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Welcome to Our

Presentation

A presentation on

Marketing Environment of

Prius :Leading a Wave of Hybrids

Prepared forMd. Mukhlesur Rahman

LecturerDepartment of Finance

University of Dhaka

Team Profile

Name ID

K. M. Najmus Sakib 16-020

Mobasheera Tasnim 16-052

Md. Kamrul Islam 16-090

Rajib Kumar Deb 16-106

Shaykha Sultana 16-160

Md. Shamsul Alam 16-172

Case Overview

This case is about Toyota Motor Corporation (TMC), world’s no 1 motor car producer.

One of their most selling car is Prius.

This case study discusses the environmental actors (both microenvironment & macro environment) of the Toyota Prius.

Theoretical background

Marketing Environment

The actors and forces outside marketing that

affect marketing management .

Microenvironment

Macro environment

Microenvironment

The actors that close to the company that affect its ability to serve its customers.

The Company

Suppliers

Marketing intermediaries

Competitors

Publics

Customers

Macro environment

The larger societal forces that affect the microenvironment.

Demographic

Economic

Natural

Technological

Political

Cultural

TOYOTA Profile

Toyota Motor Corporation commonly known simply as Toyota and abbreviated as TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan.

TMC is the world's largest automobile manufacturer by salesand production.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles.

Prius Profile (A Hybrid car)

The Toyota Prius (pronounced as priːəs/) (plural: Prii, pronounced as ˈpriːaɪ/) is a full hybrid electric mid-size hatchback, formerly a compact sedan developed and manufactured by the Toyota Motor Corporation. The

EPA and California Air Resources Board(CARB) rate the Prius as among

the cleanest vehicles sold in the United States based on smog forming

and toxic emissions.

Prius Series

1 First generation (XW10; 1997–2003)

2 Second generation (XW20; 2003–2009)

3 Third generation (XW30; 2009–present)

1. What micro-environmental factors aff ected both the fi rst generation and second generation models of Toyota Prius? How well has to Toyota dealt with these factors?

•The micro-environmental factors affecting the first and second generation of the Toyota Prius are the customers and the competitors.

•Consumers, affected by the gas prices as Toyota gave them a vehicle that would allow people to save on gas as well as provide good and effi cient service.

•Prius, although not too pretty or fancy in the first generation, it served to its purposed and customers were buying it.

Solution to Ques. no 1(Continued)

• Competitors, wants a piece of the pie.

•Honda started developing and/or implementing the hybrid system.

•Toyota was trying to keep developing what already has been a success, the Prius.

•A second generation was developed, even more fuel effi cient, more technical advances, more room and several other factors.

2. Outline the major macro-environmental factors – demographic, economic, natural, political and cultural - that have aff ected the Prius sales. How well Toyota dealt with each of these factors?

Demographics The study of human

societies in terms of size, location, gender or race among other statistics.

Based on these factors organizations develop marketing plans to target possible customers.

Economics Economics is the study

of how society chooses to use its resources.

This factors contributes to the government and other entities to off er incentives towards buying vehicles such as the Prius.

We believe the macro-environmental factor that affected the Prius sales (in a positive way) is the natural forces, technology force, pollution free.

Natural

This macro-environmental factor involves the use of natural resources to increase the interest of the customers.

. Societies have a great interest and feel very positive about saving the planet.

Toyota's marketing team has utilized such factor in a very positive way to cause sensation about the vehicle.

Technological

New technologies are hitting society constantly.

Toyota, using technology, made customers aware of upcoming vehicle.

. Utilizing tools such as the Internet it distributes brochures and all types of information about the Prius previous to its release.

Political

a society is nothing without government and its laws.

Toyota, along and other auto makers were able to obtain tax and other incentives for people who would buy the hybrid vehicles.

Buying Prius Anyone can save tax on gas and can also save on oil(when using gas).

Cultural

This force along with demographics would set a base for what customers are interested in.

Toyota's strategy hit society in what could probably be the best time. Gas prices are high and people drive vehicles that are not economical.

Society is in the need of change and Toyota was offering a solution.

3. Evaluate Toyota's marketing strategy so far. What has Toyota done well? How might it improve its strategy?

Toyota brought a new product with a fairly strong marketing strategy.

The only problem was that the vehicle's target range is limited.

The first generation of Prius was very simple and basic and it did not provided all those benefits and gadgets that come standard in many vehicles .

Solution to Ques. no 3

(Continued) The second generation brought a lot

of changes, specifically technological advances including bit more of luxury and better style.

Toyota is heading into the right direction in regards of its marketing strategies.

The Prius seems to be improving greatly in technological advances by not only running more miles per gallon but also full of gadgets that make people interested about it.

4. 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?

I would agree with Mr. Stewart.

Let’s see why

1972 Chevrolet

Nova

1988 Pontiac Fiero

1995-Mitsubishi-

3000GT

Solution to Ques. no 4

(Continued) Americans don’t buy a car just because it’s fuel

efficient.

That’s the reason 1st gen of Prius was not much of a success.

But the 2nd gen of Prius was a market hit, because it was able to attract people by technology & luxury.

Now, if we think about an SUV with Hybrid engine people would be interested because it will go with their choice and it will also help to save gas.

ConclusionAfter studying this case, we have understood the

following key factors:

How two important microenvironment factors-customers & competitors has affected the sales of Prius.

How major macro-environmental factors – demographic, economic, natural, political and cultural - have affected the Prius sales .

What type of tactics Toyota used to handle different marketing environments.

And most importantly, we learnt the usefulness of analyzing marketing environments and how to develop better marketing strategies to satisfy customers.

Any Queries???

Thanks for Your patience.