Toyota and Honda, Essay Example

In order to generate an effective marketing campaign for the Lancel, it is essential to consider what its competitors at Toyota and Honda are currently doing to be successful. Firstly, since the target market is young families with a household income of 65K+, it is likely that at least one parent works for a living. In metropolitan areas, the company would therefore benefit by implementing brief advertisements at bus stops so people could view them as they wait, in addition to on buses and trains so they could be viewed as the targets commute. Furthermore, the advertisements themselves should be kept simple, as advertisements for most cars in this price range are. However, Kyosuma Corporation should emphasize the car’s low price compared to its competitors and highlight the additional features that the Lancel will have compared to the Toyota Camry and Honda Accord, which are also considered to be “mid-range” in terms of price and quality.

Although a majority of car dealerships use posters and public transportation advertisements to reach a large percentage of its target market, it is necessary for them to determine methods that would be useful for reaching consumers who live outside of major cities and therefore do not take public transportation. Therefore, the Lancel should focus on television and newspaper and online news advertisements as well. Television advertisements would be useful because if Kyosuma wishes to reach young families, it is likely that about half of the target market subscribes to cable television. This is an easy way to reach a bulk of individuals about the product that the company would not have had an opportunity to otherwise. In addition, newspaper advertisements and advertisements on online news sources will likely target the other half of this group. About one-fourth of young families who make $65,000 a year subscribe to newspapers and almost 100% of these families have internet access. Furthermore, a large percentage of older individuals still subscribe to newspapers and cable television. Therefore, Kyosuma will be able to reach most of its target market and other groups of individuals who are not targeted but still may be interested in purchasing the Lancel for its value. Since these groups will all be reached, it will be important to include elements of the car in the advertisements that suit the needs of all drivers in order to maximize sales.

In the public relations domain, it will be somewhat easy to gain press for Kyosuma Corporation based on the concept that new car companies do not frequently enter into competition with existing companies in the United States. This is a bold move, and interested newspaper journalists and television journalists will be welcome to interview company personnel and executives to make this into a story. Furthermore, paid advertising could be tied in closely to this attempt to receive free press. To introduce America to the Lancel, the company could pick spots in parks and malls for driving demonstrations and giveaways. This will spark the curiosity of the press even more.

For the sales promotion, I will mirror previous car advertisements in that slight breaks in price will be given near important holidays, such as President’s Day and Christmas. During this period, individuals will receive either a $2000 discount off their total car price or $1000 off of the down payment if they choose to lease the car. Leases will be given for only 36 month periods to ensure that ample profit is made of the car. Furthermore, the lease will help introduce the Lancel to the American market because buyers will not need to own the car forever, but they will be able to test it out for a long period of time.

The direct marketing techniques that I would use include targeted television commercials and promotional letters, while I will avoid using e-mailing and telemarking. The targeted television commercial was mentioned above, but the promotional letters may be even more useful to reach the target market. There are many car dealerships that offer their customers a slight discount after they graduate with a bachelor’s degree. By purchasing information from third parties, the corporation will be able to determine which members of the target age group is a recent college graduate, and then offer them a $500 discount. This is more persuasive than simply advertising the car because it offers them incentive. E-mail and telemarketing will not be used when trying to establish the company because they are indirect and may not adequately communicate the company’s message.

As stated above, I will allow my dealers to occasionally offer promotional incentives for purchasing because the goal is ultimately to sell as many cars as possible for the best price. However, the frequency with which this is done will determine on sales data of the Lancel compared to Toyota and Honda’s cars. In terms of social media, I will include hashtags on television and poster advertisement, which will link users to pictures of the cars in action.

References

O’guinn, Thomas (2008). Advertising and Integrated Brand Promotion. Oxford Oxfordshire: Oxford University Press.