Marketing Planning - Assignment PDF

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MARKETING PLAN
Student’s Name
Professor’s Name
Institution
Course Name
City
Date

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Contents
Introduction and objectives…………………………………………………….….3
Current market and company situational analysis………………………………...4
Consumer behaviour……………………………………………………………....4
PEST analysis……………………………………………………………..…….…7
Market Segmentation……………………………………………………….……..7
Marketing Plan Objectives………………………………………………………...8
Recommendations……………………………………………………………….…9
Marketing mix strategy…………………………………………………………...10
Strategic marketing planning tools ……………………………………………….11
Evaluation and Control……………………………………………………………12
Budget…………………………………………………………………………….13
List of Reference…………………………………………………………………14
Appendix………………………………………………………………………….16

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Executive Summary
The purpose of this report is to provide a marketing plan for Toyota Prius. The head office of the
organization is located in the United Kingdom where all decisions are made regarding the
organization. The report begins with an introduction to the Toyota Company, and its internal and
external environment has also been analysed. Competition variables affecting the organization
have also been highlighted and explained, followed by the corporate and marketing objectives of
the organization. The focus of the report is on the marketing environment and strategies, as well
as Toyota Prius as the primary product. Finally, the report concludes by explaining the distinct
budgeting requirements and the recommendations which ought to be embraced to realize success
in the competitive market.

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Introduction and objectives
Toyota is ranked as the third largest manufacturer, when it comes to automobiles. This is
the largest Japanese organization that produced more than 4.5 million vehicles annually. The
organization manufactures vehicles of all preferences and sizes, ranging from sports cars,
pickups, and trucks (Belz & Peattie, 2012). Toyota Prius boasts of being the first to take up the
production of the gasoline-electric hybrid car, which involved joining two types of power
sources. Toyota Prius made use of the combination of the electric motor and the petrol engine.
The car has for some time, undergone certain modifications according to the driving conditions
and consumer preferences. Toyota Prius is focused on entering international market platforms
such as the Indian market, hence is aimed at attracting upper middle-income earners, based on
the business standard. The primary market for the vehicle includes doctors, top executives and
industrialists, between the age of 35 and 50 years (Desanctis & Monge, 2009). India, which is
used as an example to represent other international market platforms, will serve as an attractive
market for the Toyota Prius owing to numerous factors. This includes; the inclination of the
different global populations towards eco-friendly materials, and the increased propensity of
consumers to consume commodities from the automobile sector. Based on such facts, the
primary purpose of this paper is to come up with a well-designed marketing plan for Toyota
Prius.
Current market and company situational analysis
Competition: Porter’s Five Model
The porters five model represents five forces which affect competition in the automotive
industry, with the specific focus being on the Toyota Prius.
1. The threat of new entrants

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The automotive industry has a set of industry entry barriers (Desanctis & Monge, 2009).
Examples include substantial capital requirements and excessive distribution channels. There are
also extensive economies of scale which most companies enjoy, especially the current
automobile brands which make it extremely difficult for the upcoming participants. In the case of
Toyota to be precise, the organization has a massive market presence, as well as the global scope
of operations (Desanctis & Monge, 2009). The organization also benefits from the economies of
scale, and reduced costs of production. The vehicles are also sold at lower prices, which make it
remain highly competitive. Moreover, when it comes to product differentiation, manufacturers
are expected to retaliate. Regulatory barriers also reduce industry entry by other firms.
2. Bargaining power of suppliers
The bargaining power of the suppliers in the vehicle manufacturing industry is insignificant. This
is brought about by the fact that suppliers in various part of the world are numerous. Supplier
switching cost varies and is affected by the nature of commodity delivered, and the type of the
supplier the organization deals with. In the case of Toyota Prius, suppliers tend to be located very
close to the manufacturing units. The organization also relies a lot on lean manufacturing and
just in time supply chain systems in management (Dessein, 2012). This, in turn, makes supplying
units have greater bargaining power in the market.
3. Rivalry among existing firms in the industry
Toyota Prius faces a lot of competition in the automobile industry. The global marketplace is
highly competitive, and the brand competes with other industry giants such as the general
motors, the Daimler, the BMW Group and the Volkswagen among others. However, Toyota
Prius maintains an exemplary leadership position in the market in Oman, regarding sales and

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revenue levels. The organization has a significant market share in Oman, which is not likely to
change any time soon.
4. Threat of substitutes
The threat of substitutes in the industry operated by Toyota Company is moderate. There are
several substitutes for products manufactured by the organization, such as the Toyota Prius. This
includes the vehicles made by other brands, and the public means of transportation which might
as well be embraced by different market participants (Eisenberg et al. 2013). The switching costs
are also relatively low, and in some areas, such as the market in Oman, most individuals tend to
find it more convenient to make use of the substitute commodities. For the middle-income
earners and the lower middle class, the consumers end up preferring public transportation. With
this in mind, the organization has released models associated with low fuel consumption such as
the Toyota Prius, good for the environment, and smaller family cars which are regarded to be
more affordable in Oman (Enderwick, 2009). These factors are meant to counter the moderate
threat of substitutes in the market, but only to a little extent.
5. Bargaining power of consumers
The vehicle industry is characterized by very high consumer bargaining power. Consumers have
a lot of options, especially when it comes to the use of other commodities. The switching costs
are also minimal. The presence of competing commodities in the industry at similar or even
lower prices as compared to the Toyota Prius is also a contributing factor to the high bargaining
power of consumers (Greenberg & Baron, 2013). Every consumer is highly informed and has a
chance to make personal decisions on what to purchase in the market, hence find the most
suitable option for them. All these factors affect the buyers of the consumers in the market. The

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bargaining strength that the organization holds may only be technological and design innovation.
The entity and the commodity, Toyota Prius, have also acquired impressive levels of consumer
loyalty in the industry.
Consumer behaviour
The decision to purchase for the consumers in Oman is profoundly affected by a change in
lifestyle, economic concerns and the environmental concerns. Most of the consumers look
forward to the environmentally friendly commodities. Consumers also seek complete
information and comparisons to both internal and competitive brands in the market. Most
consumers research online, before making a purchase. Consumers are also keen to evaluate their
alternatives, based on the finances, availability, vehicle specifications and the emotional aspect.
Consumers make a choice based on the functional considerations and the reviews of other
consumers on the same commodity (Griffin, 2016). Finally, most consumers decide on where
and what to purchase, and whether they would recommend it to others.
PEST analysis
Political
Oman has a very peaceful political situation, and this makes it an extremely conducive platform
for business operations. The stability of the country makes it an ideal place for the Toyota
Company.
Economical
The economic situation in Oman is exemplary considering the presence of natural oil reserves
that generate more than $78 billion for the country (Grunig &Dozier, 2013). The population has
the best quality of life, and the buying power is significantly high.
Social

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The social situation in Oman is peaceful. Most of the citizens are of Islam origin, with most
expatriates residing in Oman for the sake of employment. Oman has ranked 45th among the most
peacekeeping countries.
Technological
Research and development have made it possible for increased evolution in technology in the
country (Koike & Toyota Motor Corp, 2012). This trend is beneficial to Toyota as an
organization, which thrives on technological development. The Toyota Company continues to
work with a mission to make the best available vehicles in the market, based on the technical
strength, experience and immense expertise.
Market Segmentation
Initially, most models focused on the preferred idea of the electric model. The generation of the
Toyota Prius has made the organisation shift its focus to the population above the age of 40. The
model developed implies comfort and design which is also considered to be prestigious
(Lungfield & Greenwood, 2010). The target market includes all consumers above the age of 40
years. This category is more focused on reducing the damage to the environment, and oil
dependency rates.
Marketing Plan Objectives
A. Increase the overall awareness of the Toyota Prius by more than 50% in the next three
years, while targeting new markets especially in developing economies.
B. Increase the general total sales of Toyota Prius by more than 40% by the end of the year
2018.

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C. Invest more substantially in hybrid positioning with the distinctive Hybrid synergy drive
(HSD), with the aim of projecting lower noise and negligible fuel consumption through
the brand of the organization, the Toyota Prius.
D. To start enhancing the positioning of Toyota Prius as an environmentally friendly
commodity and a family car.
Recommendations
Strong consumer responses are evident based on the performance of the Toyota Prius in the
market. Consumer acceptance level for the brand is hugely satisfactory, and this is a positive step
for the organization (Morgan & Liker, 2016). The high brand image, performance and the
technology used to focus on update appearance have made the Toyota Prius to be highly
appreciated in the market. To compete in the modern world, there is a need for the company to
enrich its position, and be more deliberate in its operations. This is bound to help more
consumers find their brands, and desired preferences in the market. Consumers evidently, don’t
doubt when making purchases of the Toyota Prius owing to the level of reassurance by the
marketing team. The reliability of the brand and availability needs to be focused on, and a more
visible image created through consistent market research (Morgan & Liker, 2016). Consumers in
Oman have a positive behaviour towards the purchase and use of the Toyota Prius.
Recommendations to further boost the brand include;
a) The reduction in import taxes for the Toyota cars, and more so the Toyota Prius.
b) Availability of the car parts needs to be high for consumer convenience.
c) The resale value should be increased.
d) Better advertisement and branding should be done (Terpstra, 2012).

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e) The market needs to convince the consumer further to buy other brands, as compared to
Toyota brands such as the Toyota Prius only.
Marketing mix strategy
1. Product
Toyota Prius has become a preferred model, especially in the automotive industry. The 2010
Toyota Prius has been manufactured in a way that the model gets an estimated mileage of 50
miles per gallon, with a capacity of 11.9 gallons (Morgan & Liker, 2016). Based on the estimate,
the car has a range of 590 miles which is convenient for most of its users. The Toyota Prius has
been masterfully redesigned, and the Toyota Prius is now more stylish as compared to its
predecessors. The organization has added accessories which have also changed the entire auto
industry such as the powered moon roof of the car. With all these new properties, the model has
helped boost sale in the organization to significant levels (Morgan & Liker, 2016). The target
market, in Oman, has also been reasonably satisfied with an environmentally friendly image,
economic model, comfortable and stylish product.
2. Price
The penetration pricing strategy would work significantly well for the organization, instead of
relying on the skim pricing strategy for the promotion of Toyota Prius. This is based on the fact
that the demand for most hybrid cars is highly elastic, and the price of cars bought is bound to
decline. With the strong balance sheet of Toyota as an organization, the organization can also
take up competition through competitive financing, and embrace lease rate throughout all its
channels of distribution in Oman alone (Morgan & Liker, 2016).

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3. Promotion
The Toyota Prius has for quite some time, been promoted in numerous ways. This has been done
through advertisements, personal selling and sales promotions. The Toyota Prius for instance, as
featured in dozens of commercials, movies and television shows. Hollywood stars have also been
spotted raving in the Toyota Prius which has since been an influence regarding the branding and
building a reputation and appeal to prospective consumers in Oman.
4. Place
Currently, Toyota has control of more than 16% of the automotive market in Oman. The
organization makes significant sales as compared to most of its competitors (Osterwalder &
Pigneur, 2010). Toyota Prius controls more than 75% of the market share in Oman, with
executives and high-income earners in the forefront of purchasing the model. Marketing, sales
and distribution in Oman have been significantly handled, and numerous consumers have
increased access to the brand.
Strategic marketing planning tools
Communication is the most critical factor in the marketing world. For most organizations,
strategic marketing cannot be a success, without the application of communication tools. As for
communicating the Toyota Prius to the Oman consumers, personal selling is the essential
marketing tool (Osterwalder & Pigneur, 2010). This strategy can be applied by the local car
dealers, as well as corporate dealers, that have extensive knowledge of the commodity and the
market. The target, in this case, will be the corporate companies and the fleet purchasing
segments in the market. Another marketing tool is the use of media, which is also a marketing
strategy. The internet plays a significant role in the modern economy, and ought not to be

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shunned. Direct mails should be sent especially to potential buyers and will enable buyers of the
Toyota Prius to have access to e-brochure and all related advertisements. Such tools should also
be complemented by television, public relations, and print advertisements to reach more buyers
in the automotive segment, which is highly competitive especially in the modern economy in the
global perspective (Roberts et al. 2014). These recommendations are bound to boost the
consumption of the Toyota Prius in Oman significantly. It will also make the market more
significant for the brand, which is an added advantage for the organization. Considering that
Toyota is already a leading brand, the goal is to make the position more constant. The
organization and the Toyota Prius marketing team, therefore, should formulate further
advertisements and more so, introduce partial benefits into the modern Oman market for
increased competition. The market is incredibly dynamic, hence the need to enhance the success
of the brand, through keeping pace with other car brands, and their acceptance level in the entire
industry.
Evaluation and Control
To maximize all relevant returns on the marketing plan, there is a need for the organization to put
in place controls, which are meant to monitor the progression of the plan. Various performance
indicators (KPIs), and control tools can be relied on in the case of the Toyota Prius.
Customer feedback
Toyota Company needs to extensively monitor all sorts of consumer feedback regarding the
Toyota Prius. This can be done through surveys and polls (Osterwalder & Pigneur, 2010). The
organization can reach out to consumers more directly, for instance through hosting polls on the
internet and requesting consumer feedback. Surveys can consequently, be done through
individual interviews and groups by phone or in person.

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Target sales
The sales from the Toyota Prius can be gauged by measuring the sold units of the commodity.
Point of sale surveys can be made to establish these levels, or through inventory systems in the
organization. For instance, if the target market consists of males aged 40-5o, the sales reports
should be focused on this specific category of consumers in Oman which is the market of focus.
Budget
Budgeting requirements will consider, printing expenses, travel costs involved in market
research, internal personnel costs at the organization and trade show expenses (Stone &
Grønhaug, 2013). These costs need to be extensively monitored in the organization, for the sole
purpose of minimizing spending and more so, maximization of profitability.
Figure 1
Marketing mix budget for the Toyota Prius in Oman
Product expenses $400000
Place expenses $300000
Promotion expenses $500000
Pricing expenses $200000

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List of Reference
Belz, F.M. and Peattie, K., 2012. Sustainability marketing: A global perspective. New Yrk: John
Wiley and sons
Desanctis, G. and Monge, P., 2009. Introduction to the special issue: Communication processes
for virtual organizations. Organization science, 10(6), pp.693-703.
Dessein, W., 2012. Authority and communication in organizations. The Review of Economic
Studies, 69(4), pp.811-838.
Eisenberg, E.M., Goodall, H.L. and Trethewey, A., 2013. Organizational communication:
Balancing creativity and constraint. New York: St. Martin's Press.
Enderwick, P., 2009. Large emerging markets (LEMs) and international strategy. International
Marketing Review, 26(1), pp.7-16.
Greenberg, J. and Baron, R.A., 2013. Behavior in organizations: Understanding and managing
the human side of work. Pearson College Division.
Griffin, E.M., 2016. A first look at communication theory. New York: McGraw-Hill Publishers.
Grunig, J.E. and Dozier, D.M., 2013. Excellent public relations and effective organizations: A
study of communication management in three countries. Routledge.
Koike, S., Toyota Motor Corp, 2012. Positional data utilizing inter-vehicle communication
method and traveling control apparatus. U.S. Patent 6,445,308.
Langfield‐Smith, K. and Greenwood, M.R., 2010. Developing Co‐operative Buyer–Supplier
Relationships: A Case Study of Toyota. Journal of Management Studies, 35(3), pp.331-353.
Morgan, J.M. and Liker, J.K., 2016. The Toyota product development system (Vol. 13533). New
York: Productivity Press.

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Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Roberts, K.H. and O'Reilly III, C.A., 2014. Failures in upward communication in organizations:
Three possible culprits. Academy of Management Journal, 17(2), pp.205-215.
Stone, R.N. and Grønhaug, K., 2013. Perceived risk: Further considerations for the marketing
discipline. European Journal of marketing, 27(3), pp.39-50.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.

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Appendix
Figure 1
Marketing mix budget for the Toyota Prius in Oman
Product expenses $400000
Place expenses $300000
Promotion expenses $500000
Pricing expenses $200000