Case Toyota Prius Essay
Case Toyota Prius
2. Outline the major macroenvironmental factors – demographic, economic, natural, technological, political, and cultural – that have affected the introduction and sales of the Toyota Prius. How has Toyota dealt with each of these factors ? Demographic: The Toyota Prius can buy these consumers who can afford to buy expensive but save, comfortable and „green” car. Economic: The business has economic relation with the government, capital market, household sector and global sector. These sectors together influence the trends and structure of the economy. The price of the car is higher than Toyota Echo about 4000 euros.
However, getting twice as many kilos per litre of petrol will help to reduce the price differential. It means that petrol is economic and owner of Prius will save on fuel. Natural: The growing desire to protect the environment is having an impact on many industries, in our case, the transportation industry. The Toyota company made right step to produce their first hybrid car. People are focused on environmental problems. Technological: Hoping that people are concerned about the environment, and trying to grab a technological advantage over the car manufacturers, the company decided in 2000 to introduce Toyota Prius, their first hybrid car.
The company expected that the first buyers of hybrid car like to buy and test something new and they were right. Many Toyota Prius owners are fascinated by the technology, they flood internet with discussion of the car. Political: In order to attract more customers, car manufacturers have asked government for tax incentives to stimulate purchase of clean-fuel and high-mileage cars. Several governments, like US or UK, offered some solutions. 4. In your opinion, what are the advantages of Toyota’s early entry into the hybrid market? What are the disadvantages?
Have Toyota jumped to early into an expensive technology that has had its day? The manufacturers of Toyota Prius risked by producing the hybrid car. However they hadn’t competitors in this market at the beginning, as it was quite new phenomenon in the world. Another advantage was clever marketing, which increased sales of Toyota Prius. The company used the internet source to distribute information and educate consumers about the Toyota Prius. Also sent e-brochures to 40,000 buyers before the introduction. I think, Toyota jumped on time into an expensive technology that has had its day.
Nowadays, economic crisis maybe influence on the sales of Toyota Prius. However, in 2000, when company introduced the car, it was right step to do it. 1. What microenvironment factors affect the introduction and sales of the Toyota Prius? How well has Toyota dealt with these factors? Customers: The customers want to save money on their cost of cars, so the cost of gas is the main problem. Toyota captures this situation and promote Prius to the market. This kind of car can save consumption of gas. It can suit for customer’s need. Publics: The government wants to advocate the concept of environmental protection.
So government regulations is the part of problem to influence Toyota company’s mind. And Toyota use this advantage to promote their hybrid car, the environmental protection is their main selling mind. Competitors: In hybrids car area, the Honda company is the mental competitor for Toyota. They invest a lot of money to promote the Prius via any kinds of media method. Following this, they also focus on reduce the cost of raw material. 3. Evaluate Toyota’s marketing strategy so far. What has Toyota done well? How might it improve its strategy? First of all, the Toyota focus on the change of customers and according to direction of government..
For their customers, they provide comprehensive services for them, for instant, they put some technology and digital equipment in the car, and according to customers need, they also provide internet service. Customers can following their want to pick a colour and decide whether they want a CD player etc. On the other hand, they always concentrate the promotion, for example, they spent 15million Europe dollars on promoting the Prius, and through different kinds of method to promote. At last, Toyota keep their awareness of selling concept to attract more customers, and these awareness very adapt to customers thinking.
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 15 February 2017
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