...IC-TMT20121 PESTLE Analysis on Toyota Prius Abstract Toyota Prius Hybrid is using the Hybrid Synergy Drive (HSD) that perfectly optimizes power from both petrol engine and electric motor according to the driving condition. The electric vehicle (EV) which allows the vehicle run purely for low noise and zero fuel consumption [1]. The objective of our research paper is to investigate the factors that move Toyota Prius into production. The research is based on the PESTLE analysis (which is based on various factors like P-political, E-economy, S-social, T-technology, L-legal and E-environment) by using secondary data and qualitative analysis. In annuals ales worldwide since 1997 until 2011, Toyota Priusis performed well and popular in global market. Based on the analysis, Toyota Prius did move into hybrid vehicle production which influenced by the factors that mentioned above (PESTLE). Keyword: PESTLE, Toyota Prius. 1.0 Introduction Toyota Prius is a compact sedan which manufactured and developed by Toyota. Prius was named with meanings “ahead or leading” and “the predecessor of cars to come”. The first generation of Prius experienced great sales in US with 32% grow from2001 to 2003. It became the world first mass-produced gasoline electric hybrid car with aimed to reducing air pollution and increasing fuel efficiency. The second generation was redesigned as a mid-size lift back, with the redistributed on interior design and mechanical space significantly increasing luggage...
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...Toyota is a well-known brand, especially to me because I have a Toyota Camry that I love. I wanted to learn more about the green marketing strategy, and I decided to focus mostly on the Prius marketing strategies, as it is a “green” vehicle and becoming very popular. The Toyota Prius provides a concrete case study of this truth. While the biggest product differentiation of the Prius is a fuel efficient, hybrid engine, most people do not buy it because it is eco-friendly. We assert that Toyota succeeded by marketing the Prius on multiple factors including the potential for gas savings, appeal to those who desire the latest technology, crossing into multiple market segments, and keeping the car practical, attractive, and functional. If they had appealed solely on impact to the environment, they would have failed to generate significant market penetration. Toyota did not set out to create a hybrid car. Rather, the Chairman Eiji Toyoda was concerned about the increasing popularity of larger cars and of the effect it would have on pollution levels in increasingly congested cities. He was concerned about the threat of peak oil looming and believed that the traditional internal combustion engine would not successfully carry Toyota into the next century. It was a year into that effort that Toyota decided to adapt a hybrid approach to creating a car with a lower impact on the environment. Toyota was cautious in entering the American market (Itazaki, 1999). Toyota's first step was...
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...Analyzing the Marketing Environment Case Study Prius: Leading a Wave of Hybrids Micro-environmental Factors | Factors | How Toyota dealt with these factors | Company | Toyota first generation of Prius was small compacts car with unattractive exterior. Therefore they had to coordinate with other departments within the company such as Research and Development and marketing to introduce a new generation of Prius that could be more attractive to buyers (Gen II). | Suppliers | Following the successful launch of the Prius. It was in Toyotas best interest to coordinate with their strategic partners like suppliers to introduce a type of batteries that could be cheaper and result in lower prices, and consequently increase the demand. | Marketing Intermeddlers | Toyota was facing a shortage of the Prius which led to issues with the dealers who wanted more cars to sell. Toyota had to prepare some materials for the dealers and their sales person in order to sell the Prius, They also had to educate buyers how to drive the cars to obtain maximum fuel efficiency. | Customer | The case study shows that Toyota thoroughly studied the market for consumer and adjusted its marketing according to it. Toyota predicted that the purchasers of their cars would be techies. It was very evident that Toyota was absolutely right in its prediction. For this reason Toyota emphasized on the technology of the car and used the internet, therefore, promoting the environmental part. As for...
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...Company Case: Prius: Leading a Wave of Hybrids 1. What micro-environmental factors affected both the first generation and second generation models of Toyota Prius? How well has to Toyota dealt with these factors? In order for the reader to have an understanding of this question is important to begin by defining Micro-environment. This term is a factor of the Marketing Environment and it consists of the issues that, in one way or another, affect the company's ability to serve its clientele in a close and direct way. This includes factors such as customers, suppliers, competitors, shareholders, employees and media (among others). Having this in mind, it could be safe to state that the micro-environmental factors affecting the first and second generation of the Toyota Prius are the customers and the competitors. Consumers, getting affected by the gas prices, were looking for an answer to their prayers. Toyota gave them the answer, a vehicle that would allow people to save on gas as well as provide good and efficient service. Once the first generation Prius was released, although not too pretty or fancy, it served to its purposed and customers were buying it. The other factor, competitors, is pretty obvious. Everybody wants a piece of the pie. Auto makers such as Honda started developing and/or implementing the hybrid system on some of their vehicles. Toyota's answer was to keep developing what already has been a success, the Prius. A second generation was developed and...
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...Reflection and evaluation of the marketing principles using Toyota’s case study Introduction In this essay, I will reflect on my experience within Principles of Marketing module. To illustrate this I will use feedback obtained from my tutor, the information I have learnt from undergoing my presentation and verbal feedback from other group members. I will then briefly explain what the principles of marketing are and how these principles relate to modern marketing practices. I will address both the negative and positive feedback I received and explain how I will use the feedback to improve on my strengths and mend my weakness so that I may do better in future presentations. My view on the Principles of Marketing During Principles of Marketing module, I learnt that marketing principles is mainly about finding out what the consumer wants and going the extra mile to provide this at a high standard whether it’s goods or service. I understood that there are key elements involved with marketing process; the 4P’s for goods and the 7P’s for services. The 7P’s of the marketing mix are price, place, product, promotion, people, process and physical environment. By understanding, the marketing mix a corporation will have more knowledge about how to plan, distribute and promote their products. Without these fundamental elements, it is unlikely for managers to formulate a feasible marketing plan. For a business to be successful, an appropriate composition of the marketing mix...
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...Paper Group 2 Abstract This paper will provide an in-depth analysis of the Toyota Prius from a Marketing viewpoint. The research provides background information, market analysis, branding, services/ pricing and promotional information regarding the Toyota Prius. This paper provides the decision making and analytical processes necessary to implement a successful marketing program for the Toyota Prius. Description The Toyota Prius is considered a full size hybrid electric mid-size hatchback. The Prius design offers comfortable seating for five and has impressive cargo space, something lacking with its competitors. The Prius has an estimated fuel-efficiency rating of 50 mpg, when using the U.S. EPA combined cycle. This car is on the top of the list for the most fuel efficient cars on the market. With rising gas prices, this fuel efficient car is the most popular hybrid available to consumers today. The overall design of the Prius is characterized by a streamlined nose and curved roofline. This vehicle carries an impressive base price of about $19,000.00. The Prius has several models and trim packages to choose from allowing the customer more options in the current hybrid market. They have a standard model with a hatchback, a compact version and a new station wagon called the Prius V. “According to Hybrid Car Review (2012), “Toyota’s Hybrid Synergy Drive System allows the Prius V to travel at “in town” speeds on electric power alone. Sensors decide when to employ...
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...Toyota Hybrid Cars and Legal Issues Introduction Automobile industry is a faster growing industry nowadays than any other industry. Most car manufacturers face the challenge of providing the best quality products to remain competitive to retain or regain market share during this tough economic times. Every organization has the opportunity to make more profit than their competitors do by improving delivery method and its impact on the company’s turnover. Toyota Corporation has implemented different plans and techniques to remain competitive and make profit. One of the innovative plans Toyota Corp. created is the Prius. The Prius brought about a major revolution in car manufacturing industry, and opened a place in the market for hybrid vehicles. Although Toyota experiences worldwide successes, they are constantly under the watch full eyes of the general public and the government because of the many serious allegations and lawsuits brought against the Company. This paper will examine the first mover advantage of Toyota got by launching Prius. The initiatives undertaken by Toyota to bring their environmental friendly hybrid into the market will be discussed. Additionally, we will point out the many legal issues Toyota currently facing in the marketing environment. These issues will be analyzed and discussed in further detail such as: (1) intellectual property protection; (2) the legal and business concepts of ethics; (3) and the product liabilities and warranties...
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...Toyota Prius Marketing Plan Market Research Assignment Adam Dunphy Rachel MacKenzie Maura Woodman Kyle Wotton Professor BhaskerMukerji BSAD: 231 November 29, 2011 Toyota, the largest automotive manufacture in the world needed to take a leadership role in developing a more sustainable method of transportation. Toyota has a leadership role in quality control by bringinglean practices to the manufacturing process. The term lean was coined by Toyota to create flow in the workplace and the work environment (Wikipedia-Lean Manufacturing, 2013).Toyota is focused on making a product that will help the natural environment and cut down on waste. Our new line of Hybrids shows our corporate commitment to innovation and environmental sustainability. The following marketing programs outlines the ways in which Toyota will evaluate the macro-environment, determine a target market for the Hybrid line, as well as our plans for the product its self, a pricing strategy, our placement of the product as well as promotion efforts. One of the big questions is why? Why did we create this product; well it is simply because there was a massive demand for it. Oil prices are through the roof, and consumers do not want to spend their paychecks at the pumps. In 2008, there was a huge spike in the oil prices. This spike has temporarily decreased but oil prices are predicted to rise again soon. Both consumer households and government are demanding us to create a new product...
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...SAE TECHNICAL PAPER SERIES 2003-01-2307 A Comparative Study of the Production Applications of Hybrid Electric Powertrains Harry L. Husted Delphi Corporation Reprinted From: Hybrid Vehicle and Energy Storage Technologies (SP-1789) Future Transportation Technology Conference Costa Mesa, California June 23-25, 2003 400 Commonwealth Drive, Warrendale, PA 15096-0001 U.S.A. Tel: (724) 776-4841 Fax: (724) 776-5760 Web: www.sae.org All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of SAE. For permission and licensing requests contact: SAE Permissions 400 Commonwealth Drive Warrendale, PA 15096-0001-USA Email: permissions@sae.org Fax: 724-772-4891 Tel: 724-772-4028 For multiple print copies contact: SAE Customer Service Tel: 877-606-7323 (inside USA and Canada) Tel: 724-776-4970 (outside USA) Fax: 724-776-1615 Email: CustomerService@sae.org ISSN 0148-7191 Copyright © 2003 SAE International Positions and opinions advanced in this paper are those of the author(s) and not necessarily those of SAE. The author is solely responsible for the content of the paper. A process is available by which discussions will be printed with the paper if it is published in SAE Transactions. Persons wishing to submit papers to be considered for presentation or publication by SAE should send the manuscript...
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...TOYOTA: DRIVING THE MAINSTREAM MARKET TO PURCHASE HYBIRD ELECTRIC VEHICLES Table contents 1- Situation analysis ………………………………………………………3 a. The market ………………………………………………….……3 b. Micro-environment ………………………………………….……4 c. Macro-environment …...................................................................4 2- Answers to the questions …………………………….………………….4 1- Situation analysis Synopsis: Toyota the international automobile manufacturer is aiming to become the largest worldwide automaker, seeking to reach 15% of global sales. In this case, this company is trying to be leader of the hybrid-electric automotive. The challenge, here, is to change consumer perceptions and attitudes to reach the universal mainstream acceptance. Market: In the US, the auto industry is really vast. In 2001, consumers used more than 120 billion gallons of gas, costing $186 billion. Cars are very important for Americans, because they project the make and the model of their car as a reflection of their status and self-image. Recession happened between 2001 and 2003, which affected the new car sales; and a struggle was created for the major manufacturers to hold their leadership and positions with the new needs of the consumers and the strong environmental legislation and regulations in US. HEV combines existing technology with innovative new environmentally conscious technology. In 2003, Toyota had taken the lead in this HEV evolution; it had taken a strong approach to adapt...
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...Toyota Prius Case Study Background Information Introduction The Toyota Prius 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 emissions. The Prius first went on sale in Japan only in 1997, making it the first mass-produced hybrid vehicle. It was a "shakedown" model. Toyota like to extensively test any new technology on their own market, "close to home", to try and iron out any problems before they release it internationally. This is one of the reasons Toyota have the reputation of being the most reliable car maker in the world. There was about 70,000 Toyota Prius Generation 1 sold in Japan. A small number of these, significant by Toyota's standards, had problems with the battery pack. It was subsequently introduced worldwide in 2001. The Prius is sold in more than 70 countries and regions, with its largest markets being those of Japan and North America. In May 2008, global cumulative Prius sales reached the milestone 1 million vehicle mark, and in March 2011, the Prius reached worldwide cumulative sales of 3 million units. The U.S. is the largest market, with 1 million Priuses sold by early April 2011, and Japan reached the 1 million mark in August 2011. Since its launch in 2009, the third-generation model has sold more than 1 million units worldwide...
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...Team B Assesses Public Relations for Toyota SUA Recalls MKT/578 University Of Phoenix Team B Assesses Public Relations for Toyota SUA Recalls In August of 2009, an off duty California Highway Patrol officer and three family members died when their Lexus crashed after the accelerator pedal stuck. The car was traveling at a high rate of speed and could not be stopped according to a panicked call from the driver (MacKenzie and Evans, 2010). This tragedy kicked off a crisis for Toyota as it had to deal with accusations that a faulty accelerator pedal is what caused the crash. The company faced negative publicity from the media, the public and the NHTSA (National Highway Transportation Safety Administration) as a result of this accident and other accidents involving sudden unattended acceleration (SUA) from a stuck accelerator pedal. In response to these incidents and the publicity, Toyota eventually recalled 7.5 million vehicles to fix the stuck accelerator problem and shut down production of its effected vehicles until the problem could be solved. In this paper, Learning Team B has evaluated the role public relations played in this case and how the company could better prepare for a similar crisis. Problem Toyota realized it had a public opinion problem after numerous reports of “runaway” cars were claimed to have been caused by an accelerator pedal that would remain pressed down after the driver released the pedal. This resulted in the California accident...
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... • Market Segmentation (Chapter # 5) Rubric • Multiple choice questions that require students to show their work will receive 10 points for selecting the correct answer and (0 – 10) for showing the correct calculations, for a maximum total score of 20 points for each question. • Open ended question will receive (0- 20) points based on the clarity of the answer and the relevance of connections between the case study and the concepts covered in the course. Instructions 1. Read the mini-case. 2. Answer the multiple choice questions by selecting the correct answer. 3. Show all your work when requested. 4. Submit your assignment by the end of week 1. Case 1: The Prius Toyota recently introduced a hybrid automobile named Prius. Since its introduction, this offering has achieved a 1.2% market share in this market. Toyota has conducted research in an effort to assess its opportunity for market share development. The table below indicates consumers’ current response at each step along the share development path for Toyota’s Prius hybrid automobile as well as Toyota’s desired response at each step: |Share Performance |Current Response |Desired Response | |Director | | | |Product Awareness |0.70 |0.80 | |Product...
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...TOYOTA Building Cleaner, Greener Cars 1. How does Toyota’s approach to social responsibility relate to the three concepts of social responsibility described in the text (profit responsibility, stakeholder responsibility, and societal responsibility)? In the past, it was believed that companies simply had to serve shareholders by generating profits without any concern for other societal responsibilities. However, today's world expects companies to be concerned with more than profits; instead, companies must consider all stakeholders-the community and the environment in addition to capitalism focused solely on profit responsibility. Toyota has efficiently blended profit responsibility, stakeholder responsibility, and social responsibility in order to create a highly competitive, socially conscious, and profitable company. In terms of serving the organizations shareholders, Toyota has attended profit responsibility by becoming the worlds largest automotive manufacturer and the tenth largest corporation in the world. Profit responsibility entails making the right strategic and ethical move to produce larger profits. Toyota uses diversification like the Lexus line; memorable marketing campaigns, and new vehicle developments like Scion and the Prius to encourage sales that lead to greater profits. The company regularly produces vehicles that sell as the best in their class, leading to profits that are passed on to Toyota's shareholders. However, shareholders...
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...assignment Case 1 Prius Launch: Harmony Installations 2011 Bronze | Media Innovation Case 2 Canon Eos Cameras: Photography beyond the still 2011 Silver | Consumer Electronics Case 3 Southwest Airlines: Grab your bag it’s on/ Bags fly free 2011 Gold | Transportation Case 4 Ocean Spray Cranberries: Straight from the Bog 2008 Gold | Renaissance 2011 Silver | Sustained Success Case 5 Sears: Don’t just go back. Arrive 2010 Gold | Retail¬ Case 1 Prius Launch: Harmony Installations 2011 Bronze | Media Innovation GET: Echo/Tech friendly minded people WHO: Are environmentally and technologically aware and enjoy innovation. TO: Think Prius is the car they should buy versus the car they want to own. See Prius as an Icon of progress. Encourage consumers to put a Prius in the mainstream consideration set. BY: Outlining that hybrid motoring is good for the environment, endorsing the idea of being proud to own a Prius. LIKE THIS: By highlighting the “harmony between man, nature and machine”. Happiness, Optimism, Pride, Imagination SUCCESS: Desired 20% increase in sales of Prius. Increase hybrid vehicle market share. Engage social media metrics. $4.5m in earned media desired through Solar flower installations/social media. Market/Commercial insight The reported market decline in the Automotive Industry for passenger cars has declined by 37% in FY2011. Financial modelling of passenger vehicle purchase history by Toyota identified...
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