Advertising Period:
First of May 2003—end of April 2004
Market Description:
The light-vehicle industry is seeing a steady decline in its automotive sales. The market expected to see a 4 percent decrease in their 2001-2002 sales due to intense competition among the automobile industry.
The most intense competitors include the Mitsubishi Lancer, the Pontiac Vibe and the Saturn Vue. Despite heavy competition and decreased sales, Toyota has maintained a fourth place finish among automotive company industry ranks.
Product Description:
The Toyota Matrix is an innovative model of sports utility vehicle. It is a hybrid combination of your average car, utility vehicle and sports wagon. The matrix is a practical, affordable vehicle with a trendy exterior that combines the style and handling of a sports car with the ruggedness of a sports utility vehicle.
The interior provides a cozy feel with easy access to navigational equipment. The Matrix is equipped with side-impact air bags, front and rear crumple zones, available anti-lock brakes and four-wheel drive. Upgraded models are available with DVD navigational systems and six-disc CD changers.
Other models of the Matrix include XR, XRS, and possible Special Edition 2004 MY.
Product Positioning:
The Toyota Matrix should be distinguished as a versatile automobile that is both practical and enjoyable. It fuses high performance and sporty style.
Competition:
More than 10 percent of all new vehicles sold annually are manufactured by Toyota. It is the fourth largest automaker in the US after GM, Ford Motor Co. and DaimlerChrysler AG. The crossover utility market has grown in popularity causing many automakers to produce similar vehicles to meet the trend. Some of the Matrix’s largest competitors are the Volkswagen Jetta Wagon, the Ford Focus ZX5, the Pontiac Vibe, the Mazda Protege5, and the Subaru Impreza Outback Sport.
Seasonality:
There is a year-round demand for this product category, so there is no seasonality.
Geography:
Usage is strong throughout the United States.
Purchase Patterns:
An automobile is a high-involvement product and purchasing from this category requires an educated buyer. The decision is greatly influenced by brand loyalty.
Interest in the Matrix is influenced by the buyers’ fast-paced lifestyle. These consumers are not afraid to spend money on what they want, and they expect a quality investment in return.
Usage Patterns:
The Matrix is the vehicle for younger energetic consumers who like to try new things. They want an affordably priced vehicle that does not compromise style, versatility or performance.
Pricing:
The standard Toyota Matrix 2WD Manual is priced at $15,155. The Matrix’s price is designed to be more affordable for younger consumers who have recently graduated from college and are now entering the work force. Lower cost promotes greater sales.
Matrix Standard 2WD Manual $15,155
Matrix Standard 2WD Automatic $15,955
Matrix Standard 4WD Automatic $17,600
Matrix XR 2WD Manual $16,665
Matrix XR 2WD Automatic $17,465
Matrix XR 4WD Automatic $18,930
Matrix XRS 2WD 6-speed Manual $19,235
Distribution:
The Matrix is available at any of Toyota’s 1,200 independent franchise dealers. Toyota cars are available through 10 regional sales offices and two private distributors sales offices. Circulation is worldwide.
Promotions:
Generate
interest in the Matrix on college campuses.
Inform consumers about the special financing program available to
college graduates.
Marketing Objective/Strategy:
Increase product awareness by 5 percent among potential buyers who are between 20-30 years old.
Creative Message/Tone:
The Toyota Matrix is a sporty, new CUV that provides consumers with versatility at an affordable price. It will offer a positive, upbeat and energetic message that appeals to youthful consumers.