Toyota Prius - Case Study

Toyota Prius: green or geek

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A CASE STUDY OF TOTOTA’S HYBRID CAR - PRIUS IN CONTEXT WITH MARKETING ENVIRONMENT AND STRATEGIES

BY: ZIYAD SHAHROUR

This case study will look in depth the introduction of hybrid car Prius by Totota. Toyota launched its first hybrid car Prius (meaning “to go before” in latin) in 1997 with technology that uses both gas and electricity to run, making it cleaner and more efficient. Toyota hoped to capitalise on growing concerns for rising fuel prices and environment safety and launched Prius early in the market, much ahead of other automakers.

Toyota Prius, world's first standard-production hybrid-electric vehicle combines a 1.5 litre four-cylinder petrol engine and a 33 kilowatt electric motor. It starts with the electronic motor and uses a nickel metal hybrid battery which recharges by regenerative braking. It’s in

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teriors provide comfortable seating for five persons (if they are not too large in size) and a 0.34 m3 luggage space. Prius switches between electronic motor and internal combustion system depending on the speed of driving which results in delivering higher fuel economy and lower emissions compared to regular cars.

With a limited life expensive nickel battery, high cost of service, spare parts and the fact that it’s not a power car, it’s fuel efficient feature may not attract consumers. Hoping to reduce these cost issues, which may take years, Toyota strategically approached Government Agencies for tax incentives on grounds of its clean fuel and high mileage. The US Government gave $2000 reduction in taxes for owning a hybrid car and UK Government offers reduced car taxes on initial purchase and also exempts the electric car drivers from the city congestion charges. Natural and Political and factors helped in bringing this technology to public attention.

Toyota introduced Prius’s to the US market in 2000 initially targeting the early adopters of technology and latest gizmos. The €15m...