Marketing Environment Handout. Internet-Exercise: Toyota Group 3

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1 Marketing Environment Handout Internet-Exercise: Toyota Group 3 Presentation: March, 13rd 2007 Bernd Maurer Ralf Maurer Robert Rychlewski Table of content: Introduction Historical overview 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 Aug Nov Sales of the original Prius started in Japan Sales of the Generation II Prius started in Asia, America, Europe and Australia 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 units units of Prius were sold Toyota achieved 10th consecutive record year of sales in Europe

2 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 protocol - EU emission standard (reaches Euro-level 4 of exhaust emission standard) - Greenhouse effect - Smog - Particulate matter Fuel efficiency - Alternative propulsion Recycling - Waste reduction : minus 65 percent - Water usage : minus 25 percent - Energy usage : minus 35 percent

3 Country benefits for Prius consumers Launching program of Prius in Europe

4 PEST-analysis Political factors Monopolies legislation, Environmental protection laws, Taxation policy, Employment, laws, Government policy, Legislation Economic factors Inflation, Employment, Disposable income, Business cycles, Energy availability and cost Sociocultural factors Demographics, Distribution of income, Social mobility, Lifestyle changes, consumerism, Levels of education Technological factors 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 position 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 boost Due to the precursor position Toyota is the leader in the segment. not dependent on the oil quote Threats other technologies e.g. hydrogen engine high costs for new technology passing fad It is possible that the new hybrid trend is just a temporary fashion experimental technologies every kilometres servicing intervals only two hybrid cars reached the kilometres limit in test stage Infrastructural problems

5 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

6 Sources INTERNET: (data recall: march 7th, 2007) (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

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