THE TO

YTOA HYB

RID PRIUS

B Y MA U R A , R

A C H E L , AD A M A

N D KY L E

OUR PRODUCT

$ 24, 200Four model levels

available 51/48 est. mpg

THE MACRO ENVIRONMENT

• Demographics• Economic trends• Natural Environment• Social Aspects• Technology

DEMOGRAPHICS

• The trend of Population Aging – due to increasing life expectancy and fertility below replacement levels

• Male to female ratio 99:100

• Working age population in Canada is 68% of total population

• Over age 80 is 4% of total population

Median age by gender, Statistics Canada

ECONOMY• Consumers want to consume.• Economic meltdown over the last

decade-Consumers buying luxury goods

• Costs to the consumer

NATURAL ENVIRONMENT

• Declining natural resources• Air pollution• Emissions

SOCIAL ASPECTS

• New ways of creating renewable energy as a consumer.

• Long term investments that will help you in the future.

Becoming Responsible consumers

TECHNOLOGY• Marketing of products online

-Consumers are able to shop from home

• Cutting down on search costs• Helping the environment

• The information age & technological revolution

ANTICIPATED MACRO-ENVIRONMENTAL CHANGES

Technology: Nissan, competing with our direct competitors. Natural environment: further depletion of natural resources

Demographics: growing disposable income of women

Social: Social pressure and desire to be a responsible consumer will continue to grow

THE TARGET MARKET

Strategic Planning Total Market

Market Segmentatio

nTarget Market

THE STRATEGIC PLAN

• A long run plan, revealing company objectives

• Survival and growth• Key for all subsequent market

planning

The goal: To create value for customers and build profitable customer relationships

THE TOTAL MARKET Who are Canadian Car drivers?

Number of Licensed drivers by gender and by age

The Income of Canadians

MARKET SEGMENTATION Different segments represent different types

of buyers

Different products presented through different marketing

programs

Needs

Characteristics

behaviors

The goal: To locate the segment of the market that will respond the same to marketing efforts, and have a distinct desire to own a Toyota Prius

THE TARGET MARKETWhere Toyota

can generate the most customer

value and sustain it over a long period of

time (1) Harris Interactive Study: Familiarity, and the likelihood of purchase• 23% familiar• 27% consideration• 84% plugging in vs. fueling up

(2) Scarborough Research: Current trends amongst Hybrid owners• $100 000 or more• Older• Educated• Liberal• Active

(3) Mindset Media: Psychological profile of Hybrid Drivers• Creative – inventive,

imaginative, emotionally sensitive, intellectually curious

• Proud advocates and leaders• Open minded, spontaneous

TARGET MARKET

For the sale of the 2014 Prius, Toyota has chosen to target Wealthy, Educated and

Creative people

Note: Toyota will be careful to avoid the green marketing myopia – the myopic focus on the

products ‘greenness’ over broader expectations of consumers

THE MARKETING STRATEGY - PRODUCT

• Type of good• Tangible good

• Strengths • Fuel efficient

• Weaknesses • Lack of power• Style

THE MARKETING STRATEGY – PRODUCT CONTINUED

Brand name Prius Brand image High tech & Environmentally

friendly Brand equity Commonly known product vs.

competitors

Augmented product Core product where additions products or services to

generate more revenue

BCG Analysis: Star

THE MARKETING STRATEGY- PRICEPricing

objectives – Product Mix

• Prius and Prius C, Prius V, Prius Plugin

Pricing Strategy• PenetrationPrius

Prius C

Prius V

Prius Plugi

n

THE MARKETING STRATEGY- PROMOTION

• C R E AT E AWA R E N E S S A N D P R E F E R E N C E

• G E A R P R O M O T I O N T O T H E W E A LT H Y , E D U C AT E D A N D C R E AT I V E

• I N F O R M AT I O N S U C H A S P R O D U C T , C O N S T R U C T I O N , F E AT U R E S , B E N E F I T S A N D D E S I G N .

• K E E P I N G TA R G E T M A R K E T I N F O R M E D

• A L LO W F O R T E S T D R I V E S

• Incentives: Company –0% financing for 2014 models, buy back

on older models.• Older models: $1500 cash bonus and between 2.99% and

5.99% finance rate depending on hybrid model

• Government - $1000 tax credit

THE MARKETING STRATEGY- PROMOTION

THE MARKETING STRATEGY- PROMOTIONTelevision commercialsBill BoardsPrinted adsNewspapersBuzz market – New features/benefits via social

media

Focus on the pull strategy (high advertising which will create demand for the hybrid car)

Promotional budget – objective and task method-Benefits for consumer/environment

THE MARKETING STRATEGY - PLACEAssembly of car in JapanShipped to British Columbia and transported to 5

warehouses throughout Canada.Vancouver, Winnipeg, Toronto, Montreal, Moncton.Car dealerships purchase cars from warehouses in

designated area.Computer systems monitor inventories, estimates

of cars predicted to sellUse integrated logistic management (teamwork

essential)

THANK YOU

Questions?