Marketing Plan

Toyota Yaris / Hybrid

Progress Report| 5C &STP Analysis

CONTENT
1. EXECUTIVE SUMMARY ........................................................................................................................2
2. SITUATIONAL ANALYSIS ......................................................................................................................2
2.1. The Market ........................................................................................................................ 2
Turkish Market Overview.............................................................................................................2
Turkish Automotive Market Overview .........................................................................................3
2.1.1 Market Trends .............................................................................................................. 3
Pre Sales.......................................................................................................................................3
After Sales ....................................................................................................................................4
2.1.2 Market Growth............................................................................................................. 4
2.2. Consumer .......................................................................................................................... 5
Turkish Automotive Market Demographics .................................................................................5
2.3. Contex ............................................................................................................................... 7
2.4. Company ........................................................................................................................... 8
Toyota Global ..............................................................................................................................8
Toyota Turkey ..............................................................................................................................9
2.5. Collaborations .................................................................................................................... 9
2.6. Competition ....................................................................................................................... 9
2.7. SWOT Analysis of Toyota Yaris Hybrid................................................................................11
2.8. Mission .............................................................................................................................12
2.9. Product Offerings ..............................................................................................................12
2.10. Positioning ......................................................................................................................12

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1. EXECUTIVE SUMMARY
The goal of this marketing plan is to examine the Hybrid Automobiles. Yaris by Toyota, which is
seeking for more penetration in the market from the point of customer requirements and product
specifications, and by means of developing marketing strategies and suggestions to increase market
share.
2. SITUATIONAL ANALYSIS
The Yaris was one of the first Toyota model to be designed, developed and built in Europe. In
addition to being named European Car of the Year 2000, it has also been named as the best small
car in the J.D. Power Car Customer Satisfaction Study in Germany for four out of the last five years,
won awards as Best in class at the ADACs Gelber Engel quality award, Best cost of ownership
for a petrol car in Denmark in 2001, and Eco Car of the Year award in Finland in 2003. [1]
From 2003- 2011 Yaris enlarged its shares in Europe and Turkey by,

featuring tall-but compact designs which have compact exterior dimensions with an intelligent
use of interior space,
exceling passive and active safety features which results in 5 Star earning from NCAP in 2005,
replacing the digital readings with analog dials to become more user friendly and modern,
tweaking the engines and transmission even further in order to achieve class-leading fuel
efficiency,
introducing safety systems including Vehicle stability control (VSC), traction control (TRAC), antilock brake system (ABS), electronic brake-force distribution (EBD) and brake and

By 2011 Toyota Yaris has already created its own DNA model including high efficient package and
agile driving dynamics under great safety and quality values of Toyota brand.
In 2012 Toyota launched Yaris Hybrid Synergy Drive (HSD) concept which combines low fuel
consumption, emissions with uniquely relaxed and quiet driving in Europe and Turkey. [2, 3]
Today Toyota Yaris is seeking for more penetration in Turkish market.
2.1. The Market
Turkish Market Overview
Turkish population is the 17th most populous country in the world and stood at 75 million with
growth rate of 1.31% per annum. The Median age of the population is 29,7 and almost 50% is below
25 which makes Turkeys population much younger than European countries.
75% of the population lives in urban areas and nearly 17,8% of the population is located in Istanbul.
Turkish income per capita is app. 10.500 USD income per capita and ranked as 86th in 226 countries
from highest to lowest. Although income distribution is improving, 20% of the population holds the
83% of wealth. [5]

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The present governments political motto is to position Turkey as the 10th largest economy in the
world by 2023, which will be the 100th anniversary of the Turkish Republic. [5]
Turkish Automotive Market Overview
Turkish major market players have been established for 30-40 years and have comparably stronger
dealer networks. From 1960s to today competing brand number in passenger automobile market
reached 49 and nearly 1.000 exclusive dealers has been established
Negative economic conditions affect Turkish automotive market since the consumers are incredibly
price sensitive. Main drivers for the market are sale prices, fuel efficiencies with 60% importance and
designs/features. Price sensitivity of the consumers causes tough competition and results in profit
shortfall especially in the retail business.
Turkish automotive market is also affected by high purchasing taxation policy of the government. In
addition to VAT, consumers are subject to TV which is special usage tax according to motors sizes
and types.
Although the prices and the taxation regulations affect Turkish automotive market, consumer
monthly credit rates (around 1%) still creating convenient ground. [5]
In 2012 passenger and light commercial vehicle sales in Turkey was app. 778.000 and nearly 557.000
of the total sales were passenger automobiles. Sixteen (16) Brands out of 49 which made top sales in
2012 is given in Figure 1.

Figure 1: First 16 Brands in 2012 With Sales Numbers-ODD

-ODD
2.1.1. Market Trends
Market trends can be evaluated within 2 groups as Pre Sales and After Sales categories according to
importance of the competitive factors in coming 5 years.
Pre-Sales
Regarding to the OYDER most competitive factor will be fuel efficiency in coming 5 years with the
values of 31,5%.
Today the fuel price in Turkey is app. 5,03 TL/ Lt and increased by 280% within 10 years. According to
the minimum annual increase rate within 10 years, fuel prices can reach 6 TL/Lt in coming 5 years.
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Pre Sales Competitive Factors in Turkish Automotive Market and Fuel Prices from 2002-2013
While vehicle design features are in second place,ergonomy, comfort and convenience and
safety features will follow vehichle design features with a slight difference.[4]
Green technologies are getting more important due to the global warming issues caused by CO 2.
Today 20% of Turkish CO2 emission caused by transportation and especially becomes a major
problem in crowded cities which catches the consumers attention. In coming 5 years, being
environment friendly will become one of the competitive factor with 10,7% consideration value.
After-Sales
After-sale services are gradually becoming more important OYDER regarding to the requests of
consumers. Competitive factors for after sales category in coming 5 years are service quality,
competitive spare part prices and guarantee options. [4]

After Sales Competitive Factors in Turkish Automotive Market

2.1.2. Market Growth
The automotive market has been growing at an important scale in the past few years, shrank by 10%
in sales volumes in 2012 as compared to the previous year in Turkey. The automotive market in 2012
has grown only by 8%.
The number of vehicles per capita in the market is low as compared to the world average despite
Turkish young population and population increase. The number of passenger automobiles was 95 per
1000 people in 2003, whereas the number increased in the last 10 years up to 151 passenger
automobiles per 1000 people according to 2011 data in Turkey.
Turkish automotive sector executives foresee growth in the Turkish automotive market, but expect it
to occur below 50% growth in five years. [4]

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Total Automobile Sales Projection in coming 5 years according to the ODDs Roadmap Demand
Projections for Automotive Trade 2012-2018 is given in figure 6.

**2013-2018 projections: Income Increase by 5.5%; price and credit volume increase is fixed).

Figure 6: ODDs Roadmap Demand Projections for Automotive Trade 2012-2018

2.2. Consumer
Turkish Automotive Market Demographics
General Turkish automotive market statistics declared by the OYDER in 2012 are:

41% of the consumers are using bank credits,

85% of the new automobiles are registering on individual person,
78,8% of the consumers are married and 57,43% have children,
50,3% of the consumers are university or college graduates and 30,8% are high school graduates,
25% of the consumers directly contact with authorized sales to decide brand,
39,6% of the consumers are driving 750-1.500 km/month and %24,9 are driving 1.500-2.000
km/month,
%95 of the new automobiles have hull policy,
93% of the passenger automobiles are under or equals to 1600 cc engine volume and
C (compact) automobile segment has the highest sales volume within 6 segments.

Regarding to the market statistics, there are 6 main automobile segments in Turkey. They are A
(Mini), B (Entry), C (Compact), D (Medium), E (Luxury) and F (Upper Luxury). [6]
Within these segments C (Compact) has the biggest market share with 51,4% where B (Entry), C
(Compact) and D (Medium) segments hold. 97% of total market share. Detailed market segment
distribution and sales distribution per engine volume are given in Figure 2 and 3 respectively.

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Figure 2: Automobile (Passenger Automobile) Market Segment Distribution -ODD

Figure 3: Automobile (Passenger Automobiles) 2012 Sales Distribution per Engine Volume
3 main automobile segments explaining the Turkish Automobile Market demographics are B (Entry),
C (Compact) and D (Medium) and given hereunder below with their main characteristics.
B (Entry) Segment
B segment automobiles are in the small class category with 3.700-4.099 mm lengths. They are mostly
the market entry automobiles for the brands which have less quality interior designs and features.
Motor engine per volume are between 1.300 1.600 cc.
Prices changes from 35.000 -45.000 TL and the average price is 40.000 TL (*)
(*)

statistics based on the 2013 prices of top 5 brands within the segment

The sales of these automobiles have a significant increase rate in recent years due to the fuel prices
and heavy traffic in big cities like stanbul, Ankara and zmir.
In addition to the fuel prices and the heavy traffic in crowded cities, parking is also another
purchasing parameter for these small automobiles.
University students and/or new graduates and working women/moms are the main consumer groups
of these automobiles. [7]
C (Compact) Segment
C segment automobiles are classified as small family or medium with 4.100-4.600 mm lengths. They
are mostly offering enough interior designs, features and performance for the consumers. [7]
Motor engine per volume are between 1.400 1.600 cc.
Prices changes from 42.000-60.000 TL and the average price is 51.000 TL (*)
(*)

statistics based on the 2013 prices of top 5 brands within the segment

C segment is the most populated segment in Turkish automobile market and have a great
competition.
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Most of the first automobile buyers prefer C segment.

White color men and women, families with or without children and middle executives of the private
companies are the main consumer groups of these automobiles. [7]
D (Medium) Segment
These are the large class automobiles which are longer than 4.600 mm. They are offering adequate
interior designs, features and performance for the consumers.
Optional features of the B and C segments are mostly standard within this segment.
Motor engine per volume are between 1.600 2.000 cc.
Prices changes from 90.000 -150.000 TL and the average price is 120.000 TL (*)
(*)

statistics based on the 2013 prices of top 5 brands within the segment

Middle aged white color workers, big families with children and top executives of the private
companies are the main consumer groups of these automobiles. [7]
In addition to above given 6 main segments in Turkey, there are also 2 sub segments under B and C
called Hybrid Automobiles. Although only worldwide hybrid automotive sales of Toyota reached 14%
of total sales and 40% in Japan over 4 million units, there are 2 hybrid automobile alternatives in
Turkey and sales rates are still less than 1% of total market share [8, 9].
Within these sub segments, new university graduates/students, white color women, families with or
without children are main consumer groups. They are living in big cities (mostly in Istanbul and
Ankara), dealing with heavy traffic and having high level fuel consumption issues. Moreover they
have concerns about man made environmental pollutants and worrying about next generations.
2.3. Contex
In order to minimize the environmental impacts of automobile tailpipe emissions hybrid automobiles
are the core technology for future.
Most of the European countries and US have governmental promotions such as tax discount, special
lane allocations, discounted/ free highway and parking prices to encourage hybrid automobile usage.
Main reasons for these promotions are:

greenhouse gases are increasing day by day and result in global warming,
fuel prices are also increasing dramatically due to economic life cycle of petroleum production
and
fuel importer countries are dealing with high prices.

Unfortunately there are no governmental promotions on green technology hybrid automobiles in

Turkey although the 20% of total pollutants caused by transportation.
Tax burdens prevent hybrid automobiles increase their market share even they improve fuel
economy by around 20%-25%, and reduce all tailpipe emissions considerably as compared to an
equivalent non-hybrid automobiles. [10, 11]
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OYDER and ODD expects governmental regulations including promotions such as TV or Motor
Vehicle Tax Discounts for hybrid automobiles in coming 2-3 years according to Automotive Strategy
Government Publication made in 2012.
2.4. Company
Toyota Global
Toyota, the pioneer of Japans automobile industry was established as an independent company in
1937. Since 1958 the company has been exporting and started to manufacturing abroad. In 1950
Toyota Motor Sales Company was established which merged into the Corporation in 1982. Managing
a truck and four automobile companies and producing over 8.7 million vehicles per year, Toyota is
today the second largest automobile producer in the world. [12]
Sales figures by region from 2007 to 2012 are given hereunder below [9]:
Region
North America
Latin America
Europe
Africa
Asia
Oceania
Overseas total
Japan
Worldwide total
(1 unit = 1.000 vehicles)**

2007
1.636,90
183,1
806,5
145,7
1.387,30
148,9
4.308,60
4.226,10
8.534,70

2008
1.404,80
194,8
688,3
179,2
1.590,00
141,4
4.198,40
4.012,10
8.210,50

2009
1.189,10
181,5
507,3
102,8
1.501,40
96,8
3.579,00
2.792,20
6.371,30

2010
1.404,00
204,3
461,7
123,4
2.027,40
119,4
4.340,40
3.282,80
7.623,30

2011
1.206,10
195,1
460,3
150,8
2.062,80
93,7
4.168,80
2.760,00
6.928,80

2012
1.720,60
242,8
461,4
151,7
2.565,70
101,4
5.243,60
3.492,90
8.736,50

Toyota has a strong position in 170 countries and a market leadership for hybrid automobiles, as well
as a good range of automobiles for various customer groups. With the establishment of the Lean
Management philosophy and Total Quality Management 60 years ago, Toyota acquired a lot of
experience how to improve production flexibility, quality, costs and capacities. Today Toyota has a
high manufacturing flexibility on the assembling lines. [12]
Today Toyota has reached over 4 million hybrid automobile sales all over the world as a market
leadership and launched the Toyota Yaris hybrid automobile for Turkish and European markets at the
end of 2012. Although Toyota challenged green debate by introducing the first mass produced hybrid
car in 1997, European and especially Turkish markets are new and challenging areas.
Toyota meets with its automobile range quite well the needs and taste of todays consumers. One of
the main reasons is the existence of their fuel economical, green automobiles, especially developed
for urban areas. [12]

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Toyota Turkey
Toyota Turkey was established in 1990 with the partnership of Sabanc Group under the name of
ToyotaSa. In 1994 Toyota started to produce vehicles in Sakarya plant which is now exporting over 50
countries. It is one of ten biggest oversea manufacturing plants with 150.000 vehicle/year capacity. In
Sakarya plant Toyota produces Verso and Corolla models. Toyota Turkey product line offers 11
passenger automobiles including worlds most preferred automobile Corolla and one light
commercial vehicle is a total of 12 models. [13, 16]
In addition to current production line, Toyota Turkey is racing with France to get the investment of BSUV segment cars including hybrid sub segments. [11]
Today Toyota reached 4,4% share of Turkish automotive market in 2012 and working to increase the
market share by the help of new launching models including hybrid automobiles.
2.5. Collaborations
ALJ is the biggest independent distributor of Toyota Group. It was established in 1945 and has been
working with the group for almost 60 years. ALJ started as a Toyota Saudi Arabia distributor in 1955
and then enlarged its operations to real estate, advertisement, media, automotive and consumer
finance.
ALJ is still running distribution operations within 12 countries (Japan, Germany, China etc) including
Turkey and has a great success based on the Respect to Everyone and KAIZEN philosophy (welcoming
the customers as guests and behaving the workers as partners) that it adapts from Toyota.
Today ALJ is running Toyota Pazarlama ve Sat A. with 60 authorized Toyota dealers and 58 Toyota
Plazas in 40 cities of Turkey since 2009. [14]
2.6. Competition
In emerging countries like Turkey; automotive markets become tougher for the worldwide strong
brands/companies. Automotive companies are monitoring the competition in Turkish automotive
market and reveal all their forces for B & C segments where the maximum purchasing rate is seen.
World giants such as Ford, Renault, Toyota and FIAT bear themselves with strong competition in
these segments and whole market.
In hybrid sub segments of B & C, Honda CR Z seems as only competitor which entered Turkish market
in 2011. When we compare hybrid features of this same price level automobiles; such as gas
emissions, fuel consumption; Toyota Yaris becomes more attractive for consumers. Moreover it has
automatic transmission system which makes the driving experience more comfortable and easy.
Honda CR Z and Toyota Yaris Hybrid comparison can be seen hereunder below with all technical data
including hybrid technology and performance. [15]

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Comparison Table of Yaris & CRZ

Parameters
Number of Cylinders
Displacement(cc)
Fuel System
Transmission
Gross Weight Vehicle (kg)
Fuel Tank Capacity (lt)
Luggage Capacity (lt)
Maximum Speed (km/h)
0-100 km/sec
Fuel Consumption Urban Driving (lt/100 km)
Fuel Consumption Extra Urban Driving (lt/100 km)
CO2 Emissions (g/km)

Honda CRZ
4
1497
Electric Fuel Injection
Manual
1.170
40
215
200,0
9,9
6,1
4,4
5,0

Toyota Yaris
4
1497
Electric Fuel Injection
Automatic
1.115
36
286
165,0
11,8
3,4
3,7
3,7

However, Toyota's Yaris Hybrid may be considerable as peerless for taking share from B & C and their
hybrid sub segments; B and C segments are the gladiators area. Main players and their brands are
given in the following tables with latest 2013 sales figures.[17]

No

Brand/Model

1
2
2
4
5
6
7
8
9
10

Renault Symbol
VW Polo
Renault Clio
Opel Corsa
Ford Fiesta
Hyundai i20
Dacia Sandero
Peugeot 301
Fiat Punto
Citroen C-Elysee

No
1
2
3
4
5
6
7
8
9
10

Brand/Model
Fiat Linea
Renault Fluence
Ford Focus Sedan
Opel Astra HB
VW Jetta
VW Golf
Toyota Corolla
Honda Civic
Opel Astra Sedan
Hyundai Accent Blue

B Segment
August Sales 2013
2.791
2.228
1.421
2.043
1.149
1.285
914
861
639
572
C Segment
August Sales 2013
2.772
1.267
1.786
1.656
1.681
1129
1.906
995
976
960

2013 Total Sales

17.985
13.865
12.664
12.436
11.497
10.653
6.835
6.878
4.588
6.075

2013 Total Sales

24.919
16.071
12.932
12.011
11.569
10.272
8.044
6.876
7.322
6.597

Regarding to the sales figures of B & C segment, Toyota still do not have a enough market share in
Turkish automotive market contrary to US and European markets.
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In this case main concern is to differentiate the Yaris and get advantage in most focused target
segments. Otherwise Toyota Yaris cannot take a market share from B & C segment automobiles
which have important advantages such as variety of models, interior features and high performance
fuel efficient engines. Governmental promotions for hybrid automobiles could be the main
advantage for Toyota Yaris in these segments.
In addition to B&C segments and their hybrid sub segments, Yaris hybrid also has to compete with
full electric/chargeable automobiles in coming years. Global companies such as Renault, Chevrolet
and Opel will be the main competitors.
Renault has already launched 4 different models including Renault Fluence ZE which has been
manufacturing in Turkey. As a local producer Renault has important advantages such as government
investment support and low taxation green technology. [18]
Chevrolet and Opel also have advantage in the market as first movers with Renault. Moreover, Opel
has a great experience of Turkish automotive market since it is one of the main players in current B &
C segments.
However, they are green and governmentally promoted in terms of taxation; full electrical cars have
more complex structures rather than hybrid cars for Turkish consumers. According to that complexity
and immature infrastructure, only 85 electrical automobiles sold in 2013.
As a result, Yaris should act as an attacker in B & C segments and maintain its leader position in
hybrid sub segments. Toyota has to differentiate the Yaris among others by focusing on right
segment targets and putting long-term marketing strategies.
2.7. SWOT Analysis of Toyota Yaris Hybrid
Strengths

Exceptional fuel efficiency and consumption (3,4lt gas consumption in 100km in traffic/urban
areas)
Achievable Prices
Strong brand image for hybrid automobiles worlds market leader with over 4 million unit
sales.
Strong family car image of Toyota brand
Environment conscious and provides carbon emissions
Driving by electrical power up to 50km/speed for 2 km
Augment distribution and serving network
Quite motor engine/driving experience
Seamless response to driving situations and driver behavior
Right combination of power from electric motor and combustion engine
No interior space reduction for battery pack / enough interior space up to 5 people
More compact electric motor invertor
Efficiency of breaking regeneration system ( up to 100.000km life expectancy for breaking
pad)
Automatic transmission
Reliable & high quality brand image in Turkish market
Eco & pure electric drive mode alternatives
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Easy parking in crowded cities acc. to compact exterior design

Opportunities

First movers advantage in B segment hybrid automobiles

B & C segments are most preferable automobiles in Turkey
Less competition in hybrid automobiles market
Increasing fuel prices

Weaknesses

Slightly high price for B segment automobiles in the market

Limited models(one combustion engine type/100hp)
Low B segment automobile share of Toyota (whole market share %4,4 in 2012)
High taxes (no special regulation for hybrid automobiles)
Inadequate automotive components industry
Expensive spare parts
Low advertisement and promotions of Yaris hybrid

Threats

Entry of fuel efficient automobiles with eco engine motors

Low tax regulations for electric /chargeable automobiles
Strong competitors (Ford & Renault) in B segment
Developing public transportations

2.8. Mission
Considering the conditions of our century, one main subject can be determined as the objective of
the innovations; to make green, fuel efficient and affordable automobiles for everyone, everywhere.
As a consequence of this, sales of Toyota Yaris Hybrid will increase in Turkey.
2.9. Product Offerings
Toyota Yaris Hybrid combines advanced benefits of Hybrid Synergy Drive Technology; low CO2
emissions, relaxed/comfortable and silent driving experience with aerodynamic exterior and practical
interior designs.
2.10. Positioning
The Toyota Yaris Hybrid offering B and C segment consumers who live in big cities and deal with
heavy traffic with a great combination of small, fuel efficient, compact, relaxed, green and silent
automobile experience.
The main target groups within B and C segments are:

new university graduates/student,

white color working women/mom and
families with or without children (as their second car)

who have concerns about man made environmental pollutants and worrying about next
generations.
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REFERENCES
[1] www.toyota.co.uk
[2] http://www.autoevolution.com
[3] http://www.toyota-europe.com
[4]KPMG Turkey 2013 Automotive Executives Survey
[5] http://www.slideshare.net
[6] http://otomotivden.blogspot.com
[7] http://fordotosaanaliz.wordpress.com
[8] http://www.automotiveworld.com
[9] http://www.toyota-global.com
[10] http://www.sabah.com.tr
[11] http://www.milliyet.com.tr
[12] Toyota Going Green /Research /Universit della Svizzera Italiana
[13] www.toyotatr.com
[14] http://www.aljtoyota.com.tr
[15] http://www.honda.com.tr
[16] www.toyota.com.tr
[17] http://www.arabam.com/
[18] http://www.renault.com.tr

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