This is our group presentation about Toyota Prius in Consumer Behavior class

1. Angga Satria 29109370 Azniar Nurina 29109361 Muhammad Fajar
29109359 Rully Setiawan 29109333 Surya Agung W H 29109355
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2. Toyota as a leader in automotive industry has launched new concept of
transportation mode.
The hybrid concept is mend to create new vehicle that more eco-friendly and
highly efficient in fuel consumption.
Toyota plan that at 2012, all vehicles that produced in U.S would have hybrid
electric engine available.
To reach this, Toyota focus on evolving full line of the vehicle into hybrid. The
challenge is, how the company would drive the wide range of consumer attitude
and purchase intent to buy hybrid vehicle
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3. Cars provide many benefits to drivers: Image, transportation, mobility and
convenience.
Each manufacturer competed by trying to meet the needs of its current
customers, while preparing for the for the future of the industry.
Strong environmental legislation and the societal perception of environmental
demands were accelerating manufacturers effort to make their products
environmentally cleaner and more fuel efficient.
Leading companies would provide consumers with vehicles that bridged the
gap to the future by combining qualities of today’s cars with the technology of
alternative fuels
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4. The Toyota Motor Company was first established as a spin off from Toyoda
Automatic Loom Works, a leading manufacturer of loom machinery.
In 2003, Toyota was the world’s third largest manufacturer of automobiles in both
unit and net sales.
It was the largest Japanese automotive manufacturer, producing more than 5.5
million vehicles per year, about one vehicle every six seconds.
In 1957, Toyoda made the first move into the American market, with the
introduction of the Toyopet Crown.
Toyota as the only auto manufacturer with product that could meet the
consumers expectations of quality, safety and performance while providing the
promise of a cleaner environment.
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5.  California has always been an initiator in establishing environmental
program and committing to reduce environmental risk posed by pollution.
 California Air Resources Board (CARB) adopted a Zero Emission Vehicle
(ZEV) Program.
 Federal regulators voted to force automakers to make the largest fuel-
economy increase to sport utility vehicles, pickup trucks and minivan in 20
years.
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6.  Fuel Cell Technology
The obstacles for fuel cell technologies were with reliability and durability, power
output, cost-efficiency and the ability for manufacturers to mass-produce the
vehicles.
Pure Electric Vehicles
Limitation of Evs: lack of power, long charge times, cold weather issues and
challenges wit the existing infrastructure.
Hybrid Electric Vehicles
HEVs allowed for consumers to have the benefits of an environmentally friendly
vehicle, along with the comfort, performance and convenience of their current
automobile.
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7.  Toyota used an effective product development process that was able to
reduce the cycle time for developing new models
 Bringing new products to market almost 30 per cent faster than its competitors
 Toyota’s edge on new technology and the environment stemmed from Toyota
Production System (TPS)
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8. Utilized a just-in-time production system that was designed as a “pull system,
that giving several impact such as :
 Reduction in inventory and operating costs
 Flexible and fast in making changes to the production system and vehicles.
 Employee could determine quality assurance by stopping production as
necessary to eliminate defects.
 Revolutionized the quality and productivity
 Helped to create Toyota to focused on customers future needs rather than
responding to current desires.
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9.  Did not require any infrastructure changes.
 HEV had more advantages on fuel efficiency and less emission vehicles.
 It combines electric motor with gas or diesel power engine with Better gas
mileage, lower emissions.
 Hybrid technology is better for the environment.
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10. Introducing the How to develop
hybrid engine the consumer
technology into attitude and
the full line of purchase
vehicle intent?
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11. Toyota Honda General Motors Ford
Focused on R&D and Had ability to adopt Focused on Merger Focused on Merger
Innovation technology and Acquisition and Acquisition
Toyota Prius Had two HEV Saturn SUV, First SUV HEV
Chevrolet pick up
truck
Focused on selling
more fuel efficient
pickup
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12.  Toyota was preparing and training its service technicians at all dealerships to
fill the demand for hybrid-electric service needs.
 Toyota promised that every their car, truck and SUV was covered by limited
warranty coverage to increase customer confidence
 Toyota had focused its business strategy on technological innovation,
research and new product development
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13. Early Adopter (niche market)  Has willingness to try new innovations and most are
Opinion Leaders
Time and the Adopter Categories
Innovators
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Adopter Categories Based on Innovativeness

14.  Toyota should develop strategy to turn HEV tech. from niche market into
mainstream acceptance
 Toyota challenge to increase awareness HEV product and build strategic
advantage over traditional cars and trucks
 Non traditional tactics to garner awareness and increase perceptions
 Toyota need to understand consumers demographic and psychographics to
determine their advertising and marketing strategies.
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15.  Attitudes HEV consumers: well informed about HEV, willing to pay / buy for
their current vehicles.
 Average Hybrid buyer characteristic: fairly well-off, educated, baby boomer.
 Average Prius driver: female, age 51, unmarried, household income
$74,700, hobby (home computers, health foods, science fiction).
 Prius sold best in Portland, Oregon, San Francisco, and California.
 Prius sold worst in Memphis, Tennessee, and Little Rock
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16.  Familiarity with the habits and preferences of the US consumer.
 The promotional tactics chosen to launch.
 The company’s strategy for product development.
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17.  Traditional Marketing
 Fully integrated marketing plan with an emphasis on Internet and web advertising.
 Toyota placed 15-second video ads on usatoday.com and excite@home.
 Toyota also using non-traditional marketing tactics to garner awareness and
increase perceptions, by offer ceremony celebrities a Prius to drive to “Oscar”-related
events.
 Non – Traditional Marketing
 Toyota also used traditional media, including broadcast and print advertising to
communicate the campaign theme and the launch.
 Toyota selected advertising agency Saatchi to design and build the HEV
campaign.
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18.  Turn the hybrid technology from a niche market product and evolve it into
mainstream acceptance
 Creating awareness about the product
 Building a strategic advantage over traditional cars and trucks
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19. Create the advertising like video or test drive review that compare Prius
performance with traditional cars.
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20.  Strategy marketing which targetting Early Adopters consumers
 “Buzz” Marketing : Early dialogue with interested consumers
 Web-based communication to gain potential buyer.
 Media advertising, like broadcast and print to communicate the campaign
theme and the launch.
 HEV Campaign to maintain the image of an environmental vehicle
 Ceremony celebrities like Oscar related event.
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21. Toyota need to understand consumers demographic and psychographics to
determine their advertising and marketing strategies.
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22. Most Americans perceived that mandating more fuel-efficient vehicles was both
acceptable and favorable. Customers willing to purchase that were more fuel
efficients. Marketing and advertising efforts must inform the consumer very well
about Hybrid SUV Lexus RX.
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23. From consumer buying research, Toyota should focus on to expand the target
market to fairly well-off, educated and baby boomer.
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24. Toyota can work together with the government to create “green” campaign
about zero emission vehicle and involve in environmental reservation program
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25. Toyota should well communicate with the consumer with fully integrated
marketing plant with an emphasis on Internet and Web advertising, Toyota
should also using non-traditional marketing tactics to garner awareness and
increase perception.
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26.  They have to survive in the HEV industry that will be a potential market for
the auto industry.
 Prius have to strengthen its positioning as the innovators and fast mover
auto company in HEV market.
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