Matrix Media Plan, Part I.
Morgan Iuliucci, Rebekah Norkus, Anna McLean, Tyler Ray (team leader)
In 2001, there were 441,143 small sport-utility vehicles (SUVs) sold in the United States. In the first half of 2002, there were already 552,826 vehicles of the same class sold (Toyota Case Study, Table 11). Based on this information, we can estimate that there will be approximately one million small SUVs sold in 2002.
The CUV (cross-over utility
vehicle) is emerging as the hottest trend in the automotive market. Manufacturers have listened to the young
consumer’s need for space, comfort and versatility. They have also heard their
desire for a sleek, stylish and sporty subcompact that is easy to maneuver and
affordable. Since this vehicle class
was just introduced, it is difficult to determine its place in the market as of
yet.
In the CUV category, the Matrix will emerge as one of the top brands thanks to its early release and its consumer-oriented attributes. The Matrix exceeds the mark for value, performance, style, size and compatibility.
The CUV category only has a short history. Four vehicles have emerged from this new class and are fiercely competing with one another for the top spot in the $20,000 price range. These include the Toyota Matrix, the Mazda Protégé 5, the Pontiac Vibe and the Ford Focus ZX5. Others, including one from Honda, are on the way. The late-comers will be situating themselves against the already well-established Matrix, which will help give Toyota the edge in the category.
Brand History
Manufacturers rolled out the 2003 Toyota Matrix in February of 2002. The brand is relatively new and is lacking a significant history. So far the Matrix is doing well in the market, having sold 31,579 vehicles as of July, 2002 (Toyota Case Study, Table 11). Toyota plans to sell 60,000-70,000 Matrix automobiles annually. However, awareness of the Matrix is still relatively low. The brand is only recognized by 29% of Sport Wagon intenders (Toyota Case Study, page 9.)
Product Positioning Statement
Product Description:
The Matrix offers the sporty styling and high-performance features of a compact sports car combined with the utility and functionality of a sport-utility vehicle or a station wagon.
The utility and the versatility of the Matrix set it apart from the competition. While it may look like a sports car, the Matrix comes ready to work. It features standard four-way adjustable front seats with a fold-down passenger seat, a rear seat that folds flat, cargo nets, a rear cargo track system with adjustable hooks, and hidden storage compartments below the floor. The Matrix also has more cargo capacity than its competitors. In addition, the matrix houses a multi-media platform with a variety of power outlets and a laptop computer table built into the back of the passenger seat.
The Matrix XR, the model this campaign will concentrate on, comes with added interior features. These include a 115-volt household-style outlet (for those who would like to plug in their laptop computer or other electronic goodies), two 12-volt DC power outlets, daytime running lights, and a heavy-duty defogger for the back window. The XR has added stylistic features. These include a three-spoke steering wheel and the availability of a power moon-roof and cruise control (www.toyota.com).
Product Positioning:
The Matrix combines affordability, sporty styling, and functionality that could previously only be found in larger, more expensive vehicles.
Young buyers often have busy lifestyles that include work, fun, friends and family. The cargo space and the flexible interior format offer endless logistical support for everything a young consumer might need, from hauling sports equipment to hauling the kids. But, the Matrix has the look and feel of a sports car.
So, Toyota has created a car where the right brain meets the left brain. The Matrix is positioned as a sports car with cargo space. It appeals to both the aesthetic and the logistical needs of young car buyers. Toyota has avoided giving the car a slogan and is instead concentrating on the car’s ability to meet as many different interpretations and demands as its drivers can throw at it. The brand has not been bound to one interpretation (Toyota Matrix Dealer Brochure).
Competition
Competing Brands in the Category
The primary competitors of the Toyota Matrix are the Mazda Protégé5, the Pontiac Vibe (built on the same platform as the Matrix) and the Ford Focus ZX5. These vehicles constitute the consumer’s consideration set.
The Protégé5 and the Focus ZX5 offer more options on their base models. They also allow consumers to add or delete options from specific packages, making the price and configurations more flexible. The Matrix and the Vibe, on the other hand, do not allow consumers to alter the packages in any way.
Cargo Space for the Matrix and its Competitors:
Competing Brands Market Share
The following market share data are based on the competing model for the small SUV category. The numbers are for 2002 and were complied from www.carmetrics.com.
Competitor’s Positioning (via perspective websites)
The slogan for the Mazda Protégé5 is the “Cutting edge of motion.” It positions itself as being innovative, sporty, versatile and fast.
The slogan for the Pontiac Vibe is “It’s an experience.” It positions itself as being spontaneous, urban, spacious, powerful and self-expressive.
The slogan for the Ford Focus ZX5 is “One steady ride.” It positions itself as being a dependable car that provides a smooth driving experience.
Seasonality
Sales by month fluctuate for the category, but the changes are not specifically measurable. The only month that shows a noticeable decrease in sales is January. Recent data show there has been a steady difference in sales during January since 1999 (Lexis-Nexis Statistical Universe). The combination of cold weather and economic strain from holiday expenses are possible contributing factors.
Geography
The Toyota Matrix campaign will be a national campaign in the United States. The Matrix is sold throughout the U.S.
Research has shown a trend that automobile sales are greater in warmer states. California, Texas and Florida sold the most automobiles in 2001 (Lexis-Nexis Statistical Universe).
Purchase Patterns
Consumer Behavior
The target market for the Matrix is young adults age 18 to 34. They fit into the “Experiencers” VALS personality type. They are described as action seekers who thrive on variety and risks. Two-thirds are single, and most are college educated. Though their income is below average, having fewer expenses leaves them with more disposable income. This target is often described as the “unreachable.” They tend to ignore advertising unless it helps them gain information they are already actively seeking. They are very market-savvy, technology-savvy consumers who often have low brand loyalty. They seek out and buy the product they feel will deliver the best value (www.SRI.com).
Purchase Involvement
Purchasing a new automobile is a very high-involvement purchase. Consumers tend to be very painstaking in seeking detailed information and trusted opinions about the product. The average time span for such a purchase is three months.
A brand’s post-purchase message is also important for high-involvement products. Consumers need to feel they have made the right decision and have received a good value. Confident customers become advocates for the product and can produce significant word-of-mouth awareness by giving their trusted opinions to other prospective buyers.
Information Search
People who purchase new cars first pick out the type of car they want by seeing them on the road, on television or in magazines. At this point, they become aware of what brands are available. They then begin sorting through information on the different available brands. This information search may include visiting a dealer, surfing the Internet, getting the opinions of family and friends, and/or gathering material from secondary sources like Car and Driver magazine. The majority of people feel that an automotive dealer is the most reliable source they have (Urban Pulse, Business Line).
Once people have received the necessary information, the search is narrowed down to a consideration set of typically three vehicles. At this stage, the consumer will generally visit the dealerships and test-drive the vehicles. The search for more detailed information intensifies and grows to include extensive pricing and financing information. The consumer will then decide which vehicle best suits his or her needs.
Frequency of Purchase
A consumer does not usually buy an automobile every day, week or even year. A typical consumer buys one car every two to three years. People who buy cars tend to keep them longer than those who lease. Consumers who buy cars generally consider it an investment.
However, leasing is becoming a popular alternative to buying. The recent popularity of leasing shows consumers are becoming intolerant of out-dated styling and technology. Those who lease change vehicles as often as every two years. Another factor that determines the time a consumer keeps a car is the duration of his or her financing term.
Since automobiles are generally bought so infrequently, top-of-mind awareness for the brand is extremely important. Being a part of the consideration set for everyone who buys a CUV is important for driving sales.
Decision Influences
There are many factors that trigger car buying. The top three are a substantial need for transportation, a change in societal status/prestige, or a financial promotion.
Typically, there are two types of reasons people buy cars, logical and emotional. The logical reasons include:
However, emotional reasons can often overpower the logical reasons. Emotional reasons include:
(Financial Services Journal Online, Urban Pulse, Business Line).
Consumer and Trade Promotions
Auto Shows Of the 19.6 million people that attend auto shows, 67 percent are between the ages of 18 and 44. Considering your primary and extended target populations (18 to 40 inclusive), the majority of car show attendees fit within the target population of the Matrix. Furthermore, 70 percent of the attendees intend to purchase a new vehicle within the next year. An auto show is an effective way for consumers to gain awareness of the vehicle without the pressure of automotive dealers. You can trust that auto shows will be an extremely effective and efficient way to reach your highly targeted audience (Toyota Case Study, page 4).
Since dealerships are an important part of the buying process, internal public relations would benefit consumers by keeping the message coming from the sales staff consistent with that coming from the media.
Marketing Objective and Strategy
The marketing objective Toyota outlines for this campaign in the case study is to increase awareness of the Matrix in the specified target market by 5 percent. The strategy will deploy a media mix that will ensure a consistent and effective brand message throughout the consumer’s purchase cycle. Delivering the right message to the right people at the right time will heighten awareness to create new Matrix owners and new Matrix advocates out of current owners (which will further increase awareness by word-of-mouth advertising).
Creative Strategy
· Message: The Matrix will offer the look and feel of a sports car combined with the functionality of a SUV and the quality of a Toyota at a price young people can afford.
· Tone: Sporty, agile and fun, yet tough, strong and durable.