CASE STUDY TOYOTA PRIUS: LEADING A WAVE OF HYBRIDS

2013
Royal University of Dhaka

CASE STUDY

TOYOTA PRIUS: LEADING A WAVE OF HYBRIDS

Course Title: Introduction to Marketing Prepared To: MD. Showkat Imran Lecturer, Royal University Of Dhaka Course Code: MKT 205

Zahid Hasan Sultana Rajia

1840 1318

Date: 27/06/2013
PREPARED BY ZAHID HASAN 04685414196

Royal University of Dhaka House#2, Road#10, Block-E, Banani, Dhaka

PRIUS: LEADING A WAVE OF HYBRIDS

PRIUS: LEADING A WAVE OF HYBRIDS

BACKGROUND OF THIS CASE

Prius leading a wave of hybrids to go before Prius Its a Hybrid car by TOYOTA. Prius is the brand or a car that TOYOTA has made a significant success in American market. It is a Hybrid Vehicle. Prius is the car with full hybrid technology. The word Hybrid simply means combinations of two or more things. An electric motor a combustion engine but in the case of TOYOTA: Hybrid means two sources of power. Principle behind Hybrid Synergy Drives is simple. In vehicles equipped with a conventional powertrain energy is wasted mainly due to continuous breaking whereas, Hybrid synergy drive recovers most of this energy, stores it in a battery and it is re-used at the most appropriate time. There are 3 phases in the history of Prius 1st generation hybrid Prius model, 2nd generation hybrid Prius model and 3rd generation hybrid Prius model.

SWOT ANALYSIS

Strengths
1) Worlds thirds large car manufacturing company 2) Reliable & High quality Image 3) First to introduce Hybrid Sedan 4) Extensive R & D 5) Most efficient car in US in 2008

Weakness
1) Distribution Network

Opportunity
1) Hybrid Technology 2) New Models 3) Online Activities

Threats
1) Strong Compotators 2) Public/Alternative Transportation 3) Petrol Price Increase

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PRIUS: LEADING A WAVE OF HYBRIDS

PRIUS: LEADING A WAVE OF HYBRIDS

Answer of the questionnaires

What micro environmental factors affected both the first generation and second generation models of the Toyota Prius? How well has Toyota dealt with these factors?

Answer:
First of all its very important to determine the Micro environment. Its mean the factors close to the industry that affect capability to serve its client the company, suppliers, marketing, intermediaries, customer markets, competitors and public. COMPANY: The first generation Prius in 2001 listed, because the body is small, the overall design of boring, mediocre sales. Three years later, Toyota Launched the second generation Prius, in addition to the horsepower has improved, the flow lines of its Asianstyle exterior design, as well as the installation of high-level contacts Control-screen, making the Prius a sales performance has improved dramatically. CUSTOMERS: Locking Early Adopters Toyota Prius is the first generation of target customers. This group has a strong interest for high-tech Fun, they buy a car, it also tries to modify its computer system for the Prius unexpectedly create more functionality. This opens Prius Visibility considerably helpful. After Toyota invested $ 40 million dollars more in ad spending, the second-generation Prius to a more A wide range of consumers forward, will focus on environmental awareness and energy efficiency (Fuel Efficiency) consumers together into Hybrid Car of the consumer market. COMPITITORS: U.S. auto market, the brand still invested Hybrid Car Honda Civic, Honda Accord, Ford Escape, Mercury Mariner, but only Honda Civic and Toyota Prius sales are steadily growing, others lackluster. May be because when consumers buy Hybrid Car, considerable emphasis energy efficiency, in order to determine Hybrid Car can really save for their own oil Money. INTERMEDIARIES: After the release of the second-generation Prius in the United States auto market to get a great response. Prius orders would be scheduled six months long, large brokers Part can be traded at a premium of about $ 5,000, its selling evident.

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PRIUS: LEADING A WAVE OF HYBRIDS

PRIUS: LEADING A WAVE OF HYBRIDS

Outline the major macro environmental factors- demographic, economic, natural, technological, and political and culture- that have affected Prius sales. How well has Toyota dealt with each of these factors?

Answer:
Demographic: As the aging population, older people are not buying cars when the highest priority to performance considerations, Prius although the use of many hightech devices, but different from the general complexity of vehicle control interface, simple and practical, streamlined design is still Makes driving easy to operate. Economic: The financial crisis and the impact of rising oil prices, consumers tend not to buy a car or buy a car, but the car will also pay special attention to the election fuel consumption and fuel efficiency performance. Prius itself feature is powered by gasoline-electric hybrid technology to save fuel consumption, ie The Prius pricing is more than the average height of the car, but after a period of use after the oil money savings are substantial, Prius also In constantly improved fuel efficiency improvement, cost-conscious consumers will find that after comparing Prius is a good choice; another Oil tram outside worrying repair costs, Prius also made five eighty thousand kilometers battery factory warranty commitments to remove consumer Whether there will be many in the maintenance cost concerns. Natural environment: Automotive energy consumption and emissions over the environment could afford, automobile emissions of carbon dioxide is causing The bulk of global warming factors, but also because of the butterfly effect is amplified, causing the greenhouse effect and climate change. Prius unique cited Engine operation mode, let pollution emissions per kilometer traveling far below the 2008 implementation of which began in Europe four environmental regulations, in section Energy and environmental performance, stand on the apex of the automotive industry; And because the engine and the motor can be started simultaneously, making the Prius Maximum torque output can reach 48.7 kg m level, the maximum output can reach 113 horsepower as much as such a performance, Let Prius getting rid of the environmentally-friendly vehicles must abandon the sake of environmental protection performance limitations; latest generation Prius is more from the solar cell Passenger compartment ventilation system, environmentally friendly vegetable foam seats, body panel and trim, inside and outside the car and floor
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PRIUS: LEADING A WAVE OF HYBRIDS

PRIUS: LEADING A WAVE OF HYBRIDS

the pedal cover, etc. are Is environmentally friendly material, while the new car in Japan have also adopted a regulation called Ingeo fiber manufacturing advanced environmental technology vehicles room carpet. Technical: Environmental awareness makes the Prius hybrid car, etc. have to be developed, in order to ready a considerable competitive potential, Prius continually improve their own performance and make improvements. Besides the Prius hybrid system is unfamiliar to many consumers while Novelty, so you can attract early adopters early (early adopters) and walking in the forefront of technology with people (techies). Political: U.S. federal government and many state governments in order to reward the people buying more hybrid vehicles and provide different tax cuts, Buy hybrid vehicles will not only tax cuts, some states even allow a single person driving a hybrid car traveling on the HOV control Lanes, part of the city but also for the hybrid car offers free parking, implementation of these policies provide more incentives for the Prius. Culture: Now companies in addition to facilitate the pursuit of a competitive advantage, but also on the social responsibility to be seen, Prius can be said that Toyota's efforts for environmental conservation, while many companies such as Timberland, Google, and Hyperion Solutions have to respond, willing to give employees buying hybrid car subsidy, regardless of the production is to support the hybrid vehicles will help to enhance the corporate image, and other companies encourage employees to buy hybrid vehicles in the same time, then why not help promote it in ? For example, the famous Canadian singer Steve Page Prius launched in Canada in the first time bought his first car, and hope that their actions can have a leading role to bring more people choose to use environmentally friendly vehicles.

ZAHID HASAN 04685414196

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PRIUS: LEADING A WAVE OF HYBRIDS

PRIUS: LEADING A WAVE OF HYBRIDS

Evaluate Toyotas marketing strategy so far. What has Toyota done well? How might it improve its strategy?

Answer:
Automobile industry in recent years due to mature markets of advanced countries, the social environment changes, generational change and values change and other factors, there diverse characteristics. When the industry generally believe that launched the "Green Car" in too early, Toyota presents "to catch up with the 21st century" the idea in 2001 to the U.S. market the world's first mass-produced hybrid car Prius, widely welcomed by technology enthusiasts the record success, and in 2004 launched the second generation of cars, improved horsepower, appearance, such as design, successfully expanded customer base. 2 The following analysis of STP Toyota Prius family launch strategy adopted: A. Market Segmentation: View from the car category, the market can be broken down cars to nearly 20 kinds of three to the consumer's point of view, consumer demand is broadly divided into categories: 1. Characterization of identity status and appearance-oriented: the brand's top luxury cars, sports cars 2. Performance-oriented: SUVs, trucks, vans, diesel trucks, campers 3. Economic considerations guide: Average four-door sedan (national car), fuelefficient cars, hybrid cars

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PRIUS: LEADING A WAVE OF HYBRIDS

PRIUS: LEADING A WAVE OF HYBRIDS

B. Market Targeting: Market segmentation characteristics (attractiveness) Analysis:

IDENTITY STATUS AND APPEARANCE-ORIENTED CHARACTERIZATION Product Features Against minority groups manufacturing high spending power, expensive, luxurious and equipped with low penetration. Price About $ 1.5 million to $ 20 million range Existing competitors Bentley, Cadillac, and there is an A double B said the Mercedes Benz, BMW and Audi; sports car, there are Porsche, Ferrari, Lamborghini and Aston Martin, etc. Toyota has launched Lexus cars

PERFORMANCE GUIDE

ECONOMIC CONSIDERATIONS GUIDE With professional Large number of uses, types and people buying, selling functional price is low, diversification, equipment ordinary, the price is also high penetration and widely covered more for mini cars, small cars, or in the car About $ 400000-$ About $ 600,000 to 8000000 ranging 800,000 range Ford Pronto, Ford Focus, Nissan Titan, Jeep Mitsubishi Colt PLUS, Wrangler, Honda Honda Fit, etc. CR-V and Renault Modus, etc.

RAV4, Yaris

Wish, Corolla, Altis

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PRIUS: LEADING A WAVE OF HYBRIDS

PRIUS: LEADING A WAVE OF HYBRIDS

C. Market Positioning The following tables analyze Toyota strategy to advantages and future improvements of the Department:
Advantage Product 1. Hybrid, fuel-efficient and environmentally friendly 2. Equipped with a basic but complete Can improve the Department 1. Continued to improve fuel efficiency and maintain a leading position in technology industry 2. Cooperation with other electronics manufacturers to increase vehicle equipment 1. After enhancing fuel efficiency, but also improve the product pricing 2. But stressed that maintaining price good quality can save most of the maintenance costs for consumers 1. With the gradual aging of the population, in order to "leave a good environment for future generations," to appeal to the retired population marketing; marketing comply with the aging population or usage design.

price

1. The price is affordable to the general public, and some dealers even sell can improve pricing 2. Environmentally conscious large enterprises also purchase grants employees

promotion

1. Start a new technology for the favorite selling access to the majority ethnic group response

place Toyota in the Japanese market was launched in 1997, then in 2001 sold more than 40 countries and regions around the world, and is currently the largest market is North America and Japan, in the United States until early 2009 sold a total of more than 600,000.

1. Dealer or expand into new markets in emerging countries to integrate production, such as China, India 2. Contract with the dealer, the upstream and downstream business partnership

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PRIUS: LEADING A WAVE OF HYBRIDS

PRIUS: LEADING A WAVE OF HYBRIDS

GMs marketing director for new ventures, Ken Stewart, says If you want to get a lot of hybrids on the road, you put them in vehicles that people are buying now. This seems to summarize the U.S. auto makers approach to hybrids. Would you agree with Mr. Stewart? Why or why not?

Answer:
I believe I would agree with Mr. Stewart. It is a fact that people are buying cars because they like them or need them, and not necessarily because of gas efficiency. Now, if you add the gas efficiency factor it may motivate the consumers. In my opinion, the Prius is one of the ugliest cars that I have ever seen. Would I buy it based on the fact that will save me on gas? I wouldn't buy it, not only it's ugly, but also it does not serve to my purposes and tastes. Now, if we were talking about an SUV such as the GM Tahoe, I would probably be interested. Not only serves as an SUV, it also looks good and helps me save gas and to contribute with the environment. The Prius, although very economic on gas, may not be the best car for a family of six. Therefore, having other options that are based on the same concept could be very beneficial for Toyota, or any automaker out there.

SOLVED

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