Toyota was founded in 1926 and began producing automobiles in 1937. Currently, Toyota offers the hybrid Camry and Prius sedans. In 2009, 72% of hybrid sales were Toyota vehicles. The typical Prius driver is over 50 years old, earns over $100,000, and lives in California, New York, or Florida. Competitors to the Prius include the Honda Insight, Ford Fusion Hybrid, and Nissan Altima Hybrid. Advertising for hybrid vehicles focuses on fuel efficiency and positioning the vehicles as affordable and environmentally friendly.

1. T YOTA PRIUS Secondary Research Report Texas State University Account Planning 4316 February 9, 2010

8. Top 5 U.S. Cities with Highest Hybrid Sales www.hybridcars.com

13. Current Size of the Category www.hybridcars.com Of the hybrid sedans sold in December 2009, the most purchased competitor cars were the Honda Insight, the Ford Fusion, and the Nissan Altima.

14. Current Size of the Category Product Units sold in U.S December 2009 Toyota Prius 11,775 Honda Insight 1,639 Ford Fusion 1,556 Nissan Altima 842

25. SWOT Analysis Strengths: - better fuel efficiency than other similarly sized cars. - comfortable and quiet ride; smooth acceleration and braking - spacious - high scores in safety tests - customer satisfaction - low pollution/emissions Weaknesses: - remains reliant on fossil fuel - more expensive than other similarly sized cars - specialist needed for servicing, repairs, etc. - peak performance less than other similarly priced cars. Opportunities: - evolution into a "Plug-in Hybrid" with higher capacity batteries and a drivetrain designed to operate for extended periods in electric-only mode. - spread into other market sectors (already happening at the top end with Lexus hybrid models) - Increasing awareness of environmental issues likely to keep demand high. - licensing of technology to other manufacturers who may be getting wrong-footed by the market demand for "green" cars. - governments seeking to meet Kyoto targets etc. may give incentives for cars such as the Prius with lower emissions (already happening in many places). Threats: - various rumors may serve to decrease credibility or consumer confidence... e.g. "I heard..." - dilution of market share as competitors introduce more "green" cars, particularly if it is overtaken by an even "greener" car. - if fuel prices fall significantly, consumer interest in fuel economy may wane.