Group Assignment: HI5004 Marketing Plan - Toyota RAV4 Pricing Strategy

This report analyzes the marketing plan for the Toyota RAV4, specifically focusing on pricing decisions within the competitive Australian SUV market. The analysis highlights the importance of premium pricing and geographical pricing strategies to establish a strong brand position. The report examines the competitive landscape, identifying key rivals like Mazda CX5 and Honda CRV, and emphasizes the role of environmental scanning through Porter's Five Forces and SWOT analysis. The study suggests that the RAV4 can maintain a competitive advantage by leveraging its hybrid features and focusing on early adopters through social media marketing, aiming to persuade consumers and increase profitability. The report also touches upon the impact of currency fluctuations and inflation on pricing decisions, concluding that effective brand positioning is crucial for sales growth.

Marketing Plan
Anil

Pricing Decisions
The pricing decision is considered as the one of the marketing strategy of company
to influence the relationships with the customers and highly affects the profitability of
business. It involves simplex and complex pricing decisions. The complex pricing
decisions is used for the above mentioned product under which the price is set on
the basis of originality of product. It helps in describing the value of the product and
allows negotiating with the customers (Hinterhuber, 2015).
It is analysed that the Toyota will focus upon setting the premium pricing for its
product. It will be higher than the competitors in SUV due to its unique features. The
product will hold the premium positioning through its environment friendly and hybrid
version. Its sharp edge body and great mileage helps the company to charge
premium price for its product (Hinterhuber, 2015).
It will also make the pricing decision based upon geographical pricing. The company
sets the price based upon the transportation cost involved and the cost of
manufacturing the product. The pricing decision will also be influenced by changes in
the currency and inflation (Hinterhuber, 2015).
Adoption of the above mentioned strategy will allow the company to sustain its
competitive advantage over its competitors and will aid in increasing the profitability
of the business. It will help in persuading the buying actions of consumers and shift
the customer base towards this product (Kotler et al, 2015).
Conclusion
From the above discussion it is crucial to note that brand positioning shows the main
role in increasing the sales of the business. It is analysed that Toyota RAV4 holds
the image of best hybrid version in the Australian market and faces the competition
from SUV’s and Toyota Hi-Lux and Corolla. The company will focus on the early
adopters and will use social media marketing as the main source for creating
awareness about the product. It is analysed from the above that the competitors
creates niche in market as premium brand that deliver luxurious experience to its
customers from advance features and comfort. The pricing decisions for the Toyota
RAV4 will be based upon premium pricing and geographical pricing to deliver value
to the customers.