Toyota’s differentiated targeting strategy for various market segements

In providing different models for various geodemographic and psychographic market segments to satisfy the needs/wants of custmers in those segments, Toyota tailors its advertising efforts towards alligning with the local cultures to ensure customers feel familiar with its brand and hence establishes different stories through its localized commercials which differ in languages, cultural assumptions and lifestyles.

The commercial for Toyota Auris, a compact 3/5 doors hatchback (available in European market but not North America) has a European feel with its focus on a man in a crowd defying an authoritiative figure for a new exiciting Auris.

YouTube Preview Image

Similarly, Toyota GT 86’s commercial is about a man trapped inside a CGI (Computer Generated Imagery) city discovering a Toyota GT86 from the real world, feeling alive for the first time and deciding to make his escape.

YouTube Preview Image

While the first two commercials probably target younger European generations, its commercial for Verso, a compact MPV (MultiPurpose Vehicle) in German language for the German family market, depicts father as a hero.

YouTube Preview Image

As for its United States consumers, Corolla 2014 commercial attempts to have a hip and cool image for different American generations.

YouTube Preview Image

With trucks gaining more popularity in America, Toyota Tacoma model commercial highlights Tacoma’s features in interesting way for young adults segment . For instance, a girlfriend’s tear drops falling in the car seem nothing against its water-resistant seats and all-weather flooring.

YouTube Preview Image

Likewise, Toyota Tundra commercial targets certain baseball-loving American demographics.

YouTube Preview Image

Meanwhile, Toyota Corolla and Camry commericals, mainly targeting Korean but most likely also Asian urban populations, have different advertising approaches. While the former is in a music video style featuring Hyuna from 4minute, a popular korean-pop girl group, the latter is in a drama style featuring Lee Min Ho, a famous korean actor.

YouTube Preview Image YouTube Preview Image

A Response to Lauren O’Neil’s article “Grocery store that only sells expired goods aims to combat food waste”

According to a Harvard University report, “40 % of food in the U.S. is needlessly tossed each year due to exaggerated sell-by date and Americans may be unnecessarily contributing to $160 billion in annual food waste because date labels are not yet standardized in the U.S.

Doug Racuch, a former head of Trader Joe’s, has recently announced plans to open up a new, first-of-its kind hybrid grocery store/restaurant exclusively selling food that is slightly past its “best-before” date, called “The Daily Table.”

As a firm believer in no food waste, I applause such innovative thinking and plan. I do often buy discounted produce/prepared foods at Costco, Superstore, T&T and small local groceries stores. However, these food products bought at a discount are not considered the  ‘expired’ foods. For example, a hot dish sold at a discount at T&T during the last two hours of shopping hour has not gone bad yet. And it would (and should) be good for the next couple days.

As for the products past its best-before date, they are likely to be ‘perceived’ as, of lower quality or even unsafe to consume. However, the lack of the date-labeling standards means that the best-before/expiry date may not represent the actual shelf life. Assuming that the groceries do not dare compromising the consumers’ health – and its brand image/reputation, the dates they put on the foods are likely to be somewhat shorter than the actual shelf life. Then, it may be safe to consume the food past its best-before date.

Also, to attract the customers, the prices have to be lower than that of the original groceries stores.

If The Daily Table has become a success, some price-sensitive customers may not purchase foods at the original groceries store but wait till the products arrive to The Daily Table. Then their sales and margins will suffer.

Source: http://www.cbc.ca/newsblogs/yourcommunity/2013/09/grocery-store-that-only-sells-expired-goods-to-combat-food-waste.html

Ethical Labeling Standards: How much information should be there on a label?

In United States, as more and more consumers have become more educated, aware and conscious about social, health and environmental implications of their consumption habits, they demand to know more about the products – including their content, where and how they were made and their implications. And the firms and industries must match up the supply with the demand in order to maintain the markets.

For example, the labeling standards for the cigarettes industry has transformed from making the cigarettes packaging to include a warning message necessary (such as “Smoking causes lung cancer, heart disease, emphysema, and may complicate pregnancy”) in 1960s to requiring more graphic warning labels that feature color images of the negative effects of tobacco use in 2009.

The main question that the customers should ask is

“Would we change our purchasing habits if such information is available?”

Apparently we would and do in the cigarettes case. Hence, its labeling practice is indeed appropriate and necessary although the tobacco companies are now pulling back, arguing that “the proposed warnings went beyond the factual information into anti-smoking advocacy.”

Then it is important to ask how much information should really be there on a label? 

The food industry is an interesting case of a labeling/information “miss,” although Fair Packaging and Labeling Act (1966) requires manufacturers to state the content of the package. For example, many traditional canned refried beans are made with hydrogenated lard, or pig fat. Also, some of the baked products such as bagels and breads are made with the amino acid L-cysteine, which comes from human/hog hair and poultry feathers. Such information matters for vegetarians: some may not know about them.

Again, how much information should really be there on a label?

How do we draw the line? Can we push it (as the industry/firms pull it)?

Sources: 1) http://www.enotes.com/topics/federal-cigarette-labeling-advertising-act-1965

2) http://www.usatoday.com/story/news/nation/2013/03/19/cigarette-warning-labels/2000549/

3) http://www.huffingtonpost.com/2013/09/20/non-vegetarian-ingredients-foods_n_3942454.html?ir=Canada#slide=967552

Celebrities in the Commercials

In marketing and advertising, celebrities play a powerful role in creating and enhancing value(s) to the products. Which celebrity appears in which product commercial tells a lot about which market segment, or focus audience, it is targeting towards.

For example, One Direction and Drew Brees have appeared in a Pepsi commercial, drawing both young female fans and American-football-loving males into liking Pepsi.

YouTube Preview Image

H&M also gets David Backham in its commercial (and also a famous director, Guy Ritchie – Madonna’s ex-husband – to direct). The target audience is most likely to be those in 20s, 30s and perhaps even teens. Most probable is that the majority of them are females.

YouTube Preview Image

There actually are (less costly and yet effective) alternatives to using the celebrities in the commercial. For example, getting unknown amateur actors or those in one’s social circle to act, using some drawings OR just doing a commercial simply focusing on the product’s features. Many commercials do take on these alternatives, save a lot of advertising cost and are successful in garnering attention and gaining popularity with the audience.

And yet, many products companies are very eager in getting celebrities to endorse, promote and advertise their products. Why? 

Primarily, they want to easily capture a great number of followers, fans, of particular celebrities as their target market, assuming that the loyalty to the celebrities extends to an automatic loyalty to the product brand, and thereby gaining some market advantage over their competitors.

Hence, David Beckham keeps appearing in many commercials, “banking $42 million from commercial endorsements from sponsors.” Source: http://www.forbes.com/profile/david-beckham/

So who else is after Beckham. Samsung!

YouTube Preview Image

While Samsung seems to gear Beckham commercial more towards the global market, it also has another commercial with the korean celebrities, aiming mainly for the korean youth market and also perhaps the Asian youth market.

YouTube Preview Image