iQ Pan-European marketing presentation

Serge Gachot Product Communications, TME

iQ. Radical thinking.

iQ answers the needs of modern lifestyleBy 2015, 70% of the European population will live in urban areas

iQ answers the needs of progressive and modern lifestyle

iQ reflects Toyota’s environmental leadership

A+B segment is the biggest in EuropeSegment mix forecast ’08 – Total Europe PC market

A + B30%

24%10%

8%

15%

4%9%

LCV

SUV

MPV

Premium

C

Source: TME

Others

Opportunity for New Small Car segment definition

Individuality

Economic Style, Performance

All-round use

A-Segment

B-Segment

New Small Car Segment

Play or Playstation

Timberlanders

New customer segmentation with 11 groups falling into 3 broad categories

“Practical” dominated “Fashion” dominated “Fun” dominated

Big brothergeneration

Rock steady

Smart achievers

Living.com

Red Bullgeneration

New Yuppies

Easy riders

Because I’m worth it

Responsible socialites

Play or Playstation

Timberlanders

New customer segmentation with 11 groups falling into 3 broad categories

“Practical” dominated “Fashion” dominated “Fun” dominated

Big brothergeneration

Rock steady

Smart achievers

Living.com

Red Bullgeneration

New Yuppies

Easy riders

Because I’m worth it

Responsible socialites

iQ targets new-to-Toyota customersNew Yuppies:Expressing their individuality is keyStyle and design are their most important consideration

Responsible socialites:New experiences and challenges are prominent needsFashion-oriented and wanting to demonstrate good taste

iQ will contribute to Toyota primary brand enhancement

Quintessence

Halo effect

iQ to conquest customers that will reinforce

the positive and aspirational image of the brand

iQ is already perceived as a unique product proposition

i pour intelligence

Unconventional launch approachObjectives

Maximise the impact of iQ on the market

Sell 80,000 units annually

Build affinity amongst younger, urban social milieus

Unconventional launch approach

1.Product (launch edition)

2.Communications:

Innovative pre-launch activities

Media strategy

Financing scheme

2 grades, high equipment level from entry

Standard on iQ grade: Standard on iQ² grade:

Black and White as launch visual theme

At launchJan ‘09

2nd WaveMar ‘09

3rd WaveSep ‘09

Formula 1 grand prix in Spa

Innovative Pre-launch activities

Le Rendez-Vous Toyota Paris Motorshow 2008

Innovative Pre-launch activities

ITALYFRANCE

Image

Image

Innovative Pre-launch activities

UKGERMANY

Targeted media strategy

Focus on most relevant ‘touch points’ for iQ target

Digital

Press Outdoor

Unconventional creative campaignThemed around iQ’s Safety and Quality attributes

www.incredible –iQ.com/comingsoon www.incredible –iQ.com/safety

Innovative 3flex financing schemeHow does it work?

Customer pays the initial down payment & then decides every 12 months whether to:

1. Continue driving their iQ for a further year

2. Exchange for new or upgraded iQ

3. Return their iQ

iQ European sales target

Annual target of 80K units

Europe to represent 80% of total sales

Volume concentrated in MM5 (80%)

Volume concentrated in urban areas

Diesel: 7%

Petrol: 93%

Multidrive: 40%

Manual: 60%

Engine mix Transmission mix

iQ launch in 3 waves

1st WaveJan ‘09

2nd WaveMar ‘09

3rd WaveMay ‘09

UKFrance

GermanyItaly

SwitzerlandBelgiumSweden

NetherlandsGreeceIreland

AustriaPortugalPoland

DenmarkFinlandNorwayCroatiaCyprus

HungarySlovenia

Bosnia Herzegovina Iceland

Spain

Average CO2 emissions from Toyota & Lexus range

160

150

140

130

2004 2005 2006 2008 2009

Values based on EU 15C TTL Toyota & Lexus sales forecasts

CO

2 e

mis

sio

ns (

g/k

m)

1202007

170

iQ to lead Toyota Optimal Drive

iQ to lead Toyota product launch offensive

iQ first model out of 13 new launches

Six brand-new or next generation models

Seven major upgrades