strategy employs using a variety of tactics to deliver a fun, bonding, and memorable first-car-buying experience, throughout the decisionmaking 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

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a great productthat delivers safety, reliability, and comfort all in a conveniently priced packagethis 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 driversparents and teensas they make their first car purchase together. Based on our researchthese 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 childsafety, reliability, and price. As a first car, it also offers many of the features young drivers are looking for in a vehiclestyle, 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 programssuch 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 partnershipswhereby consumers can get special discounts for purchasing a Corolla or taking any of the safe-driving courses offered at our dealerships; And, follow-up communicationssuch 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

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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 Toyotas promise to provide: high-quality products and the best experience. With our messageits new, againreminding 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 Toyotas 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 freeeverything 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 its 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).

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Considering the immense size and value of this campaignwhich grabs our audience from every venue they wish to be reached throughit is equally necessary to consider the budget for Toyotas end. Depending on our choice of magazines, billboard sizes, prime time spots, and so many more detailsthe 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 moments 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 campaigns 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 sites, Toyota website, Corolla Website) $65,000 $5,000 $150,000 $5,000 $100,000

January February March April May June July

Print (Magazine/News Paper/ TV/Radio PressRelease/Billboard $250,000 $150,000 $25,000 $25,000 $50,000 350,000 $50,000 $100,000 $20,000

Social Media (Facebook, Twitter, YouTube) $175,000

Other (Events/ Tradeshows) $35,000/yr

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August 200,000 September October November 400,000 December

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$10,000 $75,000 $10,000

$5,000 $5,000

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 were 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 tasksuch as reporting to a website, mentioning a promotional code, or completing a survey that enables us to know what lead them to us

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(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 todays fastpaced 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 Corollas features, we can address qualitative goals, such as repair of company reputation and reinvention of image, through marketing the vehicles 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 ps approach; we use the alternative marketing mix, which puts focus on the four cs: consumer, communication, cost, and convenience (Winer, 2004). Through defining the vehicles 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) Toyotas 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

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(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 Corollas 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 References

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Running Head: Marketing Plan: 2013 Toyota Corolla McCrimmon, M. (2008). What Is Competitive Advantage? Suite101. Retrieved from http://suite101.com/article/what-is-competitive-advantage-a59991

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McGee, M. (2012). Nielsen: Facebook Users Spending 30 Minutes Less There Now Than 6 Months Ago. Marketing Land. Retrieved from http://marketingland.com/nielsenfacebook-users-spending-30-minutes-less-there-now-than-6-months-ago-26246 McKenna, R. (1991). Marketing Is Everything. Harvard Business Review. Retrieved from http://hbr.org/1991/01/marketing-is-everything/ar/1 Mukai, A., Horie, M., & Hagiwara, Y. (2012, August). Toyota Raises Sales Forecast, May Extend Lead Over GM, VW. Bloomberg Businessweek. Retrieved from http://www.businessweek.com/news/2012-08-03/toyota-profit-beats-estimates-aftersales-in-u-dot-s-dot-japan-surge Nishimoto, A. (2012, August). What Does the Next-Gen Toyota Corolla Need to Succeed? Motor Trend. Retrieved from http://wot.motortrend.com/mt-poll-what-does-the-next-gentoyota-corolla-need-to-succeed-241753.html#axzz2CuhDgUh0 Ohnsman, A. (2012, October). Toyota Expects New Models to Extend Sales Rebound in 2013. Bloomsberg Businessweek. Retrieved from http://www.businessweek.com/news/2012-1031/toyota-expects-new-models-to-extend-sales-rebound-in-2013 Olenski, S. (2012). Direct Mail: Alive And Kicking. Forbes. Retrieved from http://www.forbes.com/sites/marketshare/2012/03/11/direct-mail-alive-and-kicking/ Piermatteo, L. (2012). Live Chat. Applied Marketing Management. Colorado Technical University.

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Radicati, S. P. (2012). Email Statistics Report 2009-2013. Palo Alto: The Radicati Group, Inc. Retrieved from http://www.radicati.com/wp/wp-content/uploads/2009/05/email-statsreport-exec-summary.pdf Sirgy, M. & Rahtz, D. (2007). Strategic Marketing Communications: A Systems Approach to IMC. Mason, OH: Thompson. SWOT Analysis (2). (n.d.). M.U.S.E., Colorado Technical University. Retrieved from https://campus.ctuonline.edu/courses/MKT380/p2/hub1/12228.pdf SWOT Analysis. (n.d.). BusinessBalls.com. Retrieved from http://www.businessballs.com/swotanalysisfreetemplate.htm Television Bureau of Advertising, Inc. (2011). TV Basics. TVB. Retrieved from http://www.tvb.org/media/file/TV_Basics.pdf Toyota's CSR Concepts. (2012). Toyota. Retrieved from http://www.toyotaglobal.com/sustainability/csr_initiatives/csr_concepts/policy.html Toyota's Financials. (2012). Toyota. Retrieved from http://www.toyota.com/about/our_business/sales/index.html TrueTrends. (2012). TrueCar-Latest Automotive Trends. Retrieved from http://www.truecar.com/static/references/TrueTrends_November_2012.pdf Tuttle, B. (2012, September). Taking Down Toyota: Automakers Aim to Unseat Corolla as Worlds Top-Selling Car. Time: Business & Money. Retrieved from http://business.time.com/2012/09/06/taking-down-toyota-automakers-aim-to-unseatcorolla-as-worlds-top-selling-car/ Vollmer, C. (2008). Always on : Advertising, Marketing and Media in an Era of Consumer Control. New York, New York: McGraw-Hill.

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What is Channel Management Anyway? (n.d.). Go-To-Market Strategies. Retrieved from http://www.gtms-inc.com/What-is-Channel-Management-Anyway_ep_88.html Winer, R. S. (2004). Marketing Management. Upper Saddle River, NY: Pearson Prentice Hall.