Question 1 (20 marks)
Identify four actors in the microenvironment that affect the introduction and sale of the Toyota Prius and explain the role each of these actors played in Toyota’s strategy.
A company’s microenvironment consists of the actors close to the company that affect its ability to serve its customers. It is made up of the company, suppliers, marketing intermediaries, consumer markets, competitors and publics. The following are four actors that affect the introduction and sale of the Toyota Prius:
Customers:
Customers are the most important actors in the company’s microenvironment. Without customers, there would be no company. Toyota studied the consumer market and came up with a successful target market strategy. Their targeting strategy was one of the main reasons for the Prius’ success. In the beginning, Toyota focused on the early adapters and innovators who were most likely techies. Which, as it turned out, was completely right. Techies were attracted to the advance technology and were even able to modify the computer systems. Also, the tech savvy customers tend to be environmentally conscience, which the Prius is known for.
The second generation Prius was redesigned to have a broadened market focus. It had improved performance, power increase, new sleek design, and seven colors. It also featured a roomy interior, leg room, and storage space. It also included features found in luxury cards such as one touch button start and seven-inch touch screen monitor which showed when the car was running on gas, energy or regenerated energy. These features made it more appealing to the less technical market.
