Toyota Prius Marketing Plan

Toyota Prius Marketing Plan

Introduction and Product Description

Toyota Prius

 First introduced in 1997 in Japan. In 2001, it was introduced in North America.

 Miles per gallon

A. First generation - 41 MPG

B. Second generation - 46 MPG

C. Third generation - 50 MPG

 Cost

Starting MSRP is $21,000; one with everything costs $32,500

Maker of the Prius: Toyota Corporation

NAICS code - 336211 for vehicle manufacturing

Target Customer Analysis

Target Market

Toyota Prius largest market target would be educated working adults in developed urbanized communities especially in North America where there is a subculture of environmental concerns and issues which are relatively more active compared with the rest of the world. Thus these educated working class would be attracted to the Prius' energy and fuel savings, and automatic battery recharging which would not only be a lot more environmentally friendly, but would ensure a more smoothly-powered ride to work in a congested city morning.

Customers' Needs

If fuel efficiency is what you're after, the Prius delivers. Its interior and exterior styling can make it seem like a spaceship, but the latest Prius is a spacious and practical way to save gas. The 2011 Prius gets an estimated 50 miles per gallon. It has an official capacity of 11.9 gallons, and according to the above estimate, the car has a maximum range of about 595 miles. In addition to being obviously economical and environmentally friendly, they drive great and are just plain sexy.

Demographics, Psychographics, and Geographics

Demographics: Private ownership is the most important market. The consumer is either male or female and between 30 and 50 years old (mid-life). They are likely to be married (Full nest or Empty Nest) and with family responsibilities. They are affluent and well-informed and educated adults, classed in the AB socioeconomic segment. Therefore, they are in higher managerial, administrative or professional occupations and of upper middle class. Hence they are not only prepared to purchase environmentally-friendly but also able to pay more for it (higher disposable income). They are either property owner or rent privately and are most likely to already own a lower medium car or similar.

Psychographics: Within the demographic profile, three main mindsets of probable buyers could be identified:

1. Early Adopters/ Technology pioneers. Those who are interested in the latest technology/ innovation, and must be the first on the block to own this technology and embrace it.

2. Environmentally Friendly. Those who are recognizing the environmental impact of motoring and would like to do something about it. Those only "somewhat concerned" and seeking to express their concern and ease their conscience without causing themselves too much inconvenience. The socially aware mainstream, but more hesitant to buy new technology.

3. Value Conscious. Those who are looking for the ideal combination of high fuel economy and low maintenance cost in long run at an affordable price.

All three groups are likely to be exposed to the same degree of outdoor and ambient advertising. It is difficult to estimate the exact size of each group, but most buyers will be a mix of all three and not only one reason will motivate a purchase. The overall size of these groups is probably fairly small and will explain why Hybrids are not more common yet.

Geographics: The private buyer will be from anywhere in the North America, but a higher share of people in a high populous communities are prepared to buy a car with environmentally friendly features. This can be attributed to the problems of pollution and congestion being more widely perceived as a problem. Consequently the target buyer is more likely to come from an urban area or a large city.

Qualifying and Determining Dimensions

Body Styles, Trim Levels, and Options: The 2011 Toyota Prius is available in five trim levels: Prius I to Prius V. Standard equipment on Prius I includes 15-inch steel wheels, full power accessories, a tilt-and-telescoping steering wheel, a height-adjustable driver seat and a 60/40-split-folding rear seat. The Prius II adds 15-inch alloy wheels, heated side mirrors, automatic headlights, keyless ignition/entry, cruise control and a six-speaker stereo with CD player and auxiliary audio jack. The Prius III adds Bluetooth and an eight-speaker JBL upgraded stereo with six-CD changer. Prius IV includes all the above equipment as well as an exterior locking buttons for keyless entry, leather upholstery, heated front seats, driver lumbar adjustment and an auto-dimming mirror. The loaded Prius V comes with 17-inch alloy wheels, fog lamps and LED headlamps with auto-leveling and washers.

The Navigation package, available on all but the Prius I and II, includes a voice-activated touch screen navigation system with real-time traffic, a rearview camera, a four-CD changer (replacing the six-slot), an iPod/USB audio interface and Bluetooth music streaming. The Solar Roof package can be added to the Navigation package and includes a sunroof with a solar-powered ventilation system that cools the car when parked, and remote-activated air-conditioning for cooling the cabin before you enter.

The Advanced Technology package available for Prius V includes all components of the Navigation package plus adaptive cruise control, pre-collision alert system, a lane departure warning system and automated self-parking.

Powertrains and Performance: The 2011 Toyota Prius is powered by a 1.8-liter four-cylinder engine combined with a pair of electric motor/generators. The generators send their power through a specialized continuously variable transmission (CVT). The result is total output of 134 horsepower. In track testing, the Prius clocked from zero to 60 mph in 10.1 seconds, which is about average for a hybrid vehicle. The most important number, however, is fuel economy. The EPA estimates the 2011 Prius will return a very impressive 51 mpg city/48 highway and 50 mpg combined.

Safety: Every 2011 Toyota Prius comes standard with antilock