1. Who would you identify as the Prius’s key competitors, if
any, with regards to the hybrid car market?
The main competitors of the Prius Plug-In are the following
cars:
Nissan Leaf
Chevrolet Volt
The Plug-in models will also compete with the Nissan Leaf
and even more so with the Chevrolet Volt. Although the 2011 Volt did not
qualify to use the HOV lanes in California and other states, the 2012 Volt will
likely qualify, which would remove the Prius Plug-ins’ competitive advantage.
The Prius Plug-in Hybrid sells for $32,000, so much less
than competitors like the Chevy Volt or the Nissan LEAF (after its $7,500 tax
credit. The Toyota Prius Plug-in Hybrid’s 4.4 kilowatt-hour battery pack will
provide up to 15 all-electric miles after a full charge. The Prius Plug-In
blends the use of gasoline with all-electric propulsion. The Prius Plug-in
Hybrid can stay in all-electric mode, up to 62 miles-per-hour. But the car will
fire up its gas engine at any sign of real acceleration.
The primary benefit of plug-in hybrids is that it can travel
purely on electricity for many miles—but that it eliminates any worries about
EV range or the need for electric vehicle infrastructure. When the battery
drains, the car becomes a conventional hybrid with range comparable or better
than gas cars—and with the ability to pump in petroleum when you need more.
That convenience is real and important—as is the ability for
the Plug-in Prius to fully charge with a standard 110-volt outlet in 3.5 to 4
hours; 240-volt charger, supplied by Leviton, cut charge times down to 1.5
hours.
This car is much roomier than a LEAF or Volt. At the same
time, the efficiency of the Prius-with-plug after the battery is drained is an
estimated 49 mpg; better than the Chevy Volt’s so-called “charge-sustaining”
mileage of 37 mpg.
All of this bodes well for sales of the Toyota Prius Plug-in
Hybrid—especially considering the strong loyalty found among the more than 1
million Prius owners in the U.S.—who have taken a first step toward electric
mobility and want a bit more.
Toyota will also sell an “Advanced” Plug-in Hybrid with
bonus features such as heads-up display, a nice audio system, and LED
headlamps. That one goes for $39,525, minus the tax credit. Bob Carter, group
vice president and general manager of Toyota Motor Sales, U.S.A., told me on
Friday—in Richmond, Calif. where the pricing was announced—that Toyota expects
70 percent of the expected 15,000 Prius Plug-in Hybrid sold in the first year
to be the lower priced version.
The Prius Plug-in is available in five exterior colors and
will be offered in two trim levels. The standard trim comes with automatic
climate control, keyless entry, LED daytime lights, heated front seats, and new
driver feedback screens. The advanced trim adds eight-way adjustable power
driver seat, JBL audio and HDD navigation system with Toyota’s Entune
multimedia system with smartphone applications (like Open Table, Bing and
Movietickets.com), pre-collision warning system, Safety Connect system which
connects the driver to a live operator to dispatch emergency vehicles in case
if needed, a stolen vehicle locator among other features. Other standard safety
features include enhanced vehicle stability and traction control, anti-lock
braking system, brake assist, and seven airbags.
2. In your opinion, what are the distinctive competencies,
if any, that the Toyota has with their current line of Prius hybrid cars AND
are any of these distinctive competencies likely to become or remain
competitive advantages over time?
Toyota Prius Plug-In – $32,000 & Plug-In Advanced
$39,525 – A new form of hybrid; combining the already wildly popular Hybrid
Synergy Drive system – a platform that earns 52 mpg in the city and has already
sold over three million units worldwide in its short, dozen-year life – with a
new all-electric driving platform, the 2012 Toyota Prius Plug-in is sure to be
another step forward in the fight against rising gasoline costs, global
warming, and carbon emissions. Toyota’s plug-in electric doesn’t have the same
all-EV range as the Volt, but the Toyota is much less expensive. City 87/Hwy
49; Engine 4-Cyl, Hybrid, 1.8 Liter. Plug-in hybrids, like the 2012 Toyota
Prius Plug-In Hybrid, skirt this issue by taking established hybrid technology
and embellishing it with pure electric drive. In theory, it’s the best of both
worlds: full electric propulsion to minimize gasoline consumption, and a
time-tested fuel burner that kicks in when the electrons run out.
The following distinctive competencies are likely to remain
competitive advantages over time.
1) Toyota Prius Plug-in qualifies for HOV status in the key
state of California
2) More potent lithium-ion pack – advanced
lithium-ionbattery made by Sanyo (now owned by Toyota’s long-time battery
partner Panasonic).
3) New batteries can be fully charged in three hours from a
simple household 110-volt outlet or an hour and a half from a 220-volt plug.
4) Upgraded 240V Leviton charging unit, this means Prius
Plug-in owners will be up and running in EV mode in no time.
5) Battery swap allows for more miles on electricity alone
and a commensurate boost in real-world fuel economy. Once the battery pack is
depleted, the car reverts to the conventional hybrid function of the standard
Prius.
6) Prius PHV with a full charge can travel up to 13 miles in
electric mode, which becomes considerably more novel the faster one travels
7) Smaller battery pack than the Leaf & the Volt.
however, giving it 12 to 15 miles of electric range.
8) Not necessarily continuous electric range, as it is in
the Leaf and Volt. Like a standard Prius hybrid, the Prius Plug-In switches on
its engine to drive the wheels under demanding conditions. This means, even if
you have 10 miles of electric range remaining–an uphill freeway on-ramp will
switch on the engine at full howl when you floor the accelerator to merge into
fast-moving traffic.And once the engine has switched on for the first time, it
will stay on for at least a minute or so, even if you revert to slow speeds and
gentle acceleration. That’s to make sure the catalytic converter is properly
heated up, since engines emit far more pollution from a cold start until the
catalyst reaches several hundred degrees than they do at any other time.
9) Electron feed, bringing overall fuel economy up to 68 mpg
for the trip, an increase of more than 50 percent from older Prius models.
10) You can expect, at this point in time, to get up to 475
miles on a single tank of gasoline after the electricity is depleted and not
counting any energy the battery recovers from the car’s regenerative braking
system.
11) Heated seats, passive entry system with push-button
start, touch-screen, navigation, backup camera, Entune multimedia system and a
remote-controlled air-conditioning system that can precondition the cabin using
either grid power or the Prius’ battery.
The Prius Plug-in is priced lower than the Volt and can
recharge much quicker (three hours vs. 10) using a standard 120-volt outlet.
The Prius Plug-in also seats five, whereas the Volt has four seats. Just like
the Volt, drivers going short distances for local driving will see the biggest
advantage, as the car will run in electric mode first, and switches to hybrid
mode only after the battery is depleted. The vehicle is estimated to achieve 49
mpg in hybrid mode with an overall fuel economy rating of 87 MPGe. The hybrid
system is more or less the same as the current, standard Prius, and contains a
1.8-liter, four-cylinder engine that produces a total of 134 horsepower.
All-electric mode will work only at speeds of up to 62 mph; otherwise, the
hybrid will get 49 mpg in either city or highway driving. That’s a 2-mpg loss
for city mileage but a 1-mpg improvement for highway mileage compared with the
regular Prius.Like the Volt and Leaf, it plugs into the wall to recharge its
battery pack.The Advanced has an additional pre-collision warning system.
3. In your opinion, what are the distinctive competencies,
if any, that each of the Prius’s key competitors enjoy in hybrid car market and
are any of these distinctive competencies likely to become or remain
competitive advantages over time?
Nissan Leaf – $36,050 – Nissan was the first mainstream
automaker with an all-electric car, the Leaf. Refreshingly, the Leaf behaves
like an ordinary car, for the most part, except for the exceptional quietness
while accelerating. City 106/Hwy 92, Engine AC Electric Motor. The Nissan LEAF
EV (electric vehicle) ushers in a new dawn of clean, eco-friendly non-oil
burners. While the range of the 2012 Nissan LEAF electric car can’t match that
of a conventional gasoline-powered hybrid (or even that of a plug-in hybrid like
the Chevrolet Volt), it can tackle the normal driving range most people cover
in a day, or roughly 100 miles before needing to be recharged. The 2012 Nissan
LEAF gains heated front and rear seats, a heated steering wheel, battery
heater, heated outside mirrors and rear-seat HVAC ducts. The SL trim receives a
Quick Charge Port. Although the 2012 Nissan LEAF SV electric car carries a
Manufacturer’s Suggested Retail Price (MSRP) of around $36,000, that figure is
subject to any number of federal and state incentives aimed at fostering
consumer support for this new generation of electric and plug-in vehicles.
Beyond a $7,500 federal income tax credit, the LEAF is currently eligible for
$4,500-$6,000 in direct rebates from various states where it will be sold as well
as several other supplemental spiffs from local jurisdictions and energy
providers. The LEAF offers an impressive cost/benefit ratio, particularly
compared to the new Chevrolet Volt, an extended-range electric that stickers
close to $41,000 before incentives.
Chevrolet Volt – $41,000 – The same price as the Chevrolet
Volt was Motor Trend’s 2011 Car of the Year. The plug-in electric hatchback
seats four and can run about 40 miles before needing help from its internal
combustion engine. City 95/Hwy 93, Engine AC Electric Motor. The 2012 Chevrolet
Volt electric’s propulsion system consists of an electric drive unit that makes
149 horsepower and 273 lb-ft of torque, a 16kWh liquid-cooled lithium-ion
(Li-ion) battery pack and a 1.4-liter/84-horsepower in-line 4-cylinder
internal-combustion “range-extender.” The latter takes over when
battery charge decreases to a certain level – normally after 25-50 miles of
driving – and generates on-the-fly electricity for another 344 miles.
Replenishing the battery pack takes 10-12 hours using a standard 110V outlet or
three to four hours on a 240V dedicated unit. The Volt has three operating
modes. Normal is the most efficient, Sport provides more direct accelerator
response and Mountain, which requires 10-15 minutes of advance engagement but
optimizes the battery to cope with increased energy demands caused by extended
steep grades. The Volt has earned a 93 MPGe (miles-per-gallon equivalent)
combined city/highway EPA rating in pure EV mode and returns 37 mpg when the
range-extender kicks in. Even when you factor in the potential $7,500 federal
tax credit, it remains a vehicle with laudable – but for many
budget-constrained consumers – limited appeal. Leasing may be one way to keep
your monthly costs to a minimum. Although Chevrolet projects a full recharge
will run only about $1.50 per day, the cost of dedicated 240V home charger to
replace the standard 110V cable will run $490 plus installation.
The Volt has a much larger battery with longer range than
the Prius Plug-in and can go 25-50 miles using only electricity before a
gasoline generator kicks in, versus 15 miles for the Prius Plug-in.
4. When Toyota entered the hybrid car market in 2000 with
the Prius, which one of the nine corporate growth strategies was Toyota primarily
following at that time?
When Toyota entered the market in 2000 they were following
the Product Development Strategy. Toyota has developed a new product, a hybrid
vehicle that they have not offered before to their current market that drives
the regular Toyota vehicle. Maybe the current Toyota customers back in 2000
wanted more options such as higher mpg, combination of gasoline &
electricity in a car, saving money on gas, less energy consumption and cleaner
air environment. Back in 2000, Toyota cleverly designed a power delivery system
that seamlessly uses power from the electric motor in conjunction with the gas
engine or solely the gas engine powering the wheels, while simultaneously
charging the batteries or with solely the electric motor driving the front
wheels. The first line of Prius was rated as a SULEV, or Super Ultra Low
Emission Vehicle. That is 90 % cleaner than vehicles that are classified as an
LEV and 75% cleaner than ULEV classification. The Prius is as close to a zero
emitter as you can get and for all intents and purposes it is a zero emitter as
electricity for ZEV cars comes from power plants. ZEVs do emit less relative to
their power source, but with the SULEV technology, down to the very short
strokes as to cleanliness. The first line of Prius is considered Product
Development Strategy since this is a new technologically advanced vehicle and a
new product that Toyota is offering its current market.
5. When Toyota released their new Prius Plug In in November
2011, which one of the nine corporate growth strategies was Toyota following at
that time?
In November 2011 Toyota implemented the Product Development
Strategy for the Prius Plug In. Back in 2000 when Toyota Prius was born, it
became first Toyota hybrid. Since then, Toyota introduced a few more models of
the Prius hybrids. but it’s the Prius that remains the unofficial greenmobile
for Toyota and the world. Naturally, then, the Prius is set to become the first
Toyota to make the next big leap in fuel efficiency for 2012 by going plug-in
with the new Prius PHV, or “plug-in hybrid vehicle.” The newer model is the
first-ever Prius Plug-in Hybrid, combines the benefits of the third-generation
Prius Liftback’s Hybrid Synergy Drive with extended electric vehicle (EV)
range, in a package that is priced more competitively than any plug-in hybrid
or pure EV on the market. Toyota will also modify the look, style and
technology that the older model of Prius do not currently offer. Toyota is also
following the Product Development Strategy when they offer the Prius Plug-In to
its current customers in 2012.
6. In your opinion, which of Porter’s Competitive Strategies
do you recommend Toyota follow for their 2013 marketing plan for their Prius
line of hybrid cars?
For the 2013 marketing plan Toyota should use the Focus
& Overall Cost Leadership Strategy. Toyota followed the focus/overall cost
leadership strategy by offering a unique product, Prius Plug-In models through
differentiation and it offers its customer a price lower than its competition.
Its consumers are drivers who want to save money on the product and rising gas
prices and at the same time serving other consumers that are environmentally
conscious. Toyota has the competitive advantage on the Prius Plug-Ins and has
the ability to under price the competition. The technologically advanced Prius
Plug-In and Plug-In Advanced offers and meets the needs of all its market
segments. Currently Toyota owns 51% market share of the hybrid vehicle market.
It can increase its market share by implementing the focus/low cost strategy in
2013.
7. Recommend a suggested set of segments that covers the
“entire” hybrid car market in the United States? (In essence develop and
describe a creative set of segments for the “entire” market paying attention to
the criteria provided in the lecture notes for effective segmentation)
Market Segment:
Smart Commutersare any males and females ages 18 yrs. old to
65 yrs. old who drives to and from work, to and from school or to and from any
destination they wish to go to. According to Department of Transportation,
there were more than 250 million licensed drivers in the United States. What
makes this country great is having the freedom of going from one place to the
other without any worries of the reliability of their vehicle. Smart Commuters
are careful on how they spend their money on gas and they often carpool.
Eco-Drivers are any males and females ages 25 yrs. old to 65
yrs. old who are environmentally friendly and these individuals really care
about the cleanliness of our surroundings. According to the stateoftheair.org,
scientists claimed that Ozone pollution is the most widespread pollutant in the
U.S. is also one of the most dangerous. Hundreds of research studies have
confirmed that ozone harms people at levels currently found in the United
States. Ozone (O3) is an extremely reactive gas molecule composed of three
oxygen atoms. It is the primary ingredient of smog air pollution and is very
harmful to breathe. Ozone mainly comes from the tailpipe of a car.
Baby Boomers are males and females born between 1946 and
1964, ages 47 yrs. old to 65 yrs. old. According to babyboomerresource.com,
there are approximately 77.6 million baby boomers in the U.S. in 2011. The baby
boom phenomenon is responsible for over half of all consumer spending in the
United States. Baby boomers account for 28% of the U.S. population (The U.S.
Census). Baby Boomers usually are at the age where they can afford to purchase
what they want and are in better shape financially than the younger generation.
8. Using your proposed set of segments for the hybrid market
in Q7, recommend to Toyota the specific target market strategy to pursue in
2013 for its proposed line of Prius hybrid cars? (This is critical. Which
target market segments, if any, do you recommend they focus on the most?)
I would recommend for Toyota to target both the Smart
Commuters & Eco-Drivers.
Smart Commuters because this has the biggest market segment
in comparison to the Eco-drivers and Baby Boomers covering a bigger age range
of all males and females from ages 18 yrs old to 65 yrs. old. This segment
consists of all the drivers on the road who are cost conscious of the soaring
gas prices. When gas prices usually increase during the summer months, they
tend to carpool either to and from work or to and from school. These
individuals are economical and they hate to lose their money on something they
are unable to control such as the out-of-control fuel prices. This will be a
good target market for Toyota since the majority of the drivers in the U.S. are
being negatively affected through their finances by the rising gas prices.
Eco-Drivers(males & females ages 25-65 yrs. old) because
this market segment feels they have a social responsibility as individuals to
care and do something to contribute to the cleanliness of our surroundings. The
Eco-Drivers considers themselves as environmentalists and are always trying to
find ways to help the environment so our planet will still be a healthy place
to live for our children’s future. Vehicle emissions contribute to the
increasing concentration of gases that are leading to climate change.
Developments in the media made “go green” the slogan for action to
limit the adverse effects of air pollution. Green refers to the color of
chlorophyll in plants. Chlorophyll is the basis of photosynthesis that allows
plants to turn the sun’s energy into life energy. Human action destroys plants
and replaces healthy ecosystems with concrete and asphalt. Another slogan that
emerged was “save planet earth.” Humans will not save the planet. The
task for humans is to stop destroying the environments that sustain themselves.
This will be a good target market for Toyota since both the media and the
government supports our country in going green.
9. Using your expertise as a marketing consultant, estimate
both the unit and dollar amounts for the “industry” sales forecast for the
total hybrid car market in the United States for the year 2013? (Even with
research you will probably have to make some assumptions in coming up with an
industry forecast for 2013. Show your work and/or cite sources)
According to hybrid.com, the hybrid market has been
increasing year-over-year starting from the initial period of 1999. From 1999
to 2011, there were a total of 2,157,723 units of hybrid cars sold in the
United States. With the introduction of Prius Plug starting in March of 2012
along with introduction of other hybrid cars, we are projecting an increase of
10% vs. 2011. Year 2013 is projected to increase 15% from 2012.
The highest year for hybrid cars was in 2007 with 352,274
units and $11.3B favorable impact, then we see the decline due to the recession
in the economy. I believe we will gain more traction in 2012 & 2013 with
more drivers switching to hybrid vehicles with the continued rise in gas prices
and the negative impact of smog in our environment.
*Assumption of $32,000 per vehicle multiplied by the Actual
Units retrieved from:
Source: http://www.hybridcars.com
10. Based on your target market recommendations in Q8, which
of the “Five Patterns of Target Market Selection”, if any, comes closest to
reflecting the pattern to be followed by Toyota in 2013 for its Prius product
line?
With Toyota targeting both the Smart Commuters and the
Eco-Drivers, this would fall under Selective Specialization from one of the
Five Patterns of Target Market Selection. The marketing mix such as the
promotion or advertising may differ for Smart Commuters as opposed to
Eco-Drivers. For example, Toyota can have a commercial with the digits going up
in a gas station reflecting the soaring gas prices to target the Smart
Commuters. Another commercial can be introduced where the hybrid is going
through a nature park with trees or a road on the side of the mountain to
promote the hybrid vehicle as an environmentally friendly car for the
Eco-Drivers. The Prius Plug-In will satisfy the needs of these two different
market segments. The same product can be marketed differently in these two
different market segments with differentiated strategy.
11. In your opinion as a marketing expert, what are the key
needs and wants of consumers in each of your recommended target market segments
proposed in Q8 for the hybrid car market? (Remember if you target multiple
segments they should have different needs or wants otherwise why segment?)
Smart Commuters would prefer the following features in a
hybrid car:
87 MPGe (miles per gallon equivalent) in combined driving
and 49 MPG in hybrid mode.
Lower price than the competition
Better fuel economy
Up to 15 miles at speeds up to 62 mph
Shorter battery charge time
Battery can be plugged in 120v or 240v at home
Multimedia System-available smartphone applications,
Charging Station Map, Vehicle Finder and Eco Dashboard.
Efficient horsepower
Comfortable ride
Eco-Drivers would prefer the following features in a hybrid
car:
Very low emissions
Extended electric vehicle (EV)
Specialized continuously variable transmission (CVT).
Seamlessly switch into hybrid operation at a pre-determined
state of battery charge
Battery pack features advanced lithium-ion technology
LED taillights
Entune smartphone and Web integration system
Uses a smaller battery pack that offers increased range at
half the weight.
Provide a hyper-quiet cabin
Eco Dashboard
12. Recommend a positioning statement or value proposition
for Toyota’s Prius line of hybrid cars to use in next year’s marketing efforts?
(try to keep any statement to 50 words or less. You can provide support as
separate paragraphs)
Positioning Statement: With the gas prices soaring and smog
polluting our surroundings and negatively affecting our health, how can we
drive with no worries? For the smart driver who wants to drive a car that’s
environmentally friendly, convenient, efficient and reliable. “Drive with no
worries by being Green with Toyota Prius Plug-In.”
Explanation: Our nation is facing a dilemma of being
dependent on outside countries in supplying our fuel. With our country in a
recession, many drivers cannot afford the continued increases in gas prices.
Air pollution is another problem that’s getting worse in our surroundings. As
commuters, if we want to save money on gas and improve our air quality, the
Prius Plug-In will solve these two ongoing problem that’s affecting the
majority of the drivers in the U.S. The Prius Plug-In and Plug-In Advanced has
to be perceived as stylish, innovative, technologically advanced, smart, fun,
versatile and eco-friendly in the area of environmental sustainability.
13. Based upon where you position the hybrid car “industry”
on the Product Life Cycle, do you recommend that Toyota focus mostly on primary
or selective demand strategies for marketing their Prius line of hybrid cars in
2013?
Toyota needs to focus on primary demands. There are large
numbers of potential customers who do not own a hybrid vehicle. Marketing
strategies can be developed to attract these first time users. Brand awareness
can be implemented through advertising on TV, radio and via social media.
14. Using the Booz, Allen & Hamilton classification of
new product strategic alternatives, how would you classify Toyota’s very
original introduction of the Prius in 2000?
Under the Booz, Allen & Hamilton classification Toyota’s
introduction of its first hybrid vehicle, the Prius in 2000 is using the
new-to-the world product strategic alternative. Introducing the first
generation Prius back in 2000, Toyota utilized a “cross-parallel”
configuration for the angular Prius, permitting engine and batteries to provide
energy in tandem as needed or for the gasoline engine to generate electricity.
This concept offered every bit the range of a conventional auto, and it works
with the existing fuel station infrastructure. This paved the way to
sustainability in the environment. The technologically advanced hybrid vehicle
was a true innovation that was new to Toyota back in 2000.
15. When the Prius Plug In was introduced in November 2011
would that product launch be considered a new product category for Toyota or an
additional entry into an existing product category?
The Prius Plug-In would be considered as an additional entry
into an existing product category when it was introduced in November 2011. Both
Prius Plug-In and Plug-In Advanced are additional products into the Prius brand
of Toyota. The technologically revamped Prius Plug-In and Plug-In Advanced have
improved features that the previous Prius models do not include. The new
Plug-in Hybrid allows for a range of 15 miles of driving in electric-only mode,
before it operates like the standard Prius hybrid, which uses a combination of
electricity and gasoline to power the engine at all times, and recharges the
battery when the car is in motion This add to Toyota’s line of existing Prius
hybrid vehicles.
16. As a marketing expert, what recommendations would you
make to Toyota, if any, for product modifications or product line enhancements
to help Toyota be even more competitive in 2013 and to help them maintain their
top market share position?
PRODUCT MODIFICATION SUGGESTIONS:
1) Higher Gas Mileage comparable to the Chevy Volt of City
95/Hwy 93 or Nissan Leaf of City 106/Hwy 92. Toyota Plug-In currently has City
87/Hwy 49.
2) Change Body Style to Sedan instead of Hatchback. Some
people do not like the Hatchback style. They prefer the normal look of the
majority of the gasoline fueled vehicles on the road.
3) Work with the government to attain the same refund tax
credit of $7,500, the same as its competitors Nissan Leaf and Chevy Volt. Ask
EPA what changes they need to comply to the government standards of hybrid vehicles
and be able to offer the same tax refund to its customers
4) Increased driving miles in the electric mode.
By taking a survey through its websites, internet social
media, blogs, facebook & twitter, listen to what the customers or
non-customers have to say, whether they are positive or negative comments,
Toyota’s Management Team has to consider their suggestions with open minds.
17. When Toyota introduced the original Prius in 2000, which
of the two market entry strategies, pioneer or follower, was Toyota following?
I believe when Toyota introduced the original Prius in 2000,
it was a pioneer in the hybrid market. Even though Honda released the first
hybrid car, Insight, to hit the mass market in the United States back in 1999,
it was a two-door Sedan and with different features compared to the Toyota
Prius. Even though the Honda Insight won numerous awards and received EPA
mileage ratings of 61 mpg city and 70 mpg highway, it’s size and spartan
interior limited the car’s general appeal. Toyota released the Toyota Prius in
2000, the first hybrid four-door, 5-seat compact sedan available in the United
States.
The Prius is considered the first vehicle of its class to
provide not only the cutting-edge hybrid motor technology, but also the space
to make it a comfortable car for a family. The Prius prides itself on its
aerodynamic design as well as its fuel efficiency and enhanced storage and
cargo space, making it a multifunctional vehicle useful for anyone.
This four-door hybrid has become a hit with consumers
because of its stellar fuel economy, relatively uncompromised driving and
acceleration characteristics and reasonable price.
18. Based upon the brand names used by Toyota in the
marketplace for its current lines of vehicles, what type of “brand identity
strategy” is being followed?
Toyota used the Combination Strategy. It combined both
corporate name followed by the individual brand name, Toyota Prius, also known
as sub-branding. The company name, Toyota which is a well known vehicle company
combined with the individual name of the product, Prius Plug-In and Prius
Plug-In Advanced, when combined, promotes brand identity strategy. The company
name legitimizes, and the individual name individualizes, the new product.
19. When Toyota introduced their first Prius hybrid car in
2000, which type of “brand leveraging strategy” was Toyota following?
When Toyota introduced the first Prius hybrid car in 2000,
the type of “brand leveraging strategy” it was following was the Vertical Line
Extensions. The Prius brand is an additional product of Toyota. With the
advancement in technology and the continual increase of gas prices, Toyota once
again has capitalized in the introduction of the first hybrid vehicle back in
2000 just like when they first introduced their first compact car, Toyota
Corolla in the early 1980’s. The growing world population along with frequent
increases in oil prices and conflicts in the Middle East make this technology
efficient and desirable.
20. Recommend your proposed Value Chain Strategy by drawing
a channel map of your proposed sales and distribution channels that Toyota
should use for the Prius line of hybrid cars for 2013 in the United States?
(try to understand all of the different ways, if any, you have to purchase a
new Prius other than just an obvious one through a dealer)
Distribution of Prius Plug-In
Import Flow
The New Prius Plug-In will be directly imported from the
main manufacturing plant in Japan.
Distribution Channel
The new Prius line will be distributed to the Toyota
