Executive Summary

Toyota is managed by Saud Bahwan Group and holds a significant share in the automobile industry of Oman. The first section of this report analyzes the external and internal macro-environment factors that influence the development of the company in Oman. The analysis helps provides the basis for the market segmentation. The objectives of this marketing plan are to improve customer satisfaction along with increasing the revenue for the next three years. This report discusses the strategies for the implementation of the marketing plan.


Introduction and Objectives

Toyota is one of the leading brands in the dynamic automobile industry of Oman. The company is managed by Saud Bahwan Group which is a diversified business group in Oman. The company ensures the provision of services within a 50 km radius of its customers. The company provides round-the-clock services to its customers. The company manages one of the largest Toyota Service Centers in Muscat. The service center is equipped with state-of-the-art facilities and comprises 745 stalls. The Mega Body Shop at Ghala employs an assembly line repair system to provide round-the-clock and quick services to the customers. The Saud Bahwan group also manages the Warehousing Facility of Toyota at Muscat and ensures the distribution of Toyota’s products across the nation in minimum time (Toyota, 2018).

The objective of this report is to develop a marketing plan for Toyota Prius which will enable the company to improve customer satisfaction over the next three years. This report will analyze the current market of Toyota in Oman and analyze internal and external market conditions that are influencing the positioning of the company in the automobile industry of Oman. This report will highlight different marketing strategies that the company can employ to increase customer satisfaction.

Current market and company situational analysis



The strong brand is the key strength of Toyota in Oman. The company has been sustaining a strong brand name in global and local markets for many years. The strong positioning of Toyota in the automobile industry of Oman is facilitating the expansion of business across the country. The strong research and development process is another strength of Toyota that enables it to satisfy the customer needs with innovative designs. Moreover, Toyota is one of the companies in the world that manufacture fuel-efficient hybrid cars.


The organizational structure of Toyota is rigid and poses challenges for the operation of the company in different regions. The hierarchical organizational structure limits the efficiency of the organization. This structure minimizes the ability of the organization to efficiently address the operational issues in different regions of operations (Neubert, et al., 2016).


The controlled prices of oil are accelerating the demand for automobiles. Toyota can exploit this opportunity and increase its market share in Oman as well as other regional automobile markets. The increasing demand for fuel-efficient hybrid cars is an opportunity for Toyota to boost its innovation process and introduce further fuel-efficient engine designs. The company can also shift its focus toward the development of low-priced electric cars to offer differentiated products in Oman’s automobile market (Hannan, et al., 2014).


Many other global automobile companies are penetrating the markets of Oman. These companies are offering innovative and valuable designs at minimum prices. Moreover, the increasing market shares of electric car manufacturing companies are posing threat to the positioning of the company in the regional markets (Mi & Masrur, 2017).




The political conditions of Oman are stable and the government of Oman supports the development of the automobile industry. The regulatory frameworks of Oman are favorable for the sustainable development of Toyota. The policies of the government regarding the import of materials are quite flexible and facilitate the operation of Toyota in Oman.


The economic conditions of Oman are stable and facilitate the growth of all types of businesses (Baporikar, 2015). The country has been witnessing an increase in the Gross Domestic Product for the past few years. The gross domestic product per capita is also expanding which indicates the high spending power of the consumer. The trends of the annual growth rate of the country’s economy indicate stability.


The social fabric of Oman has the acceptance of innovative products. The social environment of Oman is favorable for Toyota. The increasing acceptance of people for the hybrid cars provides a favorable social environment for the development of Toyota in Oman (Greene & Ji, 2016). However, the increasing income inequality will limit the customer segments for Toyota.


Oman is a technologically advanced country. This is a favorable dimension for the growth of Toyota. The country has a vast range of technological services that can facilitate the manufacturing and distribution of automobiles across the country. The technology conditions of Oman favor the operation of the manufacturing and service units of Toyota (AlShamsi, 2018). The favorable technological conditions of Oman provide the opportunity to initiate the research and development process at the local level. This practice would enable the company to address the needs of local customers.


The legal conditions are favorable for the development of Toyota. The intellectual property laws are improving in Oman which indicates the protection of IP rights of Toyota. This reduces the concerns of the company regarding the infringement of IP rights. Oman is also improving the environmental laws that would increase the demand for environmentally friendly automobiles and force automobile manufacturers to minimize their carbon emissions.


Climate change is the key environmental factor that influences the business of Toyota in Oman. The alarming levels of global warming demand control of carbon emissions (Kasman & Duman, 2015). The regional government is formulating environmental laws to control the level of carbon emission. The company can utilize it as an opportunity for growth by designing fuel-efficient engines with minimum carbon emissions.


Porter’s five forces model

The threat of new entrants

The level of this force is low to moderate in the automobile industry of Oman. The product differentiation is high that increases the capital requirement and limits the entry of new firms into this industry (Obeng, et al., 2016). Customer loyalty is high and the companies have maximum access to the distribution channels. The barriers to entry are high in the automobile industry of Oman which creates an advantage for Toyota.

Threat of substitute

The threat of substitutes is low as the switching cost is high for the customers. The number of available substitutes is small and the ease of substitution is low. The low strength of this force enables Toyota to increase its market share.

Bargaining power of suppliers

The bargaining power of suppliers is high in the automobile industry of Oman. The concentration of suppliers is low as compared to the concentration of firms in the industry. The switching cost for automobile companies is high as compared to the switching cost for the suppliers (Ngo, et al., 2016). This situation forces Toyota to expand its business in Oman at the expense of high production costs.

Bargaining power of buyers

The bargaining power of customers is low in the automobile industry of Oman. There is a limited number of automobile companies that offer high-quality and innovative automobiles. The firm concentration is low as compared to the buyer concentration minimizes the ability of buyers to bargain the price of the product (Fabbri & Klapper, n.d.). Moreover, the switching cost is high for buyers which further reduces their bargaining power of buyers. This situation increases the ability of Toyota to maximize its profitability by adopting of premium-pricing strategy.

Industry rivalry

The industry rivalry is high in the automobile industry of Oman. The firm concentration is low and all companies hold significant market shares. The strong industry rivalry reduces the ability of Toyota to expand its market share in the automobile industry of Oman.

Consumer behavior analysis

The consumers of automobiles in Oman prefer sophisticated, luxury, economical, and fuel-efficient automobiles (Sadriwala, et al., 2017). Consumers seek innovative and valuable designs that satisfy their needs. Consumers are tech-savvy and enthusiastic about the innovative features in automobiles.

Market segmentation

The potential market segments would be identified by analyzing the current conditions of the automobile industry and the situation of Toyota. The objective of Toyota is to engage a maximum number of customers and increase its market share. Toyota designs automobiles that can cover the maximum consumer base. The company aims to design products that could engage a large number of the local population. The company has been designing automobiles for local customers according to their needs for many years and this strategy has enabled the company to maximize its customer base.

The psychographic, behavioral, and demographic segmentation will be used for the market segmentation of Toyota in Oman. On the basis of psychographic segmentation, the people seeking high value and high-quality automobiles are the primary target of Toyota. The price-conscious and luxury-seeking people are the secondary targets of Toyota. On the basis of behavioral segmentation, the people seeking fuel-efficient and environmentally friendly engines are the primary target market for Toyota Prius and tech-savvy people are the secondary target market. On the basis of demographic segmentation, the middle-income people belonging to the age group 25 to 35 are the primary target market, and high-income people belonging to the age group 35 to 60 are the secondary target market of Toyota.


Marketing objectives

The goal of this marketing plan is to increase the revenue of the company by 20 percent within three years. There are three objectives of this marketing plan to accomplish this goal. The first objective of marketing is to increase customer engagement by 50 percent by the end of the second year. The second objective is to increase the market share by 10 percent within three years. The third objective is to improve the brand name in the automobile industry of Oman and to improve customer satisfaction. The marketing strategies will be formulated in accordance with these marketing objectives.

Marketing mix strategy


Toyota Prius family offers a variety of fourth-generation subcompact fuel-efficient and environmentally friendly hybrid automobiles (Toyota, 2018). Toyota Prius family includes Prius Plug-in Hybrid, Prius Prime, Prius Eco, Prius v, and Prius C. The body style of the Prius family is a five-door fastback.


The price of a Toyota Prius 2018 in Oman ranges from 9300 Omani Rial to 10200 Omani Rial. The company will employ a medium-priced strategy for Toyota Prius. Many global giant automobile companies are offering hybrid cars at high prices. Furthermore, the acceptance of Toyota Prius among the consumers is low as compared to other products of Toyota. This strategy will enable the company to mass market the latest model of the Prius family.


Saud Bahwan Group will manage the distribution of Toyota Prius across the nation. The Group will identify the reliable retailers that will provide the access to Toyota Prius to the customers. The Group will also establish its distribution centers in remote areas for the placement of Toyota Prius.


The company will employ a mix of advertisement and promotion formulation of promotion strategy. The print and electronic media will be used for the advertisement. The local newspaper will be used as the print medium for advertisement and the mainstream social media platform Facebook will be employed for the communication of the company’s message to the public. The quarterly promotion sales will be held to attract more customers. The company will offer a discount of 10 percent on advance booking of Toyota Prius 2018. The company will also arrange public events for the launch of new models of the Prius family.

Evaluation and control

For the evaluation of the activities of the marketing plan, the price-performance, product performance, and promotion standards will be employed. Sales, revenue, and customer satisfaction will be the key performance indicators (Parmenter, 2015). These performance indicators are assessed quarterly to evaluate each activity of the marketing plan. The marketing team will manage the record of these indicators and compare them with the performance standards.


Cost for advertisement (print) 50000 Omani Rial
Cost for advertisement (electronic) 50000 Omani Rial
Cost for promotional events 200000 Omani Rial
Cost for placement strategy 10000 Omani Rial
Cost for product strategy 100000 Omani Rial


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