Table of Contents

1.0
Introduction
..2
2.0 Toyota Motors Corp.
Concepts...2
2.1
Segmentation.................2
2.2
Targeting..3
2.3
Positioning
3
3.0 Toyota Prius
4
3.1 The Market of Toyota
Prius4
3.2 Priuss Target
Market5
3.2.1
Demographic....5
3.2.2
Geographic.5
3.2.3
Psychographic..5
3.2.4
Behavioural...5
3.3 Toyotas Prius
Positioning..6

4.0 Marketing Strategies of Toyota Prius ( 4Ps)

.7
4.1
Price.7
4.2
Product..7
4.3
Promotion.8
4.4
Place9
5.0
Conclusion..1
0
6.0
References..1
1
7.0
Appendices....1
4

1.0 Introduction

According to the company of Toyota began in the 1957 when it first came
to the America. In the beginning, Toyota was poorly start a car called the
Toyopet, but they made their comeback after 8 years which is in the
1965 strongly (Toyota.com, 1957). After the poor days, the Corolla, Camry
and the Toyota trucks came out. Then the luxury brand which is Lexus and
Scion also became a part of the Toyota company brand. Recently, Toyota
also built the worlds first hybrid car as we know today, Prius. It became

the leads in the automobile industry in the environmental technologies

with the success of the hybrid technology in the Prius and also the Hybrid
Camry. As Toyota Company still progressing every day after the past 50
years, they became one of the top car companies in the America. The
Toyota Company offering various types of products such as Prius, Camry,
Corolla Altis, Innova and more. They provide different kind of design,
concepts of car, engines, glossary and also safety. The vision of the Toyota
Company was to the most respected and admired company while their
mission is to deliver the outstanding automotive products and services to
their customers, and enrich their community, partners and environment
(Toyota Australia, 2012).

2.0 Toyotas Motors Corp. Concepts

2.1 Segmentation
Different

segment

like

age,

gender,

income

and

not

least,

the

geographical segmentation and behavioural segmentation was the

segment that the Toyotas Company target for. For example, income is the
most common basis for segmentation. Toyota Lexus is for the high end,
while Camry is for the middle of the roaders. Other than that, for
geographic segmentation was different countries have different weather
such as snow, so that the country should target on special tires to prevent
incidents happen. In addition, for the behavioural segmentation, is on the
basis of the occasions, product usage, benefits from a company to their
customers, and also the loyalty status of the customers. Toyota
Companys target segmentation is to gathered the ideas from their
customers and improve the quality in many parts. Toyota does what their
customers market have a similar needs, characteristics, or even
behaviours and group up the market. According to them, they did improve
some of the ideas from the customer feedback such as a system that can

be switched the colour of the graduations on the meter to suit the

customer preference (Toyota.co.jp, 1935).

2.2 Targeting
Toyota is the actual selection of the segment that they want to serve the
target market of people or an organization that needs a product that
specifically designed to satisfy their demands and needs. Toyota's target
market is the entire world of people, from the age of groups from 16-80
and above. They created the Solara to put some sportiness design into the
Camry. Other than that, Toyota also makes trucks to be able to cruise off
road, with also the FJ Cruiser, 4Runner, and also Land Cruiser. They make
cars designed to improve gas mileage and be better for the environment
with the Prius. Toyota Company makes dependable, long lasting, while
they were economical sedans that are affordable, such as the Camry and
Corolla. They make hard working pickups with the praised Tundra and the
smaller Tacoma. They create family friendly cars that carry a lot while still
being economical with the Sienna and Highlander. Toyota also creates
small cars that can be used for small trips like Matrix. Moreover, the
Toyota Company are marketed to so many people, and they are so well
known that their cars can be used around the spectrum. They actually
make a car for almost anyone. If include their Lexus line, they also make
great luxury cars.

2.3 Positioning
Positioning is the use of the marketing to enable customers to form a
better mental image on Toyotas product in their minds. According to
Friesner, Toyota strong industry positioning is based on the number of
factors that included the diversified product range. While they highly
targeted marketing and also make a large range of vehicles for both
privates and commercialize customers (Friesner, 2005). For the Toyota
Company,

Lexus

and

Toyota

are

now

having

the

reputation

for

environmentally friendly vehicle. For example, Lexus own a RX 400h

hybrid while Toyota has Prius. In addition, according to Thepensters.com,

Toyota targeted the urban youth market now, so, they launched the new
Aygo which is target on the streetwise youth market and attempts to the
nature dance and DJ culture in a certain segment (Thepensters.com, n.d.).

3.0 Toyota Prius

The Toyota Motors Corporation manufactures cars ranging from economy minivans
to luxury cars and SUV. Toyota Prius is the car which had considerable success in
the U.S. market. Initially this was due to the fact that America had had gasoline crisis
and the Americans needed in oil saving cars. While American cars manufacturers
are producing not enough cars, Toyota took advantage of the opportunity and took its
place in the market. Toyota is a great example of energy efficiency as it provides
environmentally cleaner emissions and ever-saving dollar that it saves. The
uniqueness of this machine is that it has a hybrid system, which allows using two
types of power sources such as combination of a petrol engine and an electric motor,
thereby allowing choosing power sources according to driving condition. Due to the
fact that Prius is the first hybrid of mass production, so competition among such cars
is not high (Appendix 1). Although the Honda Insight is a hybrid too, but compared to
the Prius cannot offer the same conveniences.

3.1 The Market of Toyota Prius

In view of the rapidly changing tastes of buyers, the market of Toyota has become
more differentiated. Certainly the differentiated market is more expensive and is
focused on a narrower range of consumers. However, differentiation helps to achieve
high sales and take a strong position in the market. Toyota Motors Corp is mainly
targeted at buyers of upper-class. These buyers belong to generation X. However,
the demand among buyers of Generation Y increases. Thus, Toyota can meet the
needs of customers both generations. Where technical features of car are more
paramount, as for others design of car. Toyota is more focuses on buyers Generation
X.

3.2 Priuss Target Market

Basic target market of Prius can be determined from basic demographic, geographic,
psychographic, behavioral segmentation variables.

3.2.1 Demographic
The demographics of people who are able to buy a Prius are women and men
between 30 and 50. This type of customers is the generation X, those who was born
in 1961-1981. This age population problem-solvers, family-centric, technology
competent, politically conservative. They have goal-oriented lifestyles, holds a high
status in society, well educated. The social status is primarily managers and
entrepreneur with high levels of income. Most of them are deep commitment to
family and career. Due to the high income, they are not only willing to buy ecofriendly car, but also be able to pay for it a higher price.

3.2.2 Geographic
Geographically the main markets of Prius are Europe and Western America, since
these areas are industrial centers. Consequently the target buyers of Prius are urban
populace.

3.2.3 Psychographic
These people can be divided into two groups, early adopters and thinkers. Early
adopters those who are use a new technologies or products before others. They are
interested in the last technologies, also they are called trendsetters. Thinkers, they
are conservative, mature, and responsible and appreciate the functionality and value
in the products they buy. Thinkers are aware the impact of motoring on the
environment and want to minimize the use of substances harmful to the
environment. Also for them is a priority fuel economy and low operating costs of car.

3.2.4 Behavioral
These people have an economic image about car before they buy the car. In other
words when they buying hybrid cars, they expect that as rising fuel prices will pay off
their costs. Also buyers of hybrids keep their cars much longer than the average
person.

3.3 Positioning

Positioning is one of the important steps in the development of the product. In the
face of fierce competition in the market survive those businesses that correctly
assessed their possibilities in positioning of goods. In other words right positioning
strategy is not only design the product image to customers, but also to compete with
other brands. A good example of a winning position is the Toyota Prius. Toyota is a
global leader in hybrid technology, sales of Prius significantly higher than any other
hybrid models. For many years the Prius is associated in the minds of consumers as
eco-friendly car. In its attempt to capture market share Prius originally positioned
itself as the first car with a hybrid engine of mass production. At that time, one of the
main tasks facing the Toyota is informing potential customers about the product.
Since the hybrid vehicle at that time was a new product, in this connection, most
people had no idea about hybrids. However, they were well aware of the danger of
Co2 and its negative impact on the environment; it was actually a great opportunity
for Toyota. Thus, the Prius founded its strategy of positioning on two priorities, such
as performance and eco-friendly. While in most people's minds exists the impression
that hybrid cars have quite low performance, so the Prius did not focus only on its
ecology. The main advantage of hybrid cars is their consuming economy.
(Appendices 2) The most famous and competitive hybrids are the Toyota Prius and
Honda Insight. Despite the fact that the Prius and Insight are both hybrids, they offer
different conveniences. First difference in driving style, since the Prius and Insight
are aimed at a comfortable ride, which would like most buyers, though they do it in
different ways. Toyota Prius offers a soft, quiet ride which is impressively luxurious,
but it is far from the sporty. On the other hand Honda with a better body control, but
Insight more sporty than the Prius. Next Prius differentiating factor from other
competing brands is its capacity. The interior and baggage compartment are much
spacious, than in Insight and Lexus CT200H, which is also a hybrid car. Another
advantage of Prius is fuel-economy, which, due to Toyota's advanced technology
provides significantly more horsepower than the Insight. Another and most important
difference among Prius's competitors is exclusive Hybrid Synergy drive System. This
system allows reducing carbon emissions and fuel use. In most of its campaigns
Toyota Prius is positioning by the fact that by decreasing the extra power, space, and
advanced technology can be satisfied the needs of consumers, at the same time
taking care about what needs nature: less carbon emission.

4.0 Marketing Strategies of Toyota Prius ( 4Ps)

4.1 Price
Toyota

Company

is

one

of

the

largest

and

famous

automotive

manufacturers in the world. Toyota is well-known in building cars in

different way to fulfill their consumers satisfaction beside than building a
powerful engine. The newest investment of Toyota is hybrid car which
named as Toyota Prius which can satisfy all their consumers need. In 21th
century, there are over 50 hybrids currently on the market. Time passed
by, the Toyota Prius has become the best-selling hybrid on the market.
Toyota Prius has stellar fuel economy, reasonable price, acceleration
characteristic and comfort ride. Thus, these are likely to attract the
consumer to buy it. As the price had to offer, the packages given by for
example insurance, low instalment from the price of RM1298 to RM1350
per month, 5 years warranty for 60000 miles and full accessories include
rims, body kits and high performance engine. The sound system including
USB, Bluetooth and excellence bass system. And the safety of the car is
also good as the airbag system is also available and this had made this
car reasonable to purchase with it price. Annual sales of Toyota Prius are
based on diagram 1 whereas the price-list of Toyota Prius is based on
diagram 2. (Appendix 3)

4.2 Product
Toyota Prius is come out with the idea of reducing the fuel cost by using
the electronic system combined with petrol to run the engine. In 2013,
Toyota Prius has become the best hatchback car for family because it has
the best combination of quality, size of the car and features for the family.
There have a lot of passengers seats of Toyota Prius and the backseat
slides have more space for legroom and cargo space by pushing it up. The
standard features of Prius include Bluetooth, an IPod interface and keyless
start whereas the optional features include voice activated navigation

system and heated seats. There have 8 different of colours, such as

glacier white, crystal pearl, silver pearl, wildfire, stealth, scarlet, dynamic
blue and ebony. Design of the Toyota Prius still remains the same because
it had become relatively recognizable to their consumer. However, the
design of latest generation of Toyota Prius still has slightly differences
than before. The new Prius look more modern by including shaper corner
and lines designation for improve lines design for better air release. Target
market of Prius have divided into 3 categories, there are demographic,
psychographic and geographic. In demographic, the private is the most
important market. The consumer can be male and female who are usually
married and between the ages of 30-50 years old. Toyota Prius will also
attract the people who like the latest technology and also the media
usage. Meanwhile, people who care about environment will be attracted
by Prius because Prius can reduce the population by using electronic
motor. Prius has to face a lot of competition with other roll out new and
improved hybrid. For example, Ford was unleashed the C-Max, which has
been known as Prius fighter. Otherwise, Prius V has been promoted to
the market by Toyota in the first full months of C-Max sales. Prius has
competes with the C-Max most directly. Test drive will be promoted by
Toyota Company to their consumer. Consumer will often attracted and buy
the car after they get experience of it. Moreover, Toyota Prius can attract
their consumer come to experience their product, Toyota Prius by creating
an

advertisement

and

promotion.

4.3 Promotion
In modern life the promotion of such products as cars on the market that
has a lot of similar goods domestic competitors, as well as import
competitors, for many companies is expensive, time-consuming and
complicated. The Promotion of the Toyota Prius can be divided into
Toyotas two main marketing campaigns for the 2000 worldwide launch
and 2004 launch of all new Toyota Prius. To attract more attention for sales
of the Toyota Prius, Toyota Prius advertising department in conjunction

with outside advertising agencies such as Saatchi & Saatchi and Oasis
Advertising of New York, creates an integrated media plan. This media
plan includes using printing advertising, broadcast and exhibitions to
introduce whole world with new hybrid Toyota Prius. The campaigns goals
are to inform interest and persuade consumers about Toyota Prius. The
main characteristics, which campaign uses to describe and emphasis
attention of the public are: comfort, convenience and great performance
of Prius. One of the important factors is concept of environmentally
friendly car, which helps to campaign promote Prius among consumers,
who concern about ecological condition.

Also advertising campaign

implements direct marketing, where the main goal is to let consumers try
product in real by offering test-driving. Next feature is a purchasing
website, launched by Toyota Company, where consumers can learn about
all new development, promotion and also online ordering. Toyota Prius
advertising department builds good relationships with consumers by
offering great opportunities for those who first submit online purchase
requests.

Another Toyotas integrated promotion campaign focuses on

persuading and reminding and name is The Power to Move Forward. This
strategy focuses on maximally satisfy customers needs and notify them
about of the innovation in Prius development. Strategy includes using TV
commercials, in which Toyotas advertising campaign brings an idea for
customers: why they should purchase Toyota Prius, why it is a right
choice? This helps to customers figure out with their needs and make a
right decision. Using Public Relations helps to advertising campaign
spread their message to the press relations and public affairs and attracts
more consumers. Also Toyota works on personal selling and supports
dealers to promote Prius. These strategies bring Toyota Prius on the top of
selling and make this car popular from day to day.

4.4 Place
Important factor is the distribution channel, as most of its production,
Toyota offers through intermediaries. On this basis, the company created
its own distribution channel. On the "Toyota" they are implemented

10

through five of their own distribution channels - "Toyota", "Toypet",

"uto", "Vista" and "Crown", ech of which srves a specific consumer
segment and offer the consumer clearly assigned to his model cars. Prius
as environmentally friendly car falls into gasoline free category. Toyota
implements new technology of using hydrogen fuel cells. This technology
means complete independence from

gasoline. But this technology is

immature and requires new distribution channel for hydrogen fuel. Next
step of Toyotas company using but with higher efficiency by coupling to
an electric motor, which is more economic and helps to company fast
intrude to the target market.

At this time Toyota has 16% of the

worldwide market and Prius controls 75% of the market in such developed
countries as USA, Japan and Germany. This shows important of Prius on
the world trade market and distribution channels.

5.0. Conclusion
Nowadays, Toyota considered as worlds most successful car corporation
and its excellent marketing strategies provide interest among customers
every

day.

Toyota

corporation

based

on

its

concepts

such

as:

segmentation, where include different segments like age, gender, income

and

not

least,

the

geographical

segmentation

and

behavioural

segmentation; targeting, which specialize on almost entire population of

the world from the age 16 80 and above; positioning is the use of the
marketing to enable customers to form a better mental image on Toyotas
product in their minds.

Toyota Prius is the car which had unbelievable

success in the U.S market, because of its conventional use and

environmentally friendly concept. Target market of Prius can be divides on
basic demographic, geographic, psychographic, behavioral segmentation variables.
Also Prius develops marketing 4ps strategies, which help to attract customers and
expand sales of car. All this well-organized and successful marketing plans brought
Toyota Prius on the top of world most buyable car.

11

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14

Appendices
1.

Top selling Hybrid -Electric Vechicles (U.S.) 2012

1200000
1000000
800000
600000
400000
200000
0
Toyota Prius

Honda Insight

Lexus CTH200

Figure 1 Top selling Hybrid Electric Vehicles 2012

15

Hyundai Sonata

2.

3.
Annual sales of other Prius family vehicles in the four top selling markets
between 2011 and 2013 CYTD
Country

Year

Toyota
Prius v//+

Toyota
Aqua/Prius c

215,500

266,567

Toyota
Prius PHV

2011
Japan

2012

12,600
2013

USA

Europe

80,665

2011

8,399

2012

40,669

35,733

12,750

2013

8,525

9,865

2,353

10,988

NA

3,496

2011
2012

16

Canada

Cumulative
sales
through
March 2013

2013

3,715

1,412

2011

553

2012

4,077

2,530

63

2013

562

477

86

Top
markets

292,988

395,837

32,760

Worldwid
294,900
e

409,500

32,760

Notes: (1) CYTD: Calendar year to date sales, as of March 31, 2013.
(2) No total by year is available for Prius because Toyota is reporting sales of
regular
Prius
and
Prius

together.
(3) Not be available in Europe, instead, Toyota is selling the Toyota Yaris Hybrid, which
shares
the
same
powertrain as the Prius c. 36,600 Yaris Hybrids have been sold through March 2013.
Figure 3: Annual sales of Toyota Prius between 2011-2013

Figure 4: The Price-list of Toyota Prius between 2004-2011

17

Price by Model Year Chart

The average price of a 2004 Toyota Prius is $13,244.00

The average price of a 2005 Toyota Prius is $13,435.00

The average price of a 2006 Toyota Prius is $13,491.00

The average price of a 2007 Toyota Prius is $16,491.00

The average price of a 2008 Toyota Prius is $19,301.00

The average price of a 2009 Toyota Prius is $22,399.00

The average price of a 2010 Toyota Prius is $25,013.00

The average price of a 2011 Toyota Prius is $30,200.00

18

19