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Prius: Leading a Wave of Hybrids
Transcript of Prius: Leading a Wave of Hybrids
Prius - Leading a Wave of Hybrids
Toyota Prius - one of top selling vehicles in America
How it works?
The overall category of gas-electric vehicles in the United States is hotter than ever. Although hybrids accounted for only about 3 percent of total U.S. car sales in 2007, their share is growing rapidly.
Sales of the Prius and Civic have grown significantly each year since their introductions. But less efficient (and more expensive) hybrid models such as the Honda Accord (now discontinued), the Ford Escape, and the Mercury Mariner have not fared nearly as well.
Consumer Reports revealed that of six hybrid models studied, the Prius and the Civic were the only two to recover the price premium and save consumers money after five years and 120,700 kilometers.
In 2008, there were 15 hybrid models available in the United States from 9 different brand nameplates.
GM plans to extend the Saturn hybrid line to almost every vehicle in the lineup.
Ford plans to produce 250,000 hybrids a year by 2012.
Audi, BMW, and numerous others are busy developing hybrid vehicles of their own.
Toyota is currently the clear leader in hybrid sales and likely will be for some time to come.
Toyota faces a greater challenge in ramping up production to meet demand than from external competition.
All indications show that Toyota plans to maintain its hybrid momentum.
Fueling the Hybrid Craze
A Runaway Success
1. parallel hybrid
2. power divider
3. set of batteries
What microenvironmental factors affected both the first generation and second generation models of Toyota Prius? How well has Toyota dealt with these factors?
Answer to 1. question:
Answer to 2. question
Answer to 3. question
Answer to 4. question:
Conclusion: Wrapping it all together
Outline the major macroenvironmental factors - demographic, economic, natural, technological, political, and cultural - that have affected Prius sales. How well has Toyota dealt with these sales?
Evaluate Toyota's marketing strategy so far. What has Toyota done well? How might it improve its strategy?
GM's 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?
In this case, I agree with Mr. Stewart because hybrid car is one that uses more than one means of propulsion. At the moment, that means combining a normal petrol or diesel engine with an electric motor.
The chief advantages of a hybrid are that it uses less fuel and emits less CO2 than most conventional non-hybrid vehicles.
Because of this, owners also get extra benefits in the shape of lower rates of road and company car tax, as well as possibly avoiding congestion charges.
In order to answer this question, we must first outline microenvironmental factors and those are: company, suppliers, competitors, intermediaries.. When it comes to this case, it is safe to say that two major microenvironmental factors are company and the competitors.
Consumers, getting affected by the gas prices, were looking for an answer to their prayers. Toyota gave them the answer by giving them a vehicle, that would allow people to save gas as well as provide good and efficient service. Once the first Prius generation was released, although not too fancy, its served to its purpose and people were buying it.
Other factor are competitors (Ford, General Motors, Nissan, Hyundai, Subaru, Honda), which of course want their own piece of pie. Honda started developing the hybrid system on some of their own vehicles. Toyota's answer to this was to keep developing the model of Prius and this is how the second generation came to life and now even more types of clientele were interested in it.
The marketing strategy consists of 4 Ps which are product, price, place and promotion.
The product that was re-launched had far better and attractive features as compared to its previous version, which included its outer appearance as well as the inner characteristics.
Secondly, the price maintained was also competitive and helped the company to maintain an edge over the rivals as well as retain its customers profitably.
The product was well received by the market in the sense that it was available easily in the showrooms as well as on the internet. The customers were able to make well- informed decisions because of the detailed website and the personal assistance provided by the trained agents. They were also able to share their experience through chat rooms such as Prius envy.
ComExtensive marketing campaigns and heavy promotional activities through TV(Discovery channel, MSNBC, History and Learning Channel etc), billboards, auto magazines (Newsweek, Vanity far), newspapers, leaflets along withemotional taglines and environmental appeals helped Toyota set itself as the market leader.
Finally, the betterments may include higher quality for the inner features so as to improve the actual driving experience of the customer i.e. it is not a muscle car and doesn’t even provide very high speed. This factor should be considered since their main focus is on youngsters. Then it should use below the line advertising strategies and maintain direct and personal contact with the existing as well as the new focused customers.
With respect to the economic factors, the case shows that the customers had enough income to spend on this luxury. This is shown by the fact that the company was able to sell 1800 cars in immediately and also had to raise the monthly production level by 33% and then even by 100% to meet the demand.
Toyota is an environmentally concerned company since it had greater fuel efficiency and lower emissions. It also took advantage from the environmental appeal by sending out green seed cars shaped like Toyotas logo to prospective buyers on Earth Day.
The technological factor is explained by the many factors including adding cruise control by some wiring, dashboard display screen, playing videogames, installing sniffer, 7-inch energy monitor, a CD player holding 6 discs at a time and many more. Since the customers favored technological products and had enough knowledge Toyota was able to maintain customer loyalty.
Politically, the company received support form the government in the form of tax deductions which helped efficient production but on the same note the speed limit factor acted as a hindrance but was covered by extensive marketing campaigns.
In 2006 Prius was one of the top hybrid car to be sold this was because of the combined petrol engine with electric motor.
Other hybrid car runs using both fuel efficiency and power while Prius used only electric motor when starting up and under initial acceleration.
In 2007 it can be noticed that increased in sales for the car was very rapid. There was at least seventy percent (70%) increase from 2006 while on 2008 there was more than hundred percent (100%) increase.
Toyota’s targeting strategy – there has been spot on from the beginning. They focused on the adapters and techies attracted by advanced technology.
Various external incentives – some states issued permits for hybrid to drive in High Occupancy Vehicles (HOV) lanes.
Some cities provide free parking but the biggest incentive was monetary.
Biimyrza Nurlanbek Uulu
first went to sale in 1997 in Japan and was introduced worldwide in 2000
sold in over 90 markets
first generation Prius became the world's first mass-produced gasoline - electric hybrid car
the case shows us how Toyota marketed their Hybrid product "Prius" in a market which had a history of large cars and SUV's
(1997 - 2003)
latin word for "to go before"
Toyota Prius is
available (both in showrooms and internet)
a lot was invested in promotion (educated their customers and spend over 40 mil. to media)
In order to improve even more:
continue to improve fuel efficiency and try to spread on new markets