Marketing Plan for Toyota Prius Essay

1. Executive SummaryToyota Motors is preparing to launch the new Toyota Prius crisscross. The Prius clear be victimisation the Hybrid Synergy Drive (HSD) with features combining exceedingly efficient petrol engine and an electric motor. The electric vehicle (EV) allows the Prius to unknot purely for low noise and zero enkindle consumption (Toyota Company, 2012). callable to the ever increasing presence of green revolution, Toyota Motors wants to manoeuvre advantage of the authorisation step-up in demand for hybrid vehicles (Boschert, 2007). Having been voted the Worlds No 1 Hybrid in 2010 (Toyota, 2013), Toyota Motors have made an executive decisiveness to continue producing the Prius, giving the world its first mass- hitd hybrid car. As a result, even before launching this new growth it is of the essence(predicate) for Toyota Motors to prep atomic number 18 strategic grocerying place so that the Toyota Prius can touch on the marketplace.2. Current foodstuffing Situa tion1. ProductLet us take a look at the Prius with respect to its exterior, interior, instruction execution, safety and wrong (Toyota Company, 2013). outdoor The Prius has a distinct design shaped by using a comprehensive approach to aerodynamic theory and executing, contributing to its powerful surgical operation and outstanding fuel efficiency.Interior The interior of the Prius expresses the spirit of innovation which is substantial and inviting. The Prius is fully equipped with soft lines which flow around the occupants as passengers and drivers besides relax comfortably.Performance The Prius is a combination of highly efficient engine with a fully equipped electric motor. The HSD depicts a smooth, responsive performance which includes low fuel consumption and low exhaust emission.Safety The Prius ensures calm of mind. This means that it is fully equipped with active and passive safety measures that commix the use of advanced technologies helping to ensure the highest le vel of safety.Price The Prius is pre displacely priced at RM 139,915 with indemnification for consumers in Peninsular Malaysia. As engineering science for the Prius increase, Toyota allow surely lower its market price so as to come it more(prenominal) affordable for consumers.2. Market data agree to a curriculum vitae through with(p) by J. D. Power published in 2012, al just about 23% of respondents have indicated that the neighboring car they would buy or lease would most likely be a hybrid car such as the Prius (Tuttle, 2013). Toyota being the top manufacturing hybrid car company has certainly managed to rouse beyond its original niche status and become a crush seller across the globe.3. CompetitionThe Prius continues to face intense competition from former(a) automakers. One of Toyotas main competitors is Ford. Ford has recently launched the C-Max. The C-Max has been impressive save higher gross revenue than the Prius V (Turtle, 2013). In January 2013, Bloomberg re ports that Ford hybrid gross revenue have increase five-fold. Ford has sold 6000 hybrids in January 2013 as comp atomic number 18d to sole(prenominal) 1200 in January 2012 (Trudell, 2013). Erich Merkle, Fords gross revenue analyst has even inform that we are looking toward 2013 as being a record sales year for our hybrid vehicles. Also, Fords market share has increased from 7% in 2012 to 16% in 2013.4. Macro-EnvironmentWe leave behinding be using the PESTLE analysis as a tool to clearly locate and analyze the key drivers of change in the business environment (Johnson, Scholes and Whittington, 2008. As stated by Orfano, this PESTLE tool allows the assessing of the current environment and strength changes (Orfano, 2011). We shall look at these 6 factors based on the research done by Sin and co (Sin, 2012).Political Factors The Prius has a positive policy-making impact because by manufacturing these hybrid cars, a country reduces the dependence on petrol. This is true for coun tries that do not produce oil.Economic Factors Consumers will come out to select the Prius because of the fuel savings all over time benefits. Also, the cost of insurance and road tax for the Prius is relatively lower that a normal gaseous state car.Social Factors Since change in the climate is a serious issue, Toyota should produce a vehicle which will not bring pollution to the environment. Although the Prius is importantly higher in value than conventional cars, with technology increasing in the near future it is very likely that the price of the Prius will compensate accordingly as the Prius technology become more familiar.Technological Factors Hachman suggests the technology used in Plug-In Hybrid Electric Vehicles is the idea of using the knock about powered car. The recharging time is one and a half hours for 240V AC or three hours for 120V AC. The plug-in will switch to hybrid mode, providing an estimated 49 miles per gallon (Hachman, 2011). In order to increase mileage , the Prius is built from a body of lightweight materials such as carbon fiber, aluminum, magnesium and titanium.Legal Factors According to the United States part of energy lead programs office (LPO), it encourages advance clean energy technologies. This is to sum up meaningfully to the objectives of including job creation, reducing dependency on foreign oil, better environmental legacy and enhancing American competitiveness in the global saving of the 21st century (U.S. Department of Energy, 2005).Environmental Factors The Prius unlike other cars does not produce gases such as carbon dioxide, carbon monoxide, sulphur oxides, oxides of nitrogen, hydrocarbon and lead which can cause many health problems. Not only does the Prius, provide a public benefit but at the same propagation it does not compromise on its safety, quality and functionality.3. SWOT AnalysisIt is importance to identify Toyotas organizational strengths and weakness together with its opportunities and threats. The ultimate finis is to identify Toyotas core competencies things that Toyota has or does relatively well as compared with competitors (Schermerhorn, 2011).Strengths Weaknesses Best fuel efficiency of any midsize car Fuel economy varies and optimization requires careful driving Spacious interior Premium price compared to similar non-hybrid cars Good performance compared to non-hybrid vehicles Other cars are available in the same price range with significantly Comfortable higher performance Quiet at all speeds Requires more energy to build than like non-hybrid cars Smoother transmission than most other cars Appeal of latest technology Minimal impact on environment Excellent scoring on crash test Opportunities Threats It is likely that petroleum will cost more in the future as suppliesHigh mileage clean diesel motor based cars are becoming more available and diminish which may increase demand will grab market share sentiency of environmental concerns is growing Other hybrids such as the Ford C-Max will soon enter the market Sales are likely to strand so forth out new markets in developing countries over Toyotas recent ostracize press and widespread recalls are likely to time scare whatever strength buyers. (Halbright, 2010)4. ObjectivesIncrease awareness of Toyota Prius by 50% in the next 3 years targeting new markets in developing countries.Increase native sales of Toyota Prius by 40% by the end of 2013 (Refer to cecal appendage tint 1)Invest substantially in positioning a distinctive Hybrid Synergy Drive (HSD) projecting low noise and zero fuel consumption.Start positioning Toyota Prius as an environmental friendly family car.5. Marketing systemCreative Strategy The Toyota Prius offers features that no other car offers. This in itself is its eccentric selling mention and should be emphasized in market promotions. As a start to achieve the increase in awareness, promotion should abbreviate on the education aspect.Communicatio n Mix As for communicating the Prius, ii factors should be considered a) the type of product (high involvement) and the stage in the product emotional state cycle (introduction). With regards to high involvement, personal selling is important because it provides more confidence of purchase. person-to-person selling will be carried out by the local car dealers who need to have sufficient knowledge on the Prius. Personal selling will besides include targeting corporate companies or hap buying segment. As for the stage in the product life cycle, sales promotion is most effective trigger for a purchase. Sales promotions are useful at the beginning of the product life cycle to increase acceptance or provoke a test drive.Media Strategy The network plays an important role. A direct mail will be sent to potential buyers and enable buyers to purchase the Prius online which would include a downloadable e-brochure. All advertisements will bear the Prius web address to make it easy for buyers to find it. withal that, print adverts will be placed in quality newspapers particularly those newspapers with weekend car editions such as The Star, New Straits Times, The lie etc. Also, since the television is a good medium to target a wider audience it should be a priority. The TV stations would include TV3, NTV7 etc. Not forgetting outdoor billboards positioned at specific junctions. This could be complemented with a TV and print advertising where it is visible for potential buyers to see.Pre-Launch This is crucial to get potential buyers excited about the new and upcoming Prius. Focusing on the pre-launch could potential determine how well the Prius sells. Consequently, an aura of excitement should be built from societal media, direct mail, advertising, television adverts etc. This would also create awareness for the product that has a long purchase cycle and a long purpose time.6. Action ProgramsSubsequently the deed program will be over a span of 3 years. So as t o align our action program with our objectives, our marketing strategies will directly plan to achieve the objectives in which we set out. (The breakdown of the action program is attached in the Appendix Note 2-4)7. Projected Profit and passing play masterysThe Projected Profit and Loss Statement would project a gross profit of RM 172,787.50. This comes from a intercommunicate unit sale of 2,500 units. (The breakdown of the Projected Profit and Loss Statement is attached in the Appendix Note 5)8. ControlsSo as to maximize the return on the marketing plan, there needs to be come acrosss in place to monitoring devices the plans progress (Anderson, 2013).Customer Feedback To monitor the marketing plan, Toyota needs to monitor customer feedback through polls and surveys. Toyota can reach our buyers indirectly through hosting online polls on the Internet. Consequently, surveys can be done with marketing groups or via individual interviews by phone or in person.Target Market Sales Th e Toyota Prius sales can be measured by the units sold. This is also done through market survey or at the point of sale. For example, if the target market is male ages 40 to 50, then market sales reports would monitor sales made to that group. On the other hand, if sales are down, then further market research would need to identify sales made to that group.Budgeting This would include printing expense, travel expenses for trade shows, cost of market research studies and internal personnel costs. These costs would need to be close monitored to minimize spending and maximize profitability.Market Share Toyota would need to control market share which is the percentage of consumer sales dominated by the Prius. According to Turtle, the Toyota Prius market share decrease from 68% in 2012 to 60% in 2013 (Turtle, 2013). Subsequently, Toyota would need to increase market share and continue to place the Prius effect in the marketplace.