Toyota Prius Case Study

1) The Toyota Prius’ marketing campaign had to deal with a number of micro environmental factors. When it started the Prius was a small, sluggish, hybrid vehicle in a market where size and horsepower were the benchmarks of if a car is good or not. The design of the Prius made it slow to accelerate and the opposite of a muscle car. To deal with this Toyota focused on an Asian-inspired design and aesthetically it was much nicer than the first generation. Toyota also made the car more roomy and practical, with lots of legroom for the rear passenger and storage space. Toyota also made another model the Gen 11 Prius to appeal to consumers who wanted a more high-class car. They added several expensive touches typically found in luxury vehicles. While faced with those factors of having a small, sluggish car, they focused on what else mattered. They had a stylish design so it was visually appealing, the car had an astounding fuel economy so it was economically appealing and they added a lot of technology so it was seen as modern and futuristic. By focusing on and improving these factors the Prius saw moderate growth at first and eventually grew it into one of their most successful cars. In a time when other car companies were adding incentives and discounts on their models, Toyota was able to mark up the Prius up to $5000 over the sticker price.

2) In terms of macro environmental factors Toyota faced several with the Prius. In terms of demographic factors the car culture in America was long focused around gas guzzling, large, loud, high horse power cars. Economically the 2000’s had significant economic downturn and job losses, in addition oil and gas prices were quickly climbing. This benefitted Toyota because they were able to offer a car that had an astounding fuel economy. The Prius’ technology reflected it’s innovation, Consumers are excited by new innovative technology, the Prius capitalized on this and on top of being a hybrid put the newest technology in its car such as push button start, touch screen monitors with displays for fuel consumption, temperature and more. Politically the Prius was very appealing to governments, it was economically friendly, and in response steates allowed hybrids to drive in high occupancy vehicle lanes even if there was just one occupant. Some cities also allowed Prius to park for free. However the federal government also have huge tax breaks in the range of thousands of dollars to Prius owners.

3) Toyota’s marketing strategy so well has been very impressive. The Prius entered the market and was looked at as almost a joke, it eventually