Case Study Questions – Toyota 1. I find that the Toyota Prius is in the Maturity stage of the product life cycle due to the massive competition arising from other manufactures such as Ford, GM and Honda. Due to this, Toyota is only receiving modest profit from the sales of the vehicle (Perreault, Cannon, McCarthy, 2006, p. 666). The Prius quickly went through the stage of introduction and growth since it’s introduction in the US market in 2000 (p. 666).
Because of this, the Prius is beginning to move into the final stage of decline since they have to now compete by introducing newer and better models of the Prius (p. 666). 2. Toyota’s marketing strategy centers around consumers and their needs. Originally, Toyota marketed Prius as an alternative to fuel only vehicles taking the earth friendly approach. Marketing consisted of advertisements, promotions, vehicle incentives, sponsorships, press releases and Toyota’s reputation to draw in consumers.
As competition arose, Toyota looked to market what consumers wanted, bigger, more powerful and better designed vehicles (p. 666). Toyota began introduction to their second generation Prius, marketing what suited their consumer’s needs. Today, Toyota still uses the same marketing tools as before, but now they have expanded into a broader market giving consumers options (p. 666). 3. I think that on the “greener” side of things, it would make since to lean towards conversion of all Toyota models to hybrids, but I think that would come at a great cost to Toyota.
Instead, I think Toyota should look at total conversion to electrical vehicles or alternative fuel powered vehicles. This is a much more environmental friendly approach and with fuel prices rising and the possibility of fuel diminishing, Toyota needs to look to the future. People are still buying all gasoline powered vehicles even with the option of hybrids available. I think people don’t want a medium to go too. They want either want a gasoline powered vehicle or they’re willing to hold out until those are extinct and their only option is an alternative vehicle.
Cost is a huge issue. With the high price tag and limited available options, people want the best value. That right now is gasoline vehicles with lots and lots of options, not expensive hybrids with even more expensive options. Toyota could make a difference with all hybrid vehicles, but until costs are down and more options available, I think they need to go along with what people want. There are still questions on how beneficial hybrids are to the nvironment and if there really is any benefit in what could be saved by consumers in fuel versus the price paid out initially. As for me, I’ve always been a huge Toyota fan, but I’m still not ready to invest in their hybrids or any other brand of hybrids. Reference Perreault, William D. , Jr. , Joseph P. Cannon, and E. Jerome McCarthy, Basic Marketing: A Marketing Strategy Planning Approach, (17th Edition), Irwin McGraw-Hill, 2006. [978-0-07-338105-3]