Hybrid Cars

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MKTG 396: Assignment #1: The Prius Leading a Wave of Hybrid Cars

Question #1:

Company: Within the company there are a few areas to look at regarding Toyota's introduction of the Prius. Areas such as financing, research, development, as well as others. When introducing the Prius, Toyota started early with its promotion of the hybrid. Spending US$15 million out of the US$190 million is spent on marketing in the 2002 year. Toyota informed its potential customers threw informative emails, TV commercials, and earth day give a way's. Toyota put a lot into research and development to come up with the hybrid with the advances in technology, such as the engine of the Prius. The engine combines a 1.5 litre, 4 cylinder gas engine, with a 33-kilowatt electric engine that runs of a nickel-hydride battery. With this new engine and normal highway driving conditions the car is said to get 106 km per gallon. It is also rated one of the "greenest" vehicles on the market. Since North Americans complain about gas mileage, and want to be environmentally friendly this seems like the way to go.

Suppliers: One of Toyota's major costs of manufacturing the Prius would be the nickel-hydride battery that the electric part fo the engine runs off of. This is also one of the main reasons why hybrid cars are so expensive compared to similar gas powered cars of the same size. But if manufacturers of hybrid cars were to see a yield in economies of scale then there would be more reason for producers of the battery to put more time and money into research and development of the battery and thus decrease costs of producing it. this would in term pass savings onto the potential buyers of the hybrid car.

Customer Market: when looking for a way to market the Prius to consumers Toyota looked at what consumers wanted in a vehicle. Things like lower gas mileage, lower emmissions, and something that what technologically appealing. so with this in mind Toyota set out to design a car to appeal...
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