Toyota Creates Total-Market Marketing Model

Toyota Embraces Changing Face of U.S. Market

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Dec 18, 2013, 07:00 ET

TORRANCE, Calif., Dec. 18, 2013 /PRNewswire/ -- Walk into any dealership in the United States today, and you will notice the vast diversity of customers shopping for vehicles. In the changing marketplace, the multicultural customer is the new mainstream. In fact, according to US Census data, 88 percent of all future population growth will be from multicultural consumers by 2030.

Over the last 20 years, Toyota has emerged as the number one brand among Hispanic, African American and Asian American markets. To make sure Toyota continues to address the needs of the new marketplace, the manufacturer will adopt a more cohesive marketing approach to paid, earned and owned media by placing previously separate agencies into a total market model, called Total Toyota or T². While the agencies remain separate and distinct business units, they will collaborate under the T² umbrella. To complement the agency approach, Toyota's in-house multicultural marketing team will now be integrated across all product marketing teams.

In line with Toyota's move towards greater North American autonomy, the new marketing approach reflects the diversity of the US population, unique among the regions in which Toyota operates.

Saatchi & Saatchi Los Angeles – which is owned by Publicis Groupe and has been Toyota's advertising agency of record for more than 20 years – will lead the new model. Joining Saatchi are four additional agencies with decades-long Toyota partnerships. Three of the agencies have Publicis ties, including Burrell Communications (African-American), Conill Advertising (Hispanic), and Zenith (broadcast and out-of-home media buying). InterTrend Communications, an independently-owned and operated agency focused on the Asian-American consumer, also joins the model.

The introduction of T² allows Toyota to focus even more clearly on its customers with communication and marketing that best represents their sensibilities and shopping preferences. The new model delivers on Toyota's "Let's Go Places" promise to serve as a model for innovation, enriching lives and connecting with customers in new ways.

T² incorporates best practices from other global industries and covers the spectrum of advertising and creative communications. One of T²'s main responsibilities will be devising and implementing ideas that make sense in the increasingly diverse total market. This allows Toyota to:

Unify messaging
Increase its media impact
Leverage combined creativity and cultural sensibilities through focused agency teams
Connect with customers in the right way

Integration of agency marketing efforts has begun and will be operational when Toyota begins its 2015 fiscal year, on April 1, 2014.

"Toyota's new marketing model represents another step in our efforts to meet the changing needs of the US marketplace," said Jack Hollis, Vice President of Marketing, Toyota Motor Sales, U.S.A., Inc. "In the past, our multicultural agencies have operated separately. Bringing the teams together will help Toyota maintain brand leadership and connect with consumers in ways most relevant to them."

About Toyota

Toyota, the world's top automaker and creator of the Prius, is committed to building vehicles for the way people live through our Toyota, Lexus and Scion brands. Over the past 50 years, we've built more than 25 million cars and trucks in North America, where we operate 14 manufacturing plants and directly employ nearly 40,000 people. Our 1,800 North American dealerships sold more than 2.3 million cars and trucks in 2012 – and about 80 percent of all Toyota vehicles sold over the past 20 years are still on the road today.

Toyota partners with philanthropic organizations across the country, with a focus on education, safety and the environment. As part of this commitment, we share the company's extensive know-how garnered from building great cars and trucks to help community organizations and other nonprofits expand their ability to do good. (NYSE:TM) For more information about Toyota, visit www.toyotanewsroom.com.

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SOURCE Toyota