Marketing Research
The case provides an excellent opportunity to compare Toyota's marketing of the introductory and follow-up models—very different campaigns, well thought out and implemented. At introduction, Toyota used the Internet very heavily but later shifted to a strategy using more mass-market media. This case ends with an examination of the competition and the emerging hybrid market.
Q1
The Company: The Company has expended plenty of money on R&D and marketing of the Pries. Why? Toyota expects the Prius to set the standard for the entry of a line of hybrids from minicompacts to luxury vehicles. Thus, the car is an important component of company strategy. To successfully introduce the Prius and build this new line of vehicles will require coordination within the company. The second generation of Prius has already caused problems within the company. Production was increased at one plant necessitating a cut in production for other lines.
Suppliers: With the successful introduction of the Prius, companies such as Panasonic may invest more in R&D to develop cheaper batteries. If they can do so, this will result in lower prices that, in turn, may further stimulate demand. Thus, it is to Toyota's advantage to work with suppliers to encourage this R&D.
Marketing Intermediaries: The most important marketing intermediaries here would be dealers. Toyota had to prepare materials for dealers and their salespeople so that they could sell the Prius. Now, they have to "teach" purchasers how to drive the cars to get maximum fuel efficiency. A shortage of cars for the second generation of Prius is causing problems with dealers who want more and could sell the additional cars. In turn, dealers marking up the cars can negatively injure relationships with the company, who does not want to see the price of the cars inflated. There is also a major issue of why more cars were allocated to Japan when the United States is the bigger market.
Customers: The case indicates that
Q1
The Company: The Company has expended plenty of money on R&D and marketing of the Pries. Why? Toyota expects the Prius to set the standard for the entry of a line of hybrids from minicompacts to luxury vehicles. Thus, the car is an important component of company strategy. To successfully introduce the Prius and build this new line of vehicles will require coordination within the company. The second generation of Prius has already caused problems within the company. Production was increased at one plant necessitating a cut in production for other lines.
Suppliers: With the successful introduction of the Prius, companies such as Panasonic may invest more in R&D to develop cheaper batteries. If they can do so, this will result in lower prices that, in turn, may further stimulate demand. Thus, it is to Toyota's advantage to work with suppliers to encourage this R&D.
Marketing Intermediaries: The most important marketing intermediaries here would be dealers. Toyota had to prepare materials for dealers and their salespeople so that they could sell the Prius. Now, they have to "teach" purchasers how to drive the cars to get maximum fuel efficiency. A shortage of cars for the second generation of Prius is causing problems with dealers who want more and could sell the additional cars. In turn, dealers marking up the cars can negatively injure relationships with the company, who does not want to see the price of the cars inflated. There is also a major issue of why more cars were allocated to Japan when the United States is the bigger market.
Customers: The case indicates that