Toyota Plots Brand Rehab

After turning in the worst performance in May sales among major automakers in the U.S. market, Toyota is launching a new marketing campaign (and charm offensive, led by Toyota president Akio Toyoda) to try to get American consumers thinking once again about what once made the Toyota brand so great.

Two years ago it was the world's best-selling automaker. Yesterday, Toyota reported that its U.S. sales in May improved by only 7%, while its competitors reported double-digit increases over their dismal May 2009 results.

Toyota execs had plenty of excuses – including the fact that they had a tough comparison with last year’s sales while domestic automakers were at their nadir a year ago. It's also hurting from consumers' fatigue with its massive program of zero-percent-interest loan incentives introduced earlier this year.

But it’s clear that many potential car buyers remain leery of Toyota’s products and promises in the wake of the company’s massive safety recalls early this year. Naturally, Toyota wants to shift the conversation to more positive messaging.

In an “expensive” new national advertising campaign that will include TV, print, digital and radio as well as outdoor, U.S. Toyota Division General Manager Bob Carter told automotive journalists, the brand will emphasize quality and safety and feature actual Toyota engineers – and customers.

“As with any promotion, its effectiveness does run its course,” Carter said about Toyota’s retail incentives. “That’s why you see us making a strategic shift into brand advertising … We’re changing up our marketing message to consumers. You will see us taking a very broad and very high-level brand and product approach – at the same time we’re being competitive in the market.”

Carter said that Toyota wants to “get back to selling the product and representing the brand.” And while Toyota has taken its lumps lately regarding product safety, he insisted that “one area consumers expect to hear from us about is safety and quality and dependability. That’s what we built our franchise on and what our core strengths are.”

So Toyota’s new campaign will include one ad promoting the Star Safety System, which combines five important accident-avoidance technologies – vehicle stability control, traction control, anti-lock brakes, electronic brake-force distribution, and braking assist – as standard equipment on Toyota vehicles.

Another ad will highlight the fact that, as Carter put it, Toyota is spending “$1 million an hour” on safety development and technology.

Would that Toyota was spending $1 million an hour on advertising – that would turn around the ad industry in a hurry!