Presentation: March, 13rd 2007
Bernd Maurer
Ralf Maurer
Robert Rychlewski
Table of content:
• Introduction
• Historical
1. Target market for the Prius
2. Environmental factors influencing the target market
3. Major forces launching the Prius in Europe/PEST-analysis
4. Marketing opportunities and threats posed by the
environmentally conscious consumer
5. Marketing opportunities available in society
• Sources
Historical overview
1918 Sakichi Toyoda established Toyota Spinning & Weaving Co. Ltd.
Dec. 1997 Sales of the „original“ Prius started in Japan
Aug. 2000 Sales of the „Generation II“ Prius started in Asia, America, Europe and
Australia
Nov. 2002 Profit making from sales of each Prius starts the success of hybrids had now become apparent
2003 Engine Award for Yaris and Prius
2004 Prius Hybrid System wins International Engine of the Year Award
Toyota Prius is No. 1 in Swiss Environmental Index
2005 Second generation Prius wins Car of the Year Award
Toyota World Hybrid sales top 500.000 units
2007 654.572 units of Prius were sold
Toyota achieved 10th consecutive record year of sales in Europe

Target market definition:
[…target market is a segment that has been selected as a focus for the company`s offering or communications.]
Source: David Jobber, 4th edition
Prius target market:
lower/medium passenger car segment (C)
“first mass produced hybrid”
Nearly no competition (only Honda Insight)
Target market segmentation for Prius
Demographic
Male/female
Mid-life
Upper-middle-class
Psychographic
Early Adopters/ Technology pioneers
Environmentally Friendly
Value Conscious
Geographic
60% in North America
Increasing drift in Europe
Environmental factors and influencers of target market
Major forces are:
Global warming
Kyoto
EU emission standard
(reaches Euro-level 4 of exhaust emission standard)
Greenhouse
Smog
Particulate
Fuel efficiency
Alternative
Recycling
Waste
2001-2004: minus 65 percent
Water
2001-2004: minus 25 percent
Energy
2001-2004: minus 35 percent

Country benefits for Prius consumers
Launching program of Prius in Europe

PEST-analysis
• Political
Monopolies legislation, Environmental protection laws, Taxation policy, Employment, laws, Government policy, Legislation
• Economic
Inflation, Employment, Disposable income, Business cycles, Energy availability and cost
• Sociocultural
Demographics, Distribution of income, Social mobility, Lifestyle changes, consumerism, Levels of education
• Technological
New discoveries an innovations, Speed of technology transfer, Rates of obsolescence, Internet, Information technology
Marketing opportunities and threats
(as part of SWOT-Analysis)
Opportunities
• large growing market segment
More and more consumers enter this new segment due to the emissions concepts which are decided in Brussels and published on the 77th Genevean Carsalon
• precursor
In Europe Toyota is the one and only manufacturer selling hybrid vehicles
In the USA there is one competitor namely Honda, but far behind Toyota.
• image
Due to the precursor position Toyota is the leader in the segment.
• not dependent on the oil quote
Threats
• other e.g. hydrogen engine
• high costs for new technology
• passing
It is possible that the new hybrid trend is just a temporary fashion
• experimental every 15.000 kilometres servicing intervals only two hybrid cars reached the 100.000 kilometres limit in test stage
• Infrastructural

Other marketing opportunities
• Usage of environmentally friendly ingredients
(e.g. biodegradable)
• Usage of less energy or greener technology
• Ethcial issues concerning companies
(e.g. Bodyshop)
• Organic growth / non genetic engineering
• Certified products (e.g. AMA – seal of approval)
• Recycling

Sources
INTERNET:
• www.toyota.com
• www.toyota.com/prius/index.html?s_van=GM_TN_HYBRID_PRIUS
• www.toyota-media.com (data recall: march 7th, 2007)
• www.toyota-media.de (data recall: march 7th, 2007)
• Mission statement Toyota International and Europe
• Environmental Report Toyota (2005)
LITERATURE:
• David Jobber (2007): Principles and Practice of Marketing,
5th edition, McGraw-Hill Publishing Company
• Toyota Frey Pragerstraße, Vienna
GRAPHES AND LOGOS
• Graph: David Jobber (2007) p. 78ff
• Graph: Environmental Brochure Toyota 2006 – Aim: zero emissions, zero waste
• Company Logos: Toyota Media