Prius Account Planning Project


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Prius Account Planning Project

  1. 1. + ToyotaBerryBee Prius Agency Kathryn Drake Amy Ewing April 27, 2010 Kim Grams Account Beatriz Mendoza Planning Corey Zoller
  2. 2. + 2 The BerryBee Agency: Corey Zoller Kim Grams Kathryn Drake Beatriz Mendoza Amy Ewing
  3. 3. + 3 Table of Contents  Secondary Report 4-25  Survey Report 26-54  Qualitative Report 55-90  Creative Brief 91-93
  4. 4. + 4 Secondary Report
  5. 5. + 5 Part 1: The “Three C” Situation Analysis  The Company/Brand  History of the company  The Toyota Prius is a full hybrid electric mid-size car developed and manufactured by the Toyota Motor Corporation. The Prius is the most fuel efficient gas car currently sold in the U.S. according to the United States Environmental Protection Agency. It first went on sale in Japan in 1997, making it the first mass-produced hybrid vehicle. It was subsequently introduced worldwide in 2001. The Prius is sold in more than 40 countries and regions, with its largest markets being those of Japan and North America. The vehicle was named "Prius", the Latin word for "prior" or "before"
  6. 6. +  Company Sales Trends 6 Annual sales worldwide and by region[78] (in thousands) North Year World Japan U.S.[79] Europe Other America 1997 0.3 0.3         1998 17.7 17.7         1999 15.2 15.2         2000 19.5 12.5 5.8 5.6 0.7 0.01 2001 29.0 11.0 16.0 15.6 2.3 0.2 2002 28.1 6.7 20.3 20.1 0.8 0.2 2003 43.2 17.0 24.9 24.6 0.9 0.4 2004 125.7 59.8 55.9 54.0 8.1 1.9 2005 175.2 43.7 109.9 107.9 18.8 2.9 2006 185.6 48.6 109.0 107.0 22.8 5.3 2007 281.3 58.3 183.8 181.2 32.2 7.0 2008   73.1[80]   158.9 2009   208.9[80]   139.7 [81]
  7. 7. +  The 4 P’s of marketing for this brand 7  Products  Full Hybrid Electric Mid-Size Car  Place  Distributed in Japan   Promotion    PR   for-2010-89249.aspx  Price  $21,000- $27,270 Sources: blue links listed above, and
  8. 8. + 8 The Consumer of the Brand  Demographics of current brand users − Women, ages 45-64, Married (MRI) − The average age of a hybrid driver is 50, compared to the average age of all car buyers at 40. ( − Income: $100,000+ (MRI) − 71 Percent of Prius owners reported in a survey from Topline Strategy Group that they earn more than $100,000. This is more than twice the national average. − Home value: $500,000+ (MRI) − Education: Post College Degree (MRI) − Hybrid owners are more than twice as likely to have a college degree as all US adults. -Occupation: Professional or Management, Business, and Finance Occupations (MRI) − Geography: County Size A (MRI) − According to a JD Power study, consumers who are willing to pay more for a hybrid vehicle are concentrated the most in the West and the least in the Midwest. − The top markets of hybrid ownership are Tucson, San Francisco, Washington DC, and Las Vegas. Households in these markets are twice as likely to own a hybrid than households nationwide. (Scarborough Research) − California is consistently ahead of other states in terms of new vehicle registrations for hybrids. ( −    Race: White or Asian (MRI)
  9. 9. +  Psychographics 9 −    Attitude: •    JD Power found that hybrid owners are “78% more likely than the general population to be highly creative.” •    Hybrid owners are generally considered more open- minded and spontaneous than the general population. (JD Power) −    Lifestyle: •    Hybrid owners are “active, engaged in outdoor activities, and health-conscious.” (Scarborough) •    33% of hybrid owners are members of a health club, nearly twice as many as the general population. (Scarborough) •    Hybrid owners are twice as likely to go skiing, hiking, or practice yoga. ( Some other activities they participate in more than the average person include biking, snow skiing, and golfing. •    They consume more organic food than the average person. ( −    Beliefs: •    38% of hybrid owners identify themselves as Democrats and 20% of them report to be Independent but feel closer to Democrat. •    81% of hybrid owners “always” vote in the presidential elections, 10% more than the general population. (Scarborough)
  10. 10. +  Consumer relationship with brand 10 -According to Consumer Reports’ 2010 Car Brands Perception Study, consumers rated Toyota as the top environmentally friendly/green car brand. Toyota also earned the top brand perception score, which is calculated by the scores from all categories (safety, quality, value, performance, design/style, technology/innovation, and environmentally friendly/green.)    -Prius owners love to tell others of their experiences with the brand and encourage others to purchase the car. They are “proud advocates” of their cars. (JD Power) -In JD Power’s 2009 owner satisfaction survey, 84.3% of owners reported being satisfied with the Prius, taking 2nd place among all cars. -Consumers who drive a Prius likely do so because when someone sees a Prius, they know that it is a hybrid. Unlike hybrid models by Ford or Honda, Toyota built the Prius from the ground up and didn’t simply use an existing model. (New York Times)
  11. 11. + The Category  11  History of the category  In 1901, Ferdinand Porsche designed one of the earliest known gasoline electric cars, which he called the Mixte. This design featured a gasoline engine, as well as an electric engine used to give the car a little extra power. Although the technology of the hybrid electric vehicles (HEVs) of today are more advanced, many of the characteristics of the Mixte’s hybrid engine are still applied to this day (, 2010).  In 1915, Woods Motor Vehicle created the Dual Power hybrid vehicle, which used an electric motor to power the vehicle at low speeds, and a gasoline engine to power the vehicle into higher speeds up to 55 mph. 600 Dual Power vehicles were created before the company ceased production in 1918 (, 2010).  The 1960’s and 70’s experienced a technological advance in the development of HEVs with the help of Victor Wouk, commonly referred to as the “Godfather of the Hybrid.” During this period, Wouk designed numerous HEVs, significantly a hybrid version of GM’s Buik Skylark in 1976 (Bradley Berman, New York Times, 2010).  In 1978, David Arthurs developed the regenerative braking system, a system on which most modern hybrids rely, in his conversion of an Opel (a German subsidiary of GM) GT. In this system of braking, the electric motor slows the car while it collects the power and uses it to recharge the electric batteries (, 2010).  In 1989, Audi created the Audi Duo, a plug-in electric hybrid designed for engine use in the country and electric use in the city. This model proved inefficient and only ten vehicles were said to have been produced. The Audi Duo II was then designed in 1991, but it received little success, as well (, 2010).
  12. 12. + 12  In 1993, President Clinton created the Partnership for a New Generation of Vehicles, a government program designed to fuel the mass production of alternative fuel vehicles. Among the partners in this group were Chrysler, Ford and GM. This program was eventually replaced by President Bush’s FreedomCAR initiative in 2001 (Bradley Berman, New York Times, 2010).  The modern history of HEVs began in the late 1990’s with Toyota and Honda leading the pack. The Toyota Prius and Honda Insight, which are still popular models to this day, were two of the first mainstream HEVs. The Toyota Prius was released in 1997 and was the first mass-produced HEV, while the Honda Insight was released in 1999 (, 2010).  In 1997, Audi found its first success in the category of HEVs with the Audi Duo III, making it the first European hybrid ever put into production. Its success was slight, however, as its steep price made it unpopular. Only 60 vehicles of this model were produced (, 2010).  In 2004, the Ford released the first hybrid electric SUV in the Escape. Toyota answered one year later with a hybrid version of its Highlander SUV (, 2010).  In 2006, Tesla Motors unveiled its Tesla Roadster, the first and only highway-capable electric vehicle for sale today (, 2010).
  13. 13. + Overall category trends  13  Historical Size of Category  To the right is a chart consisting of data compiled by Yuki Tanaka and Yukio Shigeta of the Nomura Research Institute, taken from their article “Upcoming Advances in the Hybrid Vehicle Market,” issue No. 114 of the NRI Papers, published Feb. 1, 2007. From the chart we can see a gradual increase of hybrid units sold globally from 1997 through 2003. From 2003 to 2005 a rapid increase occurred. According to Tanaka and Shigeta, during this period the U.S. accounts for 70% of sales, Japan 20% and Europe 8%.
  14. 14. + 14 Current Size of Category  According to the Electric Drive Transportation Association (, 2010), 246,642 hybrid units were sold in the US in 330,000 2006, 324,318 units were sold in 2007, 315,688 in 2008 and 290,237 in 2009. 247,500 As apparent in the following chart, a slight decrease in HEVs sold over the 165,000 past few years has occurred in the US. Units 82,500  Registrations of hybrid vehicles have 0 increased, however, with 598,739 registered in 2009 (, 2006 2007 2008 2009 2010) compared to 350,289 registrations in 2007 (The Associated Press, 2010,
  15. 15. +The 4 P’s of marketing for direct competitors• 15 Products  The top five best-selling hybrid models of 2009 were the Toyota Prius (139,682 units), Toyota Camry Hybrid (22,887 units), Honda Insight (20,572 units), Ford Fusion Hybrid (15,554 units) and Honda Civic Hybrid (15,119 units) (Jeff Wysaski,, 2010).  The top five best-selling hybrid SUV models of 2009 were the Ford Escape (12,009 units), Lexus RX400h (10,089 units), Toyota Highlander (8,635 units), Chevy Tahoe (2,466) and Saturn Vue (2,280 units) (, 2009).  The following graph, provided by, 2010, compares the Prius with four of the top hybrid models by showing the U.S. hybrid market historical sales from 1999 through 2009.
  16. 16. +  Place 16  Globally, the U.S. led as the country with the most hybrid vehicle registrations in 2009 with 265,501 of the 598,739 total registrations. Japan came in a close second with 249,619 registrations. Other countries included Canada, the Netherlands, and the U.K. with less than 17,000 each (, 2010).  In the U.S., the top five cities as markets for HEVs in 2009 from first to fifth are Los Angeles, New York, San Francisco, Washington, D.C., and Chicago. The top five states with the highest hybrid sales in 2009 are California, New York, Florida, Texas and New Jersey (, 2010).
  17. 17. + 17 Promotion  One of the Prius’ biggest competitors, the Honda Insight, released its 2010 model with an ad campaign deeming it “the hybrid for everyone” because it is “designed and priced for us all.” With its release in April 2009, the 2010 Honda Insight is the least expensive new hybrid available in the U.S (Honda Motor Co., Ltd, 2009,  Promoting themselves as luxury hybrids are many of the Lexus, Mercedes and BMW models. For example, an advertisement for the Lexus LS600h promotes the technology of the hybrid, while including the tag “the pursuit of perfection.”  As the first highway-compatible hybrid vehicle, the Tesla Roadster is promoting its speed as well as its speed, “0 – 60 in 3.9 seconds,” combined with its environmental benefits in one of its slogans, “performance with a clean conscience” (, 2010).
  18. 18. + 18  Price  In April 2009, Honda released the 2010 Honda Insight as the least expensive new hybrid in the U.S., available for under $20,000 (Honda Motor Co., Ltd., 2009, Of the other top-selling hybrids, the Toyota Camry Hybrid has a base price of about $26,000, the Ford Fusion Hybrid has a base price of $28,000 and the Honda Civic Hybrid starts at $24,000 (, 2010).
  19. 19. + 19 Part 2: Competitive Creative Analysis Top Competitors  Source: hybrid-cars  Ford  GM  Nissan
  20. 20. + 20 Nissan Altima    This ad is for the Nissan Altima  The “Quality You Can Love”  Hybrid and is displayed on the commercial speaks to people who official Nissan website’s homepage. “Love” and care for their cars and This ad is definitely geared towards pokes fun at those who care freak those who place importance on the over minor scratches/hits given to quality of the car above everything their cars. The goal of this ad is to else. The JD Power and Associates show that the Nissan Altima has been Award is prestigious and the mention put through over 5,000 tests and the of the car being awarded this speaks quality assurance is backed by the very highly of the car. The ad award for being ranked the highest mentions that it is the highest ranked in quality among midsized cars.  car in quality which is places it well Again, Nissan goes with an “expert against the Toyota Prius. The expert opinion” approach when advertising opinion of JD Power and Associates is the car when mentioning the tests the the main focus of the persuasive/ car has been put through and the JD creative strategy in this particular ad. Power and Associates Award it received.
  21. 21. + 21 Honda Insight This ad speaks to any potential consumer thus the slogan “Designed and Priced for Us All” and tag line “The Hybrid for Everyone”. It can be found appealing and entertaining because the focus of the commercial is on the price and versatility of the car and the layout of the commercial is very modern. It says the price is affordable so it’s attainable by many and its storage makes it convenient for many different types of cargo and the mpg is also easy on the wallet. In the commercial you can see somewhat of a demonstration by the different types of cargo being loaded/unloaded and the “reason why” method is also definitely used because of the narrator’s persuasive script.
  22. 22. + 22 Honda Civic The “Grooves” commercial speaks to the modern day, smart consumer - those who have an interest in art, science and the environment.  The goal of this ad is to appeal to the artsy/smart audience and entertain them with a cute, creative twist on car science. This ad had a demonstration but it definitely focused more on image and made the car seem like a smart/cool thing to invest in.  
  23. 23. + 23 Ford Fusion Hybrid “We Speak Car” ad on YouTube: v=TIAclinwG6Y The commercial for the 2010 Ford Fusion Hybrid is talking to consumers who may already have a brand relationship with Ford, and know that Ford “Speaks Car”. The commercial is letting this audience know that they also “Speak Hybrid,” meaning they will get the same Ford quality in a hybrid vehicle. The ad establishes the Fusion Hybrid as “the most fuel-efficient mid-size sedan in America,” and directly competes with other hybrid vehicles with claims such as “an EPA estimated 41 mpg city” and “700 miles on a single tank” – clearly using “Reason-Why” advertising, presenting facts and figures telling the audience the reason why the Fusion Hybrid is the most fuel-efficient American automobile in its class.
  24. 24. + 24 Ford Escape Hybrid “Kermit Says Its Easy Being Green” ad on Google Videos: http:// The Kermit the Frog ad for Ford Escape Hybrid appeals to a broad audience on a broad level. In the end, the ad’s targeted audience is eco-friendly or environmentally conscious consumers. In the beginning, the viewer isn’t sure what kind of advertisement this is or for what brand. We follow Kermit on a path while he sings “It’s Not Easy Being Green”. He eventually gets to the Escape Hybrid and declares “Hm.. I guess it is easy being green!” If the Ford Escape can be green, so can Kermit! The goal of this ad is to present the traditional Escape in a new and more environmental “green” light, and in the last few seconds of the commercial we learn the new Escape Hybrid has an estimated 36 miles per gallon. The persuasive creative strategy is obviously “Spokesperson,” employing one of America’s most beloved (and Jim Henson’s most famous) Muppet.
  25. 25. Part 3: The SWOT Analysis+ 25 Strengths Weaknesses-With new environmental knowledge, more and more -The initial cost of the vehicle may not allow you topeople are moving toward hybrid cars break even, even with the savings on gas-Prius is "eco-friendly" car -Long- distance commuters see less savings-Many celebrities try to make a statement by driving a -It is not as fun to drive for the accelerator is indeedPrius, influencing others to do the same slower than a conventional car-Competitively priced with other hybrids -The simple anatomy of a hybrid car is complex, hard-First Hybrid car to be introduced, many customers to understand and explain, making the pitch to aare loyal to the brand. consumer difficult Threats Opportunities-Recent plan to recall 311,000 of the vehicles due to -Continued popularity of “green” movementcomplaints about break performance could have -High gasoline pricessignificant effect on the mindset of potential buyers in the -Large number of celebrities who drive a Priusfuture if damage control is not effectively implemented -Those who are typically consumers of hybrid vehiclesfrom a public relations standpoint. have higher incomes than most people, so they have-Negativity on the Prius model comes almost instantly after the money available to buy a new caranother major crisis for Toyota, involving a halt of sales ofnearly half of its models in the U.S. due to a faultyaccelerator problem that has been causing fatal accidents-January 7, 2010 -- shares of Toyota were down more than7% while Ford was up 2%, which may almost certainlybenefit the competition-Affordability of the 2010 Honda Insight, released in 2009 asthe least expensive new hybrid in the U.S., possiblyattracting money-savvy customers in a struggling economy
  26. 26. + 26 Survey Report
  27. 27. + 27 Research Objectives  Toyota introduced the Prius product in 2001. The purpose of this research is  To gain consumer insights that will drive the advertising strategy for the Prius.  To supplement previous secondary research which included a Company, Consumer, and Competition situation analysis, a competitive creative analysis and SWOT analysis. This secondary research was completed on February 9, 2010.  To inform the next stage of research. (Sentence listing methods of forthcoming qualitative research (focus groups, interviews, observation)).
  28. 28. + 28 Methodology  We used the following data collection methods  Created the survey using Survey Methods  Posted the survey link on Facebook  Campus intercepts at Texas State University  Personal intercepts at Whole Foods and SXSW  Data collection: March 12, 2010-March 21, 2010  Completed responses=106
  29. 29. + 29 Methodology  Sampling Method  The convenience sample is only representative of a small, select portion of the population, where as a random sample takes the entire population into account and draws randomly from it. The convenience sample does not completely represent the overall population.  It differs from an ideal sample because it wasn’t random. Most of the respondents reside in the Austin/San Marcos area. People that we did not reach in this area were unrepresented. Based on the data collection methods that we chose, it is not certain that all the respondents were true in the way that they responded.  Our finding were used for exploratory research.
  30. 30. + 30 Respondent Qualifications  We are conducting a national sample.  We are sampling individuals.  Individuals must own a Prius, or must be in the market for a hybrid sedan within the next year.  We plan to survey people with the following qualifications:  Ages 21-50  Gender: Male and Female  Occupation: Professionals with some college or college degree  Lifecycle: Young singles, young married adults  Living situation: Single family homes with kids or without kids
  31. 31. + 31 Actual Respondent Profile  Austin/San Marcos area  Sampled individuals  Individuals either owned a Prius, or are in the market for a hybrid sedan within the next year.  Age: 22-40  Gender: 56% Male, 44% Female Prius Owners 42%  Income:  College students and prospective buyers< Prospective Buyers $10,000 58%  Large majority was between $60,000- $80,000 (Mostly owners)  Prius owners:44  Prospective buyers: 62  Total Surveyed: 106
  32. 32. + 32 Collected Data  Question 1  Screening question Do you own a Prius?  Thirty-five percent of the respondents own a Prius. 36% 64% Yes
  33. 33. + 33 Collected Data Rate the importance of each of the following when it comes to your Prius. On the scale below, please rank the following items 30 accordingly based on their importance to you. Question 2  Owner Most respondents (66%) felt that 23 fuel-efficiency is “extremely important” as well as safety ( 58%) when it comes to their Prius. 15 Few respondents (2%) felt that fuel-efficiency was “not important.” Few respondents also felt that price, appearance, reputation, and safety were “not 8 important.” 0 Fuel-Efficiency Price Appearance Reputation Safety Extremely Important Very Important Neutral Not Important Not at all Important
  34. 34. + 34 Collected Data Question 3  Owner Overall, how satisfied are you with your Prius? 30 The majority of respondents (59%) were “satisfied” with their Prius. The “extremely satisfied” category was the second highest chosen with 27% 23 of respondents. Few of the respondents (2%) were 15 “dissatisfied” or “extremely dissatisfied” with their Prius. 8 0 Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied
  35. 35. + 35 Collected Data What is it about your Prius that you enjoy the least? On the scale below please rank the following items accordingly based on your satisfaction with each. 25  Question 4  Owner 20  The majority of respondents were neutral in all of the categories, except for “appearance” where most respondents (45%) were 15 “satisfied.”  The fewest amount of respondents 10 were “extremely satisfied” within each category. 5 0 Lack of Horsepower Appearance Handling of the Car Price Extremely Dissatisfied Dissatisfied Neutral Satisfied Extremely Satisfied
  36. 36. + 36 Collected Data Does the current Toyota brake recall affect the Question 5 way you feel toward your car?  Owner The majority of respondents (32%) 15 replied “not much” when it comes to being affected by the brake recall. 11 The second highest category of respondents (27%) said they were “slightly” affected. 8 The same amount of respondents (16%) were “definitely affected,” and felt “neutral” toward the brake 4 recall. Few respondents said they were “not0 at all “affected.” Definately yes Slightly Neutral Not Much Not at all
  37. 37. + 37 Collected Data  Question 6  Screening Do you plan to purchase a hybrid sedan in the next year?  The majority of respondents plan to purchase a hybrid sedan within the next year, as shown by 71 percent. 29% 71% Yes
  38. 38. + 38 Collected Data Question 7 What are you concerned with when purchasing a hybrid vehicle? 40 On the scale below, rate the following items accordingly based on  Prospective buyer their importance to you When it came to fuel- efficiency, price, and safety, the majority of respondents 30 felt these benefits were “extremely important” when it came to purchasing a Extremely Important hybrid sedan. Very Important 20 Neutral When it came to appearance Not Important and the reputation of the car, Not at all Important the majority of respondents (42%-44%) were “neutral.” 10 In every category, the fewest amount of respondents felt like the benefit was “not 0 important.” Fuel-Efficiency Price AppearanceReputation Safety
  39. 39. + 39 Collected Data What brand comes to mind when you think of hybrid sedans? 2%2% 2%  Question 8 3% 5%  Prospective buyer  The majority of respondents (53%) said that Toyota came to mind first when thinking of hybrid sedans.  The least amount of respondent chose Hyundai, 21% Mercedes, and Lexus as the brand that came to their mind when thinking of hybrid sedans. 53% 13% Toyota Honda Ford Kia Hyundai Mercedes Lexus Mazda Other
  40. 40. + 40 Collected Data How much will the recent brake recall on certain Toyota models Question 9 affect your purchasing decision?  Prospective buyer 30 The majority of respondents (40%) said that the recent Toyota brake recall “definitely 23 will” affect their purchasing decision. The fewest amount of 15 respondents (8%) said that the recent Toyota brake recall will “definitely not” affect their purchasing decision. 8 The remainder of respondent choices fell in the middle. “Slightly” (18%), “not 0 sure” (21%), and “probably Definately will Slightly Not sure Probably not Definately not not” (13%).
  41. 41. + 41 Collected Data Question 10   Owner & prospective buyer How concerned are you for the environment? 50  Most of the overall respondents (45%) said that they “very much” care for the environment. 38  Few respondents fell below 25 neutral on their concerns for the environment. 13 0 5 (Very Much) 4 3 (Neutral) 2 1 (Not at All) Overall Prius Owners Prospective Buyers
  42. 42. + 42 Collected Data Do Toyota’s advertising efforts (in regard to the brake recall) affect your impression of the company?  Question 11  Owner & prospective buyer 50  The majority of the respondent impressions (40%) were neutrally 38 affected in regard to the advertising efforts of Toyota post- brake recall. 25 The fewest amount of respondents 13  (7%) were “very much” affected by the advertising efforts. 0 5 (Very Much) 4 3 (Neutral) 2 1 (Not at All)
  43. 43. + 43 Collected Data Question 12 How many miles do you commute per weekday?  Owner & prospective buyer 50 The majority of respondents (32%)said they commute 10-30 miles 38 per weekday. 25 The fewest amount of respondents (10%) said they commute 51-70 miles per weekday. 13 0 Less than 10 10-30 31-50 51-70 More than 71 Overall Prius Owners Prospective Buyers
  44. 44. + 44 Collected Data Gender  Question 13  Demographic  The majority of respondents were male. 44% 56% Male Female
  45. 45. + 45 Collected Data  Question 14  Demographic Age 100 96  The most represented age group was 31-40 at 32%. 75  The least represented age group were people over 60 at 4%. 53 50 25 25 12 12 7 3 0 Under 21 22-25 26-30 31-40 41-50 51-60 Over 60
  46. 46. + 46 Collected Data  Question 15 Annual Income  Demographic 20  The majority of respondents (18%) made less than $10,000 15 annually, slightly ahead of those that made $70,000-$79,999 annually. 10  The fewest amount of respondents made $90,000-$99,999 or 5 $150,000+; both at 2%. 0
  47. 47. + 47 Conclusion •Current owners of the Toyota Prius have admitted to buying the car for its safety and fuel-efficiency. The “lack of horsepower” answer choice was the respondent’s least favorite feature, although it did not have anywhere near the same amount of votes as “neutral”. Most current owners are satisfied with the overall performance of their car. Obviously, this consumer is one who continues to look for a car that will satisfy their fuel-efficiency and safety needs. Toyota does not have to worry about being overlooked by consumers when shopping for a hybrid sedan, as it is certainly the first brand that comes to their minds. Although Toyota’s advertising efforts are aiding in the consumer’s overall impression of the company, the effect it is having on the consumer’s decision to buy a Toyota car is problematic. The brake recall is, so far, playing a vital role in the decisions of those who plan to purchase a hybrid sedan. Our information paints a picture of a typical consumer in our target market: an eco-conscious, 31-40 year old commuter who drives anywhere between 10-50 miles per day. This person cares for their environment a great deal and takes safety ratings and fuel-efficiency into consideration most when buying a hybrid vehicle. The amount of time spent in their car is definitely an area we must look into more in depth.
  48. 48. + 48 Further Research We would like to explore more about our target market and their psychographics in order to reach them more effectively through advertising. We will pose more open-ended questions regarding why they enjoy or dislike certain features/benefits of the Toyota Prius. We will ask what Toyota could be doing to better improve their brand image regarding the recent brake recall. A more in depth list of demographic questions will help us further segment the market. Geography, Education, Marital Status, Race, Religion and other demographics are left untouched in our condensed survey. By using the VALS system, we could further segment the consumer marketplace on the basis of the personality traits that drive consumer behavior. With this information, our team could develop and execute more effective strategies.
  49. 49. + 49 Survey ✦ 1. Do you own a Toyota Prius? ✦ Yes- continue to question 2 ✦ No- continue to question 6 ✦ 2. Rate the importance of each of the following when it comes to your Prius. On a scale of 1-5, please rank the following items accordingly. ✦ 1 (Not very important) 2 3 4 5 (Very important) ✦ Fuel-Efficiency ✦ Price ✦ Appearance ✦ Reputation of the car ✦ Safety ✦ 3. Overall, how satisfied are you with your Prius? (Circle one) ✦ 1(Not at all) 2 3 4 5 (Very much)
  50. 50. + 50 Survey ✦ 4. What is it about your Prius that you enjoy the least? On a scale of 1-5, please rank the following items accordingly. ✦ 1 (Extremely satisfied) 2 3 4 5 (Extremely dissatisfied) ✦ Lack of horsepower ✦ Outer appearance ✦ Handling of the car ✦ Price ✦ 5. Does the current Toyota brake recall affect the way you feel toward your car? (Circle one) ✦ 1 (Not at all) 2 3 4 5 (Very much) ✦ 6. Do you plan to buy a hybrid sedan in the next year? ✦ Yes- continue with question 7 ✦ No- Skip to question 10
  51. 51. + 51 Survey ✦ 7. What are you concerned with when purchasing a hybrid vehicle? On a scale of 1-5, rate the following items accordingly. ✦ 1 (Not at all concerned) 2 3 4 5 (Very much concerned) ✦ Fuel-Efficiency ✦ Price ✦ Appearance ✦ Reputation of the car ✦ Safety ✦ 8. Which maker comes to mind when thinking of Hybrid Sedans? ✦ Toyota ✦ Honda ✦ Ford ✦ Kia ✦ Hyundai ✦ Mercedes ✦ Lexus ✦ Mazda ✦ Other (Please Specify) __________
  52. 52. + 52 Survey ✦ 9. How much will the recent brake recall on certain Toyota models affect your purchasing decision? (Circle one.) ✦ 1 (Not at all) 2 3 4 5 (Very much) ✦ 10. How much do you care for the environment? (Circle one) ✦ 1 (Not at all) 2 3 4 5 (Very much) ✦ 11. Do Toyota’s advertising efforts (in regard to the brake recall) affect your impression of the company? (Circle one) ✦ 1 (Not at all) 2 3 4 5 (Very much) ✦ 12. How many miles do you commute per day during the week? ✦ Less than 10 ✦ 10-30 ✦ 31-50 ✦ 51-70 ✦ More than 71
  53. 53. + 53 Survey ✦ 13. Gender: ✦ Male ✦ Female ✦ 14. Age: ✦ 18-21 yrs old ✦ 22-25 yrs old ✦ 26-30 yrs old ✦ 31-40 yrs old ✦ 41-50 ✦ 51-60 ✦ 61 or over
  54. 54. + 54 Survey ✦ 15. Annual Income: ✦ Less than 10,000 ✦ $10,000-$19,999 ✦ $20,000- $29,999 ✦ $30,000- $39,999 ✦ $40,000- $49,999 ✦ $50,000- $59,999 ✦ $60,000- $69,999 ✦ $70,000- $79,999 ✦ $80,000- $89,999 ✦ $90,000- $99,999 ✦ $100,000- $149,999
  55. 55. + 55 Qualitative Report
  56. 56. + 56 Research Objectives  “Toyota is currently experiencing a major PR disaster with its recent product recall. To maintain brand loyalty and increase sales of 2010 models during this crisis, the Toyota Prius is launching an advertising campaign in May 2010.”  To gain consumer insights that will drive the advertising strategy for the Prius.  To supplement previous secondary research and survey research conducted for the Toyota Prius.  To explore:  Find out more detailed information about the people whom we wish to speak to (lifestyle, life stage, education, marital status, race, region) by conducting one-on-one interviews so that we can reach them more effectively.  Uncover how Toyota can improve their reputation through the eyes of the people we wish to speak to.  Discover in further detail what features and benefits of the Prius that consumers like and dislike, and why.  Find out in what ways the people we want to learn about are eco-conscious so that we can find effective ways to target them.
  57. 57. + 57 Methodology We conducted 5 one-on-one interviews 4 in person 1 via Skype 15-30 minute interviews Research was conducted in the San Marcos/Austin area in the homes of the interviewers, and also the homes of the interviewee’s April 8th-April 10th, 2pm-8pm Who interviewed who: •Kim, Beatriz, and Corey (Perspective Buyers) •Kathryn and Amy (Prius Owners) Recorded via Skype and digital camera Brand Personification- to give insight on the interviewee’s perception of car brands. We gave our interviewees a list of car brands and asked them to describe each brand as either a member of a family or a person at a party.
  58. 58. + 58 Interview  Prius Owners:  2 owners interviewed  Ages 21-50  Male and Female  Must reside in the United States  Must own a Toyota Prius  Lifestyle: Eco-conscious commuters with a set, weekly schedule or routine drive  Life stage: People about to start or are established in their careers  Occupation: Professionals with some college or college degree  Lifecycle: Young singles, young married adults  Living situation: Single family homes, or apartment dwellers with kids or without kids
  59. 59. + 59 Interview  Hybrid Sedan Buyer:  3 prospective buyers interviewed  Ages 21-50  Male and Female  Must reside in the United States  Must be in the market for a hybrid sedan  Lifestyle: Eco-conscious commuters with a set, weekly schedule or routine drive  Life stage: People about to start or are established in their careers  Occupation: Professionals with some college or college degree  Lifecycle: Young singles, young married adults  Living situation: Single family homes, or apartment dwellers with kids or without kids
  60. 60. + 60 Who We Talked To  All participants were between 22-45. Most participants were in their early- mid 20’s. The groups were primarily women, with one male interviewee. All groups displayed eco-conscious behavior and passed our screener.  Group 1 (Prius Owner)  Both reside in Austin  Female, married with one child  Female, single with no children  Group 2 (Hybrid sedan buyer)  Reside in the San Marcos/Austin/Houston area  Female, single with no children  Female, married with no children  Male, single with no children
  61. 61. + 61 Who We Talked To
  62. 62. + 62 Who We Talked To Joy M. –Prius owner 45 years old Resides in Austin, TX Currently a stay-at-home mom Worked in the hotel industry before daughter was born Eco-conscious: Recycled before curbside recycling was available. Looking into solar panels for house Has solar panels on husband’s office Replaced windows in house with more efficient newer windows Solar hot water heater Never waters grass Getting water recapture system Starting to compost Values Family Has an 11-year-old daughter Commutes 40 miles roundtrip every weekday Graduated from college in Vancouver
  63. 63. + 63 Who We Talked To Kelsey- Prius owner 25 years old Resides in Austin, TX Apartment Dweller Single, no children Student at Austin Community College Currently a Certified Nursing Assistant at Assisted Living facility Eco-conscious: Cares for the environment Recycles paper and plastic, apartment complex has recycling bins Tries to conserver water/energy Values Family and Friends Father drives a Prius, “Toyota Family” Commutes approximately 50 miles roundtrip every weekday
  64. 64. + 64 Who We Talked To Kim-Prospective buyer Lives in San Marcos, TX 22 years old Single with no children Student at Texas State University Graduates in May, job lined up Eco-conscious: Cares for the environment Recycles paper and plastic Into the “green” movement Buys organic clothing and food Member of the “Adopt A Highway” program Drives to her sisters house daily which is 30 miles roundtrip Apartment dweller
  65. 65. + 65 Who We Talked To Jessie- Prospective buyer 24 years old Works in the health industry Currently drives a 2008 Hyundai Elantra Commute to work roundtrip is 20 miles Also commutes all over Austin for photography adventures on the weekends. Eco-conscious: Eats organic food Keeps AC no higher than 78 degrees Recycles plastic, glass, paper If it gets hot, she opens the window Uses canvas bags for groceries Married with no children Apartment dweller Student at Austin Community College
  66. 66. + 66 Who We Talked To Brad- Prospective buyer 28 years old Computer programmer Graduated from Sam Houston State University Commutes 20 miles to work one way in Houston Eco-conscious: Recycles grocery bags, cans and plastics Makes sure appliances are turned off when not being used Environment is important to him Single with no children Apartment dweller
  67. 67. + 67 Key Insights  Both Prius owners were eco-conscious in other areas of their lives besides the car they drive.  (Joy, 45, Stay-at-home mother of one from Austin, Prius owner)  “We are extraordinarily eco-conscious”  “When you say what do I do in my spare time, I worry about the environment.”  “We are recyclers beyond recycling.”  (Kelsey, 25, CNA Austin, Prius owner)  “I recycle paper and plastic.”  “My entire family is eco-friendly and always will be.”
  68. 68. + 68 Key Insights  For Prius owners, buying a Prius satisfies their need to be closely associated with others, otherwise known as affiliation.  (Kelsey, 25, CNA, Austin, Prius owner)  “I’ll be driving down the road and wave to another Prius driver.”  Family members and acquaintances had a large impact on the owners buying decision.  (Kelsey, 25, CNA, Austin, Prius owner)  (When asked about the purchasing process) “My dad has one [a Prius], so I knew that’s what I’d be driving.”
  69. 69. + 69 Key Insights  The Prius owners, and one hybrid prospective buyer, were brand loyal to Toyota.  (Joy, 45, Stay-at-home mother of one, Austin, Prius owner)  (When asked about the recent recall) “Will it stop me from buying another Toyota? No.”  “I just have a lot of respect for Toyota.”  (Jessie, 24, married health care worker, Austin, Prius owner)  “Toyota, before this current situation, has always been very good. I used to own a Toyota, I loved my Toyota, it was a great car. I would buy another Toyota.”  (Kelsey, 25, CNA, Austin, Prius owner)  “From as far as I can remember, my dad has always owned a Toyota.”
  70. 70. + 70 Key Insights  As far as the recall goes, one Prius owner was surprisingly understanding toward the situation and willing to forgive the company although they wish Toyota would have revealed the problem sooner. A prospective buyer felt that Toyota is taking the right steps.  (Joy, 45, Stay-at-home mother of one, Austin, Prius owner)  “I just have a lot of respect for Toyota and the fact that Mr. Toyota himself apologized, but they should have come out sooner”  “As a manufacturer of something that people in him, he should have had more integrity and more transparency.”  “I think a lot of car companies do the same thing.”  (Brad, 28, computer programmer, Houston, Prospective buyer)  “It’s unfortunate, but at the same time I think they’ve done a great job trying to ameliorate the situation.”
  71. 71. + 71 Key Insights  When performing the engagement technique with the prospective hybrid buyers and Prius owners, we noticed that Mercedes and Lexus are perceived as snobby brands. Hyundai is perceived as somewhere in between Honda and Ford.  (Jessie, 24, married health care worker, Austin, Prospective buyer)  “Honda and Toyota are more eco-friendly, world conscious people.”  “Hyundai is somewhat geared toward trying to break into the Honda and Toyota crowd.”  “Mercedes and Lexus are more snobby, stuck-up people.”
  72. 72. + 72 Key Insights  When asked about the different car brands during the Family of Brands engagement technique, one Prius owner felt that Ford would be the grandfather, Lexus and Mercedes the parents, and Honda, Toyota and Hyundai would be the children.  (Joy, 45, stay-at-home mother of one, Austin, Prius owner)  “Ford would be the grandfather, because it’s a very old company.”  “Lexus and Mercedes would be the parents because they have already earned all of their money.”  “Honda, Toyota, and Hyundai would be the children.”
  73. 73. + 73 Key Insights  The prospective hybrid buyers felt that the Prius may not be able to accommodate them when it came to starting a family.  (Jessie, 24, married health care worker, Austin, Prospective buyer)  “If we did have children, by the time we get car seats, there’s really not any more room for anybody else in the car if you wanted to bring them along, or stroller or things like that.”  (Kim, 24, single student, prospective buyer) • “It’s a little small, I plan on taking road trips with my friends and family when I graduate, so…”
  74. 74. + 74 Key Insights  Some perspective buyers find it important to be part of the “Go Green” trend, in other words, they want to consider themselves trendy. Perspective buyers find it attractive that some celebrities are driving hybrid vehicles. The aesthetics of various cars were mentioned in the interview multiple times.  (Kim, 24, single student, Prospective buyer) • “Going green is ‘in.’”
  75. 75. + 75 Insights SummaryEco-conscious Learned that all owners cared about the environment One participant grew up in an environmentally-friendly household, now making recycling a habit. Others mentioned solar-panel installation and conservation.Affiliation/Trendy Another prominent theme among owners was the community associated with Prius drivers. Buyers may not be loyal to the Toyota brand, but may still want a Prius because it is trendy to have one.Brand Loyalty/Confidence Buyers and owners showed signs of brand loyalty Many said they would purchase a Toyota again. A few mentioned their loyalty has spanned many years.Recall Owners were understanding to the recall situation, willing to forgive the company’s problems, and still respected Toyota as a company. All agreed that the proper steps are currently being taken to fix the problems.Engagement Technique Ford, Mercedes, Lexus, Hyundai, and Toyota were presented in the “Family and Party of Brands/Brand Personification” Technique Participants noted Mercedes and Lexus brands were perceived as snobby and rich To some, Hyundai was seen in between Honda and Ford, while to others, Hyundai represented the bottom of the totem pole and the least-favored company. Many placed Lexus and Mercedes in the parental or older roles.Family Sedan Prospective buyers were reluctant to choose the Prius based on size. One participant felt that after car seats, there may not be much extra room.
  76. 76. + 76 Screener Screener  Hello, my name is _______ from BerryBee market research. We are looking for participants to take part in a focus group, and would like to ask you a few questions. We are not selling anything nor will we follow-up with any sales calls as a result of this study. The information you provide will positively impact many products and services offered to people like you. 1) Were looking for people working in certain industries. Have you, your family or any of your close friends ever worked in the following industries? Advertising agency/public relations (End) Marketing research/product development (End) Manufacturer, distribution or marketing of hybrid vehicles (End) Automotive sales (End) None of these (Go to question #2.)
  77. 77. + 77 Screener 2) When did you last participate in market research? _______________________________________________________  (If less than 3 months ago, please end. If more than 3 months ago, continue to question #3) 3) What was the subject of that research? _______________________________________________________  (If automobile related, please end.) 4) Do you currently own a Toyota Prius?  ☐ Yes (Continue to question #6)  ☐ No (Continue to question #5) 5) Are you currently in the market for a hybrid sedan?  ☐ Yes  ☐ No (End)
  78. 78. + 78 Screener 6) Are you between the ages of 21 and 50?  ☐ Yes  ☐ No (End) 7) Please indicate your age. ________ 8) Please indicate your gender.  ☐ Male  ☐ Female 9) Do you currently reside in the United States?  ☐ Yes  ☐ No (End)
  79. 79. + 79 Screener 10) How many miles do you commute per weekday?  ☐ Less than 10 (End)  ☐ 10 – 30  ☐ 31 – 50  ☐ 51 – 70  ☐ more than 71 11) Do you have a college degree?  ☐ Yes  ☐ No (End) 12) Please indicate your marital status.  ☐ Single  ☐ Married 13) Do you have any children?  ☐ Yes (how many? _______)  ☐ No
  80. 80. + 80 Screener 14) Do you live alone?  ☐ Yes  ☐ No (how many people live with you? ______) 15) What is your profession?  _______________________________________________  (If student, skip and go to question # 17) 16) How long ago did you begin your profession? 17) Please describe any routine commutes that you would make during a typical weekday.  _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________
  81. 81. + 81 Screener 18) How much do you care for the environment? (Circle one) 1 2 3 4 5 (Not at all) (Very much) 19) What actions, if any, do you take towards bettering the environment?  __________________________________________________ __________________________________________________ __________________________________________________ 20) Imaging that you could travel for one day into another time with a time machine. Which decade or century would you like to see? What would you experience on your trip?  __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________
  82. 82. + 82 Screener 21) Think for a moment about your personality and your comfort level in a one-on-one interview. Which of the following best describes you?  ☐ I am extremely comfortable sharing my opinions just about anywhere, to anyone  ☐ I am very comfortable sharing my opinions in a one-one-one interview  ☐ I am somewhat comfortable expressing my opinions in a one-on-one interview  ☐ I am somewhat uncomfortable sharing my opinions in a one-on-one interview  ☐ Expressing my opinions in a one-on-one interview makes me very uncomfortable
  83. 83. + 83 Discussion Guide  Discussion Guide- Prospective buyers  Warm up questions/General personal questions (5 minutes)  Tell me about yourself. 1. What do you do when you have free time? OBJ 1 2. What are the three most important things in your life? OBJ 1 3. Do you have children? OBJ 1,4 a) How many? b) What are their ages? c) What kind of activities are they involved in? 4. Do you own other cars besides your Prius? OBJ 1 5. Where do you drive during a normal day? OBJ 1
  84. 84. + 84 Discussion Guide 6. In what ways do you consider yourself to be eco-conscious? OBJ 1 -----ENGAGEMENT TECHNIQUE----- (10 minutes) General car questions (8 minutes) 1. Tell me the reasons why you are considering purchasing a hybrid. 2. Explain what your ideal car would be. 3. Describe your experience looking for cars so far. a) How did you begin the process? b) Have you done any research? c) Which cars have you looked at? d) What did you think of them? 
  85. 85. + 85 Discussion Guide  Prius Questions (7 minutes) 1. Describe your feelings toward the Prius. OBJ 2 2. Would you consider purchasing a Prius? OBJ 2 a) Why/Why not? 3. How does the current recall affect your attitude towards the Prius and/or Toyota? OBJ 2 4. Explain what Toyota should do to get you to buy a Prius. OBJ 2
  86. 86. + 86 Discussion Guide  Discussion Guide- Prius owners  Warm up questions/General personal questions (5 minutes) 1. Tell me about yourself. a) What do you do when you have free time? OBJ 1 b) What are the three most important things in your life? OBJ 1 c) Do you have children? OBJ 1,4 1. How many? 2. What are their ages? 3. What kind of activities are they involved in? 2. Do you own other cars besides your Prius? OBJ 1 3. Where do you drive during a normal day? OBJ 1 4. In what ways do you consider yourself to be eco-conscious? OBJ 1
  87. 87. + 87 Discussion Guide  -----ENGAGEMENT TECHNIQUE----- (10 minutes)  General Prius questions (8 minutes) 1. How long have you owned your Prius? OBJ 1 2. What kind of cars have you previously driven? OBJ 1 3. What initially drew you to the Prius? OBJ 3 4. Tell me about the process you went through when purchasing your Prius. OBJ 1,2 5. Were you considering any other hybrid sedans? OBJ 1,2,3 a) If so, why did you choose the Prius over the other choices? 6. What is it about your Prius that you enjoy the most? OBJ 3 7. If you could change anything about your Prius, what would it be? OBJ 3
  88. 88. + 88 Discussion Guide 8. Would you recommend the Prius to your friends? OBJ 2,3  The recall (7 minutes) 1. How did you initially hear of the recalls involving Toyota cars? OBJ 2 2. Tell me how you feel about the way Toyota has responded to the recall. OBJ 2 3. Were you contacted in any way by Toyota or your dealer regarding the recall? OBJ 2 4. What would you have done if you were in charge of Toyota? OBJ 2 5. If you could say anything to the President of Toyota, what would you say? OBJ 2,3
  89. 89. + 89 Engagement Exercise  Engagement Exercise: Honda Toyota Mercedes Lexus Ford Nissan Hyundai Chevy
  90. 90. + 90 Engagement Narrative  Engagement Exercise Narrative:  Choose one from below:  I have names of different car companies. I want you to pretend they are people at a party. Tell me what about the kind of person each brand would be. You can use age, gender, personality, etc.   I have names of different car companies. I want you to pretend they are the different people in a family. Tell me what about the role each person will play. (Mom, Dad, Daughter, Grandma, etc.)
  91. 91. + 91 Creative Brief
  92. 92. + Creative Brief 92  Why are we advertising?  To reinforce and promote desire and interest for the Toyota Prius.  Who are we talking to?  We are talking to men and women ages 21-50, single or married, who live in the U.S. in primarily urban areas. They are professionals with some college or college degrees. They are otherwise known as “Eco- Concerned Solutionists.”  What do we know about them?  They place a high value on protecting the environment. They would be classified as “Thinkers” according to the VALS framework, since they are mature, educated individuals who are receptive to social change.  What do they currently think/feel/do?  Prius owners are generally happy with their car, but seem to be conflicted over their satisfaction with the way Toyota has handled the recall situation. Many of them feel a strong sense of belonging with other Prius owners.  What would we like them to think/do?  “They Toyota Prius is the leader in this hybrid transportation movement. I’m going to buy one.”  What is the main idea we need to communicate (the proposition)?  The Toyota Prius is a reliable and fuel-efficient vehicle.
  93. 93. + 93 Creative Brief Cont’d  Why should they believe it?  The Toyota Prius has been among the most popular hybrid vehicles since 1997 and is currently the most fuel-efficient hybrid car sold in the U.S. according to the United State Environmental Protection Agency.  Positioning Statement  For hybrid sedan buyers, the Toyota Prius is the best hybrid sedan because of its fuel-efficiency.  Brand Personality  The Toyota Prius is dependable and safe, yet trendy and vivactious, evoking a happy-go-lucky spirit. The Prius embodies a clean and beatiful environment and stands for environmentally conscious values. A mature intellectual, the Prius is both the embracer of technological advancement and the tree-hugger.