Toyota Prius Plug-In Hybrid
Fabin Gonzalez, Mario Simms, Welby Gonzlez, Jillian Perry
Prof. Jos Mora
MKT 311-02
May 7, 2013
Table of Contents
1. Organization & the Business Environment…………………….……….3
2. Market…………………………………………………………………….4
3. Customers/Segmentation……………..………………………..………..6
4. Competitors………………………………………………………………7
5. SWOT Analysis………………………………………………….……….9
6. Targeting………….………………………………………………..……..12
7. Perceptual Mapping..……………………………………………….……13
8. Perceptual Positioning……………………………………………………14
9. Marketing Mix……………………………………………………………15
10. Bibliography………………………………………………………………18
11. Appendices……………………………………………………………….19
Organization and Business Environment:
The Toyota Motor Corporation mission statement is “To attract and attain customers with
high valued products and services and the most satisfying ownership experience in
America.” The vision statement for Toyota Motor Corporation is “To be the most
successful and respected car company in America.” Toyota’s global sustainable
competitive advantage is based on a corporate philosophy known as the Toyota Production
System (TPS). “The system depends in part on a human resources management policy that
stimulates employee creativity and loyalty but also on a highly efficient network of
suppliers and components manufacturers” (100ventures, 2013). TPS is the most systematic
and highly developed example of what the principles of the Toyota Way can accomplish.
The Toyota Way consists of foundational principles of the Toyota culture, which allows the
TPS to function so efficiently (Toyota, 2013).
The Business Environment can broadly be categorized into two different categories of
micro and macro environment. The factors affecting the micro environment are the
suppliers, the customers, and the competitors. The factors affecting the macro environment
are the economic, political, social, and technological environments. All these factors or
elements create opportunities and possess threats to the business. The business
environment of Toyota includes factors such as economic growth and consumer attitudes
towards the company becoming greener. One of the factors from the micro business
environment includes, “through TogetherGreen, volunteers have planted over 135,000
trees and shrubs and improved or restored almost 13,000 acres” (Toyota 2013). One of the
many factors from the macro business environment includes, “the sales of Toyota and
Lexus hybrids globally since 1997 have resulted in a 26 million ton reduction in CO2
emissions when compared with what would have been emitted by gasoline-powered
vehicles of similar size and driving performance, when identically driven and maintained”
( Toyota, 2013). To establish a society in harmony with nature, we reduce the
environmental impact at all stages of vehicle life cycle from development and design,
procurement, production and logistics, sales to waste and recycling, and promote
environmental management.
Market:
As new generations come to the market the concern towards the environment will keep
escalating, driving the demand to increase for hybrids. Therefore there are different types
of consumer who meets these needs. People that are going greener/ concern with global
warming, more moderate income, increase in education, people that wants to live in a safe
world, and future generations. The market has already shown that places such as San
Francisco, San Jose, Salinas, Santa Barbara, Portland and etc. has dramatically increased
their sales throughout the years. Throughout the whole U.S population according to
Mintel, 34 percent of consumers between ages twenty five to sixty are willing to go the
extra mile to spend more money on a hybrid car. Mostly these households are well
educated with a bachelor degree or higher who are earning enough money to be able to
spend more for a hybrid. They are mostly in a professional/administrative occupation, high
managerial, or engineering and are classified as upper-middle class.
With much research we were able to come with a conclusion in how many hybrids will
enter the U.S market in the future. We first wanted to get an idea how much the market
was worth including all the population in the US. This will make it easier to compare to
our segmentation market, which will be explained later in the report. According to the J.D
Power forecasting graph below we were able to estimate approximately a little over eleven
million HEVs and PHEVs total units sales in the U.S from 2013-2020. We kept it simple
and measured how much the whole market is worth for the next two years. Drawing a line
in the graph to the amount of sales we estimated that in 2014 to 2015 there would be a total
of 2,875,000 million new hybrids in the market. An average for all the hybrids is selling
for around the same price as our hybrid ($32,000). We can estimate that the market in two
years will be worth approximately 92 billion dollars. We were able to come to this
conclusion by multiplying average amount of the cost to the total amount of sales. Now
that we know how much the whole market for hybrids is worth, we were ready to compare
our market to the whole market. We did this by breaking our Market into different
segmentation that meets our Hybrid Plug-in premium.
Although there were different segmentation we could target such as; demographics
(income, age, education) and Geographic. As we did research we concluded that we were
only going to focus on household age’s income from sixty thousand to a hundred thousand
that live in Metropolitan areas. We chose these segmentation variables because these are
the group that makes up most of our Toyota Hybrid Plug-in market. Households earning
(60-100 thousand dollars) plays an important role because they are the people that can
afford a hybrid since the economy is still recovering from the recession. Metropolitan are
the areas that are mostly congested with high prices of gas and with more pollution
creating a higher demand for hybrids. Choosing ages was important factor because each
