Table of Contents 1.0 Introduction..2 2.0 Toyota Motors Corp. Concepts...2 2.1 Segmentation.................2 2.2 Targeting..3 2.3 Positioning3 3.0 Toyota Prius 4 3.1 The Market of Toyota Prius4 3.2 Priuss Target Market5 3.2.1 Demographic....5 3.2.2 Geographic.5 3.2.3 Psychographic..5 3.2.4 Behavioural...5 3.3 Toyotas Prius Positioning..6 4.0 Marketing Strategies of Toyota Prius ( 4Ps).7 4.1 Price.7 4.2 Product..7 4.3 Promotion.8 4.4 Place9 5.0 Conclusion..10 6.0 References..11 7.0 Appendices....14

1.0 Introduction

According to the company of Toyota began in the 1957 when it first came to the America. In the beginning, Toyota was poorly start a car called the Toyopet, but they made their comeback after 8 years which is in the 1965 strongly (Toyota.com, 1957). After the poor days, the Corolla, Camry and the Toyota trucks came out. Then the luxury brand which is Lexus and Scion also became a part of the Toyota company brand. Recently, Toyota also built the worlds first hybrid car as we know today, Prius. It became the leads in the automobile industry in the environmental technologies with the success of the hybrid technology in the Prius and also the Hybrid Camry. As Toyota Company still progressing every day after the past 50 years, they became one of the top car companies in the America. The Toyota Company offering various types of products such as Prius, Camry, Corolla Altis, Innova and more. They provide different kind of design, concepts of car, engines, glossary and also safety. The vision of the Toyota Company was to the most respected and admired company while their mission is to deliver the outstanding automotive products and services to their customers, and enrich their community, partners and environment (Toyota Australia, 2012).

2.0 Toyotas Motors Corp. Concepts

2.1 SegmentationDifferent segment like age, gender, income and not least, the geographical segmentation and behavioural segmentation was the segment that the Toyotas Company target for. For example, income is the most common basis for segmentation. Toyota Lexus is for the high end, while Camry is for the middle of the roaders. Other than that, for geographic segmentation was different countries have different weather such as snow, so that the country should target on special tires to prevent incidents happen. In addition, for the behavioural segmentation, is on the basis of the occasions, product usage, benefits from a company to their customers, and also the loyalty status of the customers. Toyota Companys target segmentation is to gathered the ideas from their customers and improve the quality in many parts. Toyota does what their customers market have a similar needs, characteristics, or even behaviours and group up the market. According to them, they did improve some of the ideas from the customer feedback such as a system that can be switched the colour of the graduations on the meter to suit the customer preference (Toyota.co.jp, 1935). 2.2 TargetingToyota is the actual selection of the segment that they want to serve the target market of people or an organization that needs a product that specifically designed to satisfy their demands and needs. Toyota's target market is the entire world of people, from the age of groups from 16-80 and above. They created the Solara to put some sportiness design into the Camry. Other than that, Toyota also makes trucks to be able to cruise off road, with also the FJ Cruiser, 4Runner, and also Land Cruiser. They make cars designed to improve gas mileage and be better for the environment with the Prius. Toyota Company makes dependable, long lasting, while they were economical sedans that are affordable, such as the Camry and Corolla. They make hard working pickups with the praised Tundra and the smaller Tacoma. They create family friendly cars that carry a lot while still being economical with the Sienna and Highlander. Toyota also creates small cars that can be used for small trips like Matrix. Moreover, the Toyota Company are marketed to so many people, and they are so well known that their cars can be used around the spectrum. They actually make a car for almost anyone. If include their Lexus line, they also make great luxury cars.2.3 PositioningPositioning is the use of the marketing to enable customers to form a better mental image on Toyotas product in their minds. According to Friesner, Toyota strong industry positioning is based on the number of factors that included the diversified product range. While they highly targeted marketing and also make a large range of vehicles for both privates and commercialize customers (Friesner, 2005). For the Toyota Company, Lexus and Toyota are now having the reputation for environmentally friendly vehicle. For example, Lexus own a RX 400h hybrid while Toyota has Prius. In addition, according to Thepensters.com, Toyota targeted the urban youth market now, so, they launched the new Aygo which is target on the streetwise youth market and attempts to the nature dance and DJ culture in a certain segment (Thepensters.com, n.d.).3.0 Toyota PriusThe Toyota Motors Corporation manufactures cars ranging from economy minivans to luxury cars and SUV. Toyota Prius is the car which had considerable success in the U.S. market. Initially this was due to the fact that America had had gasoline crisis and the Americans needed in oil saving cars. While American cars manufacturers are producing not enough cars, Toyota took advantage of the opportunity and took its place in the market. Toyota is a great example of energy efficiency as it provides environmentally cleaner emissions and ever-saving dollar that it saves. The uniqueness of this machine is that it has a hybrid system, which allows using two types of power sources such as combination of a petrol engine and an electric motor, thereby allowing choosing power sources according to driving condition. Due to the fact that Prius is the first hybrid of mass production, so competition among such cars is not high (Appendix 1). Although the Honda Insight is a hybrid too, but compared to the Prius cannot offer the same conveniences.3.1 The Market of Toyota PriusIn view of the rapidly changing tastes of buyers, the market of Toyota has become more differentiated. Certainly the differentiated market is more expensive and is focused on a narrower range of consumers. However, differentiation helps to achieve high sales and take a strong position in the market. Toyota Motors Corp is mainly targeted at buyers of upper-class. These buyers belong to generation X. However, the demand among buyers of Generation Y increases. Thus, Toyota can meet the needs of customers both generations. Where technical features of car are more paramount, as for others design of car. Toyota is more focuses on buyers Generation X.3.2 Priuss Target MarketBasic target market of Prius can be determined from basic demographic, geographic, psychographic, behavioral segmentation variables.3.2.1 DemographicThe demographics of people who are able to buy a Prius are women and men between 30 and 50. This type of customers is the generation X, those who was born in 1961-1981. This age population problem-solvers, family-centric, technology competent, politically conservative. They have goal-oriented lifestyles, holds a high status in society, well educated. The social status is primarily managers and entrepreneur with high levels of income. Most of them are deep commitment to family and career. Due to the high income, they are not only willing to buy eco-friendly car, but also be able to pay for it a higher price. 3.2.2 GeographicGeographically the main markets of Prius are Europe and Western America, since these areas are industrial centers. Consequently the target buyers of Prius are urban populace. 3.2.3 Psychographic These people can be divided into two groups, early adopters and thinkers. Early adopters those who are use a new technologies or products before others. They are interested in the last technologies, also they are called trendsetters. Thinkers, they are conservative, mature, and responsible and appreciate the functionality and value in the products they buy. Thinkers are aware the impact of motoring on the environment and want to minimize the use of substances harmful to the environment. Also for them is a priority fuel economy and low operating costs of car. 3.2.4 Behavioral These people have an economic image about car before they buy the car. In other words when they buying hybrid cars, they expect that as rising fuel prices will pay off their costs. Also buyers of hybrids keep their cars much longer than the average person.3.3 Positioning Positioning is one of the important steps in the development of the product. In the face of fierce competition in the market survive those businesses that correctly assessed their possibilities in positioning of goods. In other words right positioning strategy is not only design the product image to customers, but also to compete with other brands. A good example of a winning position is the Toyota Prius. Toyota is a global leader in hybrid technology, sales of Prius significantly higher than any other hybrid models. For many years the Prius is associated in the minds of consumers as eco-friendly car. In its attempt to capture market share Prius originally positioned itself as the first car with a hybrid engine of mass production. At that time, one of the main tasks facing the Toyota is informing potential customers about the product. Since the hybrid vehicle at that time was a new product, in this connection, most people had no idea about hybrids. However, they were well aware of the danger of Co2 and its negative impact on the environment; it was actually a great opportunity for Toyota. Thus, the Prius founded its strategy of positioning on two priorities, such as performance and eco-friendly. While in most people's minds exists the impression that hybrid cars have quite low performance, so the Prius did not focus only on its ecology. The main advantage of hybrid cars is their consuming economy. (Appendices 2) The most famous and competitive hybrids are the Toyota Prius and Honda Insight. Despite the fact that the Prius and Insight are both hybrids, they offer different conveniences. First difference in driving style, since the Prius and Insight are aimed at a comfortable ride, which would like most buyers, though they do it in different ways. Toyota Prius offers a soft, quiet ride which is impressively luxurious, but it is far from the sporty. On the other hand Honda with a better body control, but Insight more sporty than the Prius. Next Prius differentiating factor from other competing brands is its capacity. The interior and baggage compartment are much spacious, than in Insight and Lexus CT200H, which is also a hybrid car. Another advantage of Prius is fuel-economy, which, due to Toyota's advanced technology provides significantly more horsepower than the Insight. Another and most important difference among Prius's competitors is exclusive Hybrid Synergy drive System. This system allows reducing carbon emissions and fuel use. In most of its campaigns Toyota Prius is positioning by the fact that by decreasing the extra power, space, and advanced technology can be satisfied the needs of consumers, at the same time taking care about what needs nature: less carbon emission. 4.0 Marketing Strategies of Toyota Prius ( 4Ps)4.1 PriceToyota Company is one of the largest and famous automotive manufacturers in the world. Toyota is well-known in building cars in different way to fulfill their consumers satisfaction beside than building a powerful engine. The newest investment of Toyota is hybrid car which named as Toyota Prius which can satisfy all their consumers need. In 21th century, there are over 50 hybrids currently on the market. Time passed by, the Toyota Prius has become the best-selling hybrid on the market. Toyota Prius has stellar fuel economy, reasonable price, acceleration characteristic and comfort ride. Thus, these are likely to attract the consumer to buy it. As the price had to offer, the packages given by for example insurance, low instalment from the price of RM1298 to RM1350 per month, 5 years warranty for 60000 miles and full accessories include rims, body kits and high performance engine. The sound system including USB, Bluetooth and excellence bass system. And the safety of the car is also good as the airbag system is also available and this had made this car reasonable to purchase with it price. Annual sales of Toyota Prius are based on diagram 1 whereas the price-list of Toyota Prius is based on diagram 2. (Appendix 3)

4.2 ProductToyota Prius is come out with the idea of reducing the fuel cost by using the electronic system combined with petrol to run the engine. In 2013, Toyota Prius has become the best hatchback car for family because it has the best combination of quality, size of the car and features for the family. There have a lot of passengers seats of Toyota Prius and the backseat slides have more space for legroom and cargo space by pushing it up. The standard features of Prius include Bluetooth, an IPod interface and keyless start whereas the optional features include voice activated navigation system and heated seats. There have 8 different of colours, such as glacier white, crystal pearl, silver pearl, wildfire, stealth, scarlet, dynamic blue and ebony. Design of the Toyota Prius still remains the same because it had become relatively recognizable to their consumer. However, the design of latest generation of Toyota Prius still has slightly differences than before. The new Prius look more modern by including shaper corner and lines designation for improve lines design for better air release. Target market of Prius have divided into 3 categories, there are demographic, psychographic and geographic. In demographic, the private is the most important market. The consumer can be male and female who are usually married and between the ages of 30-50 years old. Toyota Prius will also attract the people who like the latest technology and also the media usage. Meanwhile, people who care about environment will be attracted by Prius because Prius can reduce the population by using electronic motor. Prius has to face a lot of competition with other roll out new and improved hybrid. For example, Ford was unleashed the C-Max, which has been known as Prius fighter. Otherwise, Prius V has been promoted to the market by Toyota in the first full months of C-Max sales. Prius has competes with the C-Max most directly. Test drive will be promoted by Toyota Company to their consumer. Consumer will often attracted and buy the car after they get experience of it. Moreover, Toyota Prius can attract their consumer come to experience their product, Toyota Prius by creating an advertisement and promotion.

4.3 PromotionIn modern life the promotion of such products as cars on the market that has a lot of similar goods domestic competitors, as well as import competitors, for many companies is expensive, time-consuming and complicated. The Promotion of the Toyota Prius can be divided into Toyotas two main marketing campaigns for the 2000 worldwide launch and 2004 launch of all new Toyota Prius. To attract more attention for sales of the Toyota Prius, Toyota Prius advertising department in conjunction with outside advertising agencies such as Saatchi & Saatchi and Oasis Advertising of New York, creates an integrated media plan. This media plan includes using printing advertising, broadcast and exhibitions to introduce whole world with new hybrid Toyota Prius. The campaigns goals are to inform interest and persuade consumers about Toyota Prius. The main characteristics, which campaign uses to describe and emphasis attention of the public are: comfort, convenience and great performance of Prius. One of the important factors is concept of environmentally friendly car, which helps to campaign promote Prius among consumers, who concern about ecological condition. Also advertising campaign implements direct marketing, where the main goal is to let consumers try product in real by offering test-driving. Next feature is a purchasing website, launched by Toyota Company, where consumers can learn about all new development, promotion and also online ordering. Toyota Prius advertising department builds good relationships with consumers by offering great opportunities for those who first submit online purchase requests. Another Toyotas integrated promotion campaign focuses on persuading and reminding and name is The Power to Move Forward. This strategy focuses on maximally satisfy customers needs and notify them about of the innovation in Prius development. Strategy includes using TV commercials, in which Toyotas advertising campaign brings an idea for customers: why they should purchase Toyota Prius, why it is a right choice? This helps to customers figure out with their needs and make a right decision. Using Public Relations helps to advertising campaign spread their message to the press relations and public affairs and attracts more consumers. Also Toyota works on personal selling and supports dealers to promote Prius. These strategies bring Toyota Prius on the top of selling and make this car popular from day to day. 4.4 Place Important factor is the distribution channel, as most of its production, Toyota offers through intermediaries. On this basis, the company created its own distribution channel. On the "Toyota" they are implemented through five of their own distribution channels - "Toyota", "Toypet", "uto", "Vista" and "Crown", ech of which srves a specific consumer segment and offer the consumer clearly assigned to his model cars. Prius as environmentally friendly car falls into gasoline free category. Toyota implements new technology of using hydrogen fuel cells. This technology means complete independence from gasoline. But this technology is immature and requires new distribution channel for hydrogen fuel. Next step of Toyotas company using but with higher efficiency by coupling to an electric motor, which is more economic and helps to company fast intrude to the target market. At this time Toyota has 16% of the worldwide market and Prius controls 75% of the market in such developed countries as USA, Japan and Germany. This shows important of Prius on the world trade market and distribution channels.5.0. ConclusionNowadays, Toyota considered as worlds most successful car corporation and its excellent marketing strategies provide interest among customers every day. Toyota corporation based on its concepts such as: segmentation, where include different segments like age, gender, income and not least, the geographical segmentation and behavioural segmentation; targeting, which specialize on almost entire population of the world from the age 16 80 and above; positioning is the use of the marketing to enable customers to form a better mental image on Toyotas product in their minds. Toyota Prius is the car which had unbelievable success in the U.S market, because of its conventional use and environmentally friendly concept. Target market of Prius can be divides on basic demographic, geographic, psychographic, behavioral segmentation variables. Also Prius develops marketing 4ps strategies, which help to attract customers and expand sales of car. All this well-organized and successful marketing plans brought Toyota Prius on the top of world most buyable car.

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Appendices 1.

Figure 1 Top selling Hybrid Electric Vehicles 2012 2.

3.Annual sales of other Prius family vehicles in the four top selling markets between 2011 and 2013 CYTD

CountryYearToyotaPrius v//+ToyotaAqua/Prius cToyotaPrius PHV

Japan2011215,500

2012266,56712,600

201380,665

USA20118,399

201240,66935,73312,750

20138,5259,8652,353

Europe2011

201210,988NA3,496

20133,7151,412

Canada2011553

20124,0772,53063

201356247786

Cumulative salesthrough March 2013Top markets292,988395,83732,760

Worldwide294,900409,50032,760

Notes: (1) CYTD: Calendar year to date sales, as of March 31, 2013.(2) No total by year is available for Prius because Toyota is reporting sales of regular Prius and Prius together.(3) Not be available in Europe, instead, Toyota is selling theToyota Yaris Hybrid, which shares the samepowertrain as the Prius c.36,600 Yaris Hybrids have been sold through March 2013.

Figure 3: Annual sales of Toyota Prius between 2011-2013

Figure 4: The Price-list of Toyota Prius between 2004-2011 Price by Model Year Chart The average price of a 2004 Toyota Prius is $13,244.00 The average price of a 2005 Toyota Prius is $13,435.00 The average price of a 2006 Toyota Prius is $13,491.00 The average price of a 2007 Toyota Prius is $16,491.00 The average price of a 2008 Toyota Prius is $19,301.00 The average price of a 2009 Toyota Prius is $22,399.00 The average price of a 2010 Toyota Prius is $25,013.00 The average price of a 2011 Toyota Prius is $30,200.00

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