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In 2010, Toyota unveiled a new concept that would assess a strategy to attract more customers to its experienced car design that uses battery electrics for the vehicle to functionality BEA 1 1033 (B??chamel, 2006). The niche markets that Toyota targets are customers that are searching for an experienced car that will not harm the environment, along with avoiding hefty fuel expenses. Toyota has researched the demand of the customer in the future as the demand for fuel is increasing, there is limited supply of fuel; therefore, customers will want an alternative.
Toyota focuses on innovation, as scientists researched a way to help the environment and customers. Targeting the niche market, Toyota designed the cars to be innovative, colorful, stylish and at an affordable price to attract young customers CITATION YE 1033 (Cabala, 2013). Toyota aims on taking over North America as a main target market creating different varieties of hybrid models aiming to sell a million per year. Customer satisfaction is important for Toyota as they are designing the ecological car reducing the weight and cost of the car to improve the batteries energy density, reliability and life CITATION YE 1033 (Cabala, 2013).
Partnering with Panasonic Toyota was capable of improving its hybrid technology to achieve maximum electricity to follow the speed of the highway and capable of maintain longer distance for traveling. Scientists were capable of developing devices within the car that will inform the passenger how the car functions and the battery life. Toyota decided to develop hybrid niche in the marketplace by investing in ‘energy saving technology and is yet to overcome its competition in the marketplace to prove its advanced hybrid technology.
Ford and Honda are one of Toast’s main competitors as they are in the process of developing a new hybrid technology car that will challenge with Toasts hybrid car. Clients will be willing to pay more depending on saving fuel. Toyota is marketing a car that has great environmental performance as well as great driving performance CITATION Barbs 1033 (Brooke, 2005). Toyota might have not been the first automaker to start the hybrid car concept; on the other hand, has succeeded to elaborate and improve the CEO-friendly equity.
Clients are usually attracted to this market because it would allow them to save money, as gas prices are steadily increasing. Toyota invested in advertising by posting billboard ads and appearing in the super bowl commercial informing the clients it is convenient to save eel. Marketing team where sent to promote the hybrid model of Toyota. Over 40,000 people have participated as they observed trailers about the hybrid design; the campaign successfully attracted 25% of the visitors inquiring further information about the hybrid vehicle CITATION Ha 1033 (Holiday, 2007). Sustainable development was a key to Toast’s marketing campaign as people had the opportunity to plant trees in different states achieving 50,000 trees to help the environment, known as the hybrid tour. To attract more people further information can be seen on their website on how they can participate. A small team of engineers in the company are working on improving the energy efficiency of the car. Every year they are being honored with the national model of sustained excellence award “Now, when Americans think of hybrids, they think of Toyota” CITATION Ha 1033 (Holiday, 2007).
Niche Marketing is used to target accessible customers that will aid the company to grow fast, using an explicit product or service to create good customer relation for the future. Toyota targets a niche market for customers that are looking for an CEO-friendly vehicle that will save up the purchase of fuel by mainly sing, electric power. Toyota decided to enter a niche market, that allowed the company to gain a competitive advantage, making it harder for the competitors to make an energy efficient and effective product.
Toyota took the risk and identified a new need, of having an energy efficient car to establish the Toyota Pries. Toyota promoted the Pries by advertising on media outlets concerning the environment and successfully took over this market, encouraging other competitors to Join the market CITATION Angel 1033 (Bias, 2014) . Toyota followed five steps to control the niche rarest CITATION Angel 1 1033 (Bias’, 2014)Meet the customers need: The Company found a new product that will satisfy the customers’ needs of a product that is not available in the market.
Listen and understand: Clients supply and respond with feedback. With Toyota having a high presence in the world today, an international work force Manage Costs: Toyota has estimated the number of potential buyers and distributed the product to specific clientele Test the market: Differentiated their product from competitors and advertised according to their customers understanding. Managing their risk to compete in the niche market, Cut your losses: Toyota focused on the timing the clientele would most benefit from their product.
Today our world faces economic crisis and fuel shortage making it perfect timing for Toyota to unveil their product Toyota created the Pries hybrid targeting young clientele costing around $22,500. One of the biggest challenges the company faced was attracting young customer to purchase the hybrid vehicle and as solution the company manufactured different models that attracted younger customers. The company successfully sold around 473,000 hybrid cars making the Toyota Pries the biggest selling hybrid allowing the company to innovate the car design launching a hired generation a year later CITATION Reel 1 1 1033 (Reed ; Bernard , 2011).
Toyota expected competition with other innovative hybrid technologies from rivals Honda and Ford Motor. Ford Motor introduced the hybrid fusion offering more space than the Pries and achieved positive feedback for its performance and display features. Honda one of Toast’s main competitors sold 20,600 cars and started taking over the market as they offered maximum passenger comfort. In response Toyota developed a family model for the hybrid, attracting variety of young adult’s attention, asking back the market with a main stream image, creating a engagement, arising awareness to help the environment.
Toyota started manufacturing 600 prototypes of plug in for the hybrid to increase the battery life in order for them to control the market CITATION Reel 1 1033 (Reed ; Bernard , 2011). Companies such as Toyota gain confidence by targeting the need of consumers, by handling the supply and demand of the consumers and positioning themselves in the market. Targeting one demographic niche market, an age group from 18 to mid-ass’s that can afford a certain range of cars. Toyota strategically targeted them through sponsoring events and concerts they are most likely to attend.
Online strategies were used by the marketing team, creating a website to customize the customer’s vehicle by giving them the chance to build the car according to their specifications, within limits; the result was customers spent the same amount on the car three years after on customization CITATION Tommy 1033 (Tomlinson, 2008). Competitors Honda launched a similar design the Honda element succeeding first year and failed to profit long term, as the company did not choose the correct way to approach this ice market, by advertising the car globally and received consumers from different age groups, not targeting a specific segment.
The results are shown below in Figure A . Figure A: Comparison between Toyota Scion and Honda Element both Hybrid vehicles -3892554889500 CITATION -round 1033 (Tomlinson, 2008) Secret that the company uses to target the Niche Market is differentiation and adapting to the customers needs that competitors do not offer therefore the company focused on improving the service, and technology to maintain their global brand image. Toyota started from scratch to access the Toyota Scion concept
CITATION ZГ??ROR 1033 (ZГ??RAGE, 2009). Combined a team of scientist to improve research Recruited skilled development team to create different models Strengthened the sales team to develop cooperation with the clients The company still seeking innovation to access the brand image Toyota uses Integrated marketing communication (MIMIC) by marketing campaigns for the Toyota Pries creating an adventure appeal for the costumer satisfaction in addition to fuel efficiency and high technology that the will use.
The campaign partnered with Hasher creating following a teenage theme creating imaginative childhood events persuading young repossession purchase a horrid vehicle presenting during the campaign innovative visual tools and information about the Toyota Pries. The Pries team during the campaign convinced customers that purchasing a vehicle is a big decision; therefore, Toyota are ready to take the challenge and engage the customer through an entertaining driving experience designed to function urban friendly.
The campaign was successfully promoted through websites and television targeting its niche ; Robinson, 2012): Broadcast: During commercials targeting young adults prior to an environmental or humor aerogramme (Dolphin tattoo and The Simpson) Digital: Digital programmed partnered with Youth, Backbone and Pandora attracting customers attention through Smart Phones, Laptops and tablets gaining information through their clients behavior.
Youth will promote the Pries c offering users entertainment games with videos informing the customers Dealership experience with Toyota Toyota save up money plan Exploring technology within the Pries c Consumer Experiences: Drive tests were offered to test the vehicle first hand, so the customer can integrate to the cars warm atmosphere and secure the trust of the consumer.
Advertisement: Advertisement on TIMES article, Sports Magazines and Environmental Articles were illustrated calling out potential customers to learn more about the Hybrid technology The integrated Marketing communication methods for the Hybrid Toyota Pries C was successful as it budgeted El 2. 5 million achieving a revenue of EWE million exceeding expectations and raising environmental reinterpretations BEA 1 1033 (B??chamel, 2006).
Toyota has targeted successfully a niche market for clients seeking for environmentally friendly users creating competition with electric cars targeting customers in certain locations at start such as California and Scandinavia where gas emission is strict planning on giving the driver the same experience as in normal automobiles. In Conclusion Toast’s strategy to sell smaller quantities at wider range according to customer’s preferences, targeting an ecological Niche market has grown popular over the past years allowing other companies to embrace such a strategy.
Toyota has invested the hybrid Pries and a series of other hybrid cars investing millions taking risks and competes in the mass market against other rivals. One of the most important marketing strategies that Toyota used was advertisement focusing on its niche market focusing on customers that are ecologically friendly and young adults that want to save fuel money. Toyota has accustomed to the consumers preferences especially during our tough economic times by targeting carefully their consumers gaining customer satisfaction and revenue from a new niche which is the sustainable hybrid invention.
Honda rivals entered the mass market with the Honda element competing with the Toyota Scion offering a car that is more sophisticated with higher technology and affordable price; yet, did not target a specific niche market, giving Toyota an advantage to control the mass market. Targeting a specific niche market does not depend on advertisement as it is too expensive and time consuming so Toyota advertised only targeting young adults and environmental adults. Direct communication was used through campaigns and events to gather customer feedback, so that the company can react immediately advancing their icicle.