Toyota prius case study

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The case throws a light on how Toyota marketed their hybrid product ‘Prius’ in USA. It is a market which had a history of fast cars and big SUVs.
The presentation was co-developed by : Aakansha Bajpai, Abhishek Bose, Amit Kumar Das, Arvind Singh, Arunava Saha, Archana Yadav (MSRIM Bangalore)

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Aniruddh Tiwari
Linkedin :- http://in.linkedin.com/in/aniruddhtiwari

Published in: Business, News & Politics
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  • 1) Customers:-Organisations survive on the basis of meeting the needs,  wants and providing benefits for their customers. Failure to do so will result in a failed business strategy. We will see in the coming up slides, how Toyota identified its market and targeted the customers.2) EmployeesEmploying the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organisation. Training and development plays an essential role particular in service sector marketing in-order to gain a  competitive edge.  Here Toyota Provided extensive knowledge about the Product (Prius) to its employees, especially to the sales force.3 SuppliersIncrease in raw material prices will have a knock on affect on the marketing mix strategy of an organisation. Prices may be forced up as a result. Closer supplier relationships is one way of ensuring competitive and quality products for an organisation. It was just what Toyota did with its suppliers. Take for example the micro controller chip of the car was procurred from Nippon Electronic Corporation, Japan wchich are one of the best in business.4 MediaPositive or adverse media attention on an organisations product or service can in some cases make or break an organisation.. Consumer programmes with a wider and more direct audience can also have a very powerful and positive impact, forcing organisations to change their tactics. We’ll see Toyota’s Marketing tactics in the forthcoming slides.5) CompetetorsThe name of the game in marketing is differentiation. What benefit can the organisation offer which is better then their competitors. Can they sustain this differentiation over a period of time from their competitors?. Competitor anlaysis and monitoring is crucial if an organisation is to maintain its position within the market. By introducing Prius in 2000, Toyota pioneered & dominated the hybrid market untill the hybrid version of Honda Civic was introduced in 2002.
  • By 2003 Honda dominated the Hybrid Car segment after the introduction of the hybrid version of their most popular sedan The Civic. The major reason of the dominance of Civic was that it directly appealed to the mass market as compared to Toyota’s concept of serving a unique product.But this scenerio however changed in the later years and the Prius again became in the market leader.
  • Toyota prius case study

    1. 1. A Case Study On Prius – Leading a wave of Hybrids Submitted ByAakansha Bajpai Abhishek BoseAniruddh Tiwari Archana YadavArunava Saha Arvind SinghAshok Kumar Amit Kumar Das
    2. 2. An Overview• The case throws a light on how Toyota marketed their hybrid product ‘Prius’ in amarket which had a history of fast cars and big SUVs.• Prius has two drive trains :- • A conventional gasoline engine • An Electric Motor• When running in slow speeds( upto 15 mph) the electric motor powers the Prius,and on speeds above 15mph the gas engine provides the power to the car andcharges the battery at the same time.• Although, being unpopular in the ‘Test Drivers’ Fraternity due to its sluggishbehavior, the early sales of Prius were quite impressive.•Toyota targeted those buyers which are known as early adopters and innovators &those who always love new technology.• Innovative marketing tactics were adopted in the print media, on Television and onthe Internet to create a hype about the car.• The case tells how Toyota identified the market and adopted itself at various stagesof product cycle and concentrated on its Target Customers.
    3. 3. Analyzing The Micro Environment ForThe Launch Of First Generation Prius
    4. 4. What Do We Mean By Micro Environmental Factors ?The Internal factors which are close to the company and play an important role in the company’s strategy are known as Micro Environmental factors.
    5. 5. Lets Have A Look On Some Of The Crucial Micro Environmental Factors :-
    6. 6. Toyota’s Marketing Strategy Time Line First Stage of Marketing Second Stage of Marketing1998 2000 2003 Third Stage of Marketing2003 2004
    7. 7. First Stage Marketing:-• Toyota set a perfect stage to launch a product which was ahead of its time in terms oftechnology.• Their Target Market was the group of those people who love new technology and areadaptable to changing trends.• Although this segment comprises of only 2.5% 1 of the overall market, but it is highlyimportant as it sets the trend for a particular product.• Their marketing campaign started two years before the launch of the product so as togather the attention of these ‘techies’. These campaigns were in form of internet marketing.Even their initial ads tried to trickle the minds of techies by innovative tag line like : “A carthat some times runs on gas power, sometimes runs on electric power, from a company thatruns on Brain Power.1Source : The PDMA Glossary for New Product Development. Product Development &Management Association. 2004.
    8. 8. Second Stage Marketing:-• The bulk of the campaign was on television channels which had highest number ofviewership.• After the launch of Prius, to get hold of the segment, Toyota started playing with theemotional aspect of the people by airing ads like ‘When it sees red – It Charges’. Due tothe ambiguity of the ad it impacted more and caused higher ad recall.•The online communities such as www.priusenvy.com also played important role inincreasing the popularity of the car. In these communities people portrayed theircustomized Prius (like connectivity to the ipods, cruise control etc.)
    9. 9. Third Stage Marketing:-• By 2004 the market Toyota was targeting was saturated.•Therefore they changed their market strategy and shifted their focus on the segment of marketcalled ‘Early Adopters’.• Often the Early Adopter segment, an estimated 13.5% of the market, is pursued inconjunction with the Innovators. Early adopters, perceived as ‘visionaries’ in the market,buy into new products early in the life cycle, are imaginative thinkers who find it easy toenvision and use new technology, rely on their own intuition in purchasing, as opposed todepending on references from others, and are more tolerant of bugs or glitches in newproducts than the average consumer.• Toyota introduced a second generation Prius which had features catering the needs of thissegment like deep dashboard, lots cup holders, a 6 CD Player, ample amount of legroom etc.•Toyota set a marketing budget of $40 million dollars. This campaign was spread through out themedia in more consumer oriented magazines. And the sales result was an instant boost of 120%.
    10. 10. Toyota’s Biggest Competitor : Honda Civic Hybrid
    11. 11. We Thank You For Your Patience.

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