Toyota's Advertising Strategy: A Winning Formula

Strategic Insights -

Toyota's grip on the Australian car market has shown no signs of letting up, with the brand securing its third consecutive year at the top of the sales charts. Despite not being the biggest spender on advertising, Toyota's clever marketing strategy, led by its agency Saatchi and Saatchi, has proven to be a winning formula. The company's Camry model, which will be manufactured at the new $420million plant at Altona, is the cornerstone of Toyota's business plan in Australia, and its success has been instrumental in the company's aggressive export program to Asia.

Key Takeaways:

  • Toyota retained its position as the top-selling brand in Australia for the third consecutive year, despite not being the biggest spender on advertising.
  • Toyota's advertising budget was estimated to be around $35million per year, significantly lower than its competitor Mitsubishi's spend.
  • Saatchi and Saatchi's campaign for the Camry won a gold award in Australia and a silver at Cannes, recognizing the success of the "wide body Camry" concept.
  • The Camry is a critical part of Toyota's business plan in Australia, spearheading the company's aggressive export program to Asia, particularly Thailand and Malaysia.
  • Despite innovative advertising efforts, sales of the Camry initially lagged due to high pricing, but picked up late in 1993 as Toyota lifted sales incentives.
  • Toyota's vice-president, Mr John Conomos, attributed the company's improved profitability to a lift in the overall economy, matching the improvement in Toyota's trading performance.

Statistics:

  • Toyota's advertising budget was estimated to be around $35million per year.
  • Toyota's Camry model was manufactured at the new $420million plant at Altona.
  • Toyota retained its position as the top-selling brand in Australia for the third consecutive year.
  • Mitsubishi had the biggest market spend per vehicle in 1993, according to Saatchi and Saatchi's executive creative director, Mr Bob Isherwood.
  • The Camry was Toyota's best-selling model in Australia, accounting for a significant portion of the company's sales.
  • Toyota's profit improved significantly in 1993, matching the lift in the overall economy.

Sources:

  • Business Review Weekly, 1991: 'Australia's best creative director'
  • Saatchi and Saatchi press release, 1993
  • Toyota Motor Corporation of Australia press release, 1993
  • 'The Advertiser', 1993: 'Toyota's Saatchi and Saatchi campaign wins gold award'