5. + 5
Part 1: The “Three C” Situation Analysis
The Company/Brand
History of the company
The Toyota Prius is a full hybrid electric mid-size car developed
and manufactured by the Toyota Motor Corporation. The Prius is
the most fuel efficient gas car currently sold in the U.S. according
to the United States Environmental Protection Agency. It first
went on sale in Japan in 1997, making it the first mass-produced
hybrid vehicle. It was subsequently introduced worldwide in
2001. The Prius is sold in more than 40 countries and regions,
with its largest markets being those of Japan and North America.
The vehicle was named "Prius", the Latin word for "prior" or
"before"
6. + Company Sales Trends
6
Annual sales worldwide and by region[78]
(in thousands)
North
Year World Japan U.S.[79] Europe Other
America
1997 0.3 0.3
1998 17.7 17.7
1999 15.2 15.2
2000 19.5 12.5 5.8 5.6 0.7 0.01
2001 29.0 11.0 16.0 15.6 2.3 0.2
2002 28.1 6.7 20.3 20.1 0.8 0.2
2003 43.2 17.0 24.9 24.6 0.9 0.4
2004 125.7 59.8 55.9 54.0 8.1 1.9
2005 175.2 43.7 109.9 107.9 18.8 2.9
2006 185.6 48.6 109.0 107.0 22.8 5.3
2007 281.3 58.3 183.8 181.2 32.2 7.0
2008 73.1[80] 158.9
2009 208.9[80] 139.7 [81]
7. + The 4 P’s of marketing for this brand
7
Products
Full Hybrid Electric Mid-Size Car
Place
Distributed in Japan
http://wiki.answers.com/Q/Where_is_the_Toyota_Prius_manufactured
Promotion
http://www.youtube.com/watch?v=Tq4nrmnqY9o
http://www.toyota.com/prius-hybrid/commercial.html
PR
http://www.pamil-visions.net/toyota-prius-brake-proble/211529/
http://pressroom.toyota.com/pr/tms/toyota/toyota-announces-prices-
for-2010-89249.aspx
Price
$21,000- $27,270
Sources: blue links listed above, and http://en.wikipedia.org/wiki/Toyota_Prius
8. + 8
The Consumer of the Brand
Demographics of current brand users
− Women, ages 45-64, Married (MRI)
− The average age of a hybrid driver is 50, compared to the average age of all car buyers at
40. (hybridcars.com)
− Income: $100,000+ (MRI)
− 71 Percent of Prius owners reported in a survey from Topline Strategy Group that
they earn more than $100,000. This is more than twice the national average.
− Home value: $500,000+ (MRI)
− Education: Post College Degree (MRI)
− Hybrid owners are more than twice as likely to have a college degree as all US
adults.
-Occupation: Professional or Management, Business, and Finance Occupations (MRI)
− Geography: County Size A (MRI)
− According to a JD Power study, consumers who are willing to pay more for a
hybrid vehicle are concentrated the most in the West and the least in
the Midwest.
− The top markets of hybrid ownership are Tucson, San Francisco, Washington
DC, and Las Vegas. Households in these markets are twice as likely to own a
hybrid than households nationwide. (Scarborough Research)
− California is consistently ahead of other states in terms of new vehicle
registrations for hybrids. (hybridcars.com)
− Race: White or Asian (MRI)
9. + Psychographics 9
− Attitude:
• JD Power found that hybrid owners are “78% more likely
than the general population to be highly creative.”
• Hybrid owners are generally considered more open-
minded and spontaneous than the general population. (JD Power)
− Lifestyle:
• Hybrid owners are “active, engaged in outdoor
activities, and health-conscious.” (Scarborough)
• 33% of hybrid owners are members of a health club,
nearly twice as many as the general population. (Scarborough)
• Hybrid owners are twice as likely to go skiing, hiking, or
practice yoga. (hybridcars.com) Some other activities they
participate in more than the average person include biking,
snow skiing, and golfing.
• They consume more organic food than the average
person. (hybridcars.com)
− Beliefs:
• 38% of hybrid owners identify themselves as Democrats
and 20% of them report to be Independent but feel closer
to Democrat.
• 81% of hybrid owners “always” vote in the presidential
elections, 10% more than the general population.
(Scarborough)
10. + Consumer relationship with brand 10
-According to Consumer Reports’ 2010 Car Brands Perception Study,
consumers rated Toyota as the top environmentally friendly/green car
brand. Toyota also earned the top brand perception score, which is
calculated by the scores from all categories (safety, quality, value,
performance, design/style, technology/innovation, and environmentally
friendly/green.)
-Prius owners love to tell others of their experiences with the brand and
encourage others to purchase the car. They are “proud advocates” of their
cars. (JD Power)
-In JD Power’s 2009 owner satisfaction survey, 84.3% of owners reported
being satisfied with the Prius, taking 2nd place among all cars.
-Consumers who drive a Prius likely do so because when someone sees a
Prius, they know that it is a hybrid. Unlike hybrid models by Ford or
Honda, Toyota built the Prius from the ground up and didn’t simply use an
existing model. (New York Times)
11. + The Category
11
History of the category
In 1901, Ferdinand Porsche designed one of the earliest known gasoline electric cars, which he called
the Mixte. This design featured a gasoline engine, as well as an electric engine used to give the car a
little extra power. Although the technology of the hybrid electric vehicles (HEVs) of today are more
advanced, many of the characteristics of the Mixte’s hybrid engine are still applied to this day
(hybridcars.com, 2010).
In 1915, Woods Motor Vehicle created the Dual Power hybrid vehicle, which used an electric motor to
power the vehicle at low speeds, and a gasoline engine to power the vehicle into higher speeds up to
55 mph. 600 Dual Power vehicles were created before the company ceased production in 1918
(hybridcars.com, 2010).
The 1960’s and 70’s experienced a technological advance in the development of HEVs with the help of
Victor Wouk, commonly referred to as the “Godfather of the Hybrid.” During this period, Wouk
designed numerous HEVs, significantly a hybrid version of GM’s Buik Skylark in 1976 (Bradley
Berman, New York Times, 2010).
In 1978, David Arthurs developed the regenerative braking system, a system on which most modern
hybrids rely, in his conversion of an Opel (a German subsidiary of GM) GT. In this system of braking,
the electric motor slows the car while it collects the power and uses it to recharge the electric
batteries (hybridcars.com, 2010).
In 1989, Audi created the Audi Duo, a plug-in electric hybrid designed for engine use in the country
and electric use in the city. This model proved inefficient and only ten vehicles were said to have
been produced. The Audi Duo II was then designed in 1991, but it received little success, as well
(hybridcars.com, 2010).
12. + 12
In 1993, President Clinton created the Partnership for a New Generation of Vehicles, a government
program designed to fuel the mass production of alternative fuel vehicles. Among the partners in this
group were Chrysler, Ford and GM. This program was eventually replaced by President Bush’s
FreedomCAR initiative in 2001 (Bradley Berman, New York Times, 2010).
The modern history of HEVs began in the late 1990’s with Toyota and Honda leading the pack. The
Toyota Prius and Honda Insight, which are still popular models to this day, were two of the first
mainstream HEVs. The Toyota Prius was released in 1997 and was the first mass-produced HEV, while
the Honda Insight was released in 1999 (hybridcars.com, 2010).
In 1997, Audi found its first success in the category of HEVs with the Audi Duo III, making it the first
European hybrid ever put into production. Its success was slight, however, as its steep price made it
unpopular. Only 60 vehicles of this model were produced (hybridcars.com, 2010).
In 2004, the Ford released the first hybrid electric SUV in the Escape. Toyota answered one year later
with a hybrid version of its Highlander SUV (hybridcars.com, 2010).
In 2006, Tesla Motors unveiled its Tesla Roadster, the first and only highway-capable electric vehicle for
sale today (teslamotors.com, 2010).
13. + Overall category trends
13
Historical Size of
Category
To the right is a chart consisting of
data compiled by Yuki Tanaka and
Yukio Shigeta of the Nomura
Research Institute, taken from their
article “Upcoming Advances in the
Hybrid Vehicle Market,” issue No.
114 of the NRI Papers, published
Feb. 1, 2007. From the chart we
can see a gradual increase of
hybrid units sold globally from
1997 through 2003. From 2003 to
2005 a rapid increase occurred.
According to Tanaka and Shigeta,
during this period the U.S.
accounts for 70% of sales, Japan
20% and Europe 8%.
14. + 14
Current Size of Category
According to the Electric Drive
Transportation Association
(electricdrive.org, 2010), 246,642
hybrid units were sold in the US in 330,000
2006, 324,318 units were sold in 2007,
315,688 in 2008 and 290,237 in 2009. 247,500
As apparent in the following chart, a
slight decrease in HEVs sold over the 165,000
past few years has occurred in the US. Units
82,500
Registrations of hybrid vehicles have 0
increased, however, with 598,739
registered in 2009 (hybridcars.com, 2006 2007 2008 2009
2010) compared to 350,289
registrations in 2007 (The Associated
Press, 2010, msnbc.com).
15. +The 4 P’s of marketing for direct competitors
• 15
Products
The top five best-selling hybrid models
of 2009 were the Toyota Prius (139,682
units), Toyota Camry Hybrid (22,887
units), Honda Insight (20,572 units), Ford
Fusion Hybrid (15,554 units) and Honda
Civic Hybrid (15,119 units) (Jeff
Wysaski, autotropolis.com, 2010).
The top five best-selling hybrid SUV
models of 2009 were the Ford Escape
(12,009 units), Lexus RX400h (10,089
units), Toyota Highlander (8,635 units),
Chevy Tahoe (2,466) and Saturn Vue
(2,280 units) (hybridsuv.com, 2009).
The following graph, provided by
hybridcars.com, 2010, compares the
Prius with four of the top hybrid models
by showing the U.S. hybrid market
historical sales from 1999 through 2009.
16. + Place 16
Globally, the U.S. led as the country with the most hybrid vehicle
registrations in 2009 with 265,501 of the 598,739 total registrations. Japan
came in a close second with 249,619 registrations. Other countries included
Canada, the Netherlands, and the U.K. with less than 17,000 each
(hybridcars.com, 2010).
In the U.S., the top five cities as markets for HEVs in 2009 from first to fifth
are Los Angeles, New York, San Francisco, Washington, D.C., and Chicago.
The top five states with the highest hybrid sales in 2009 are California, New
York, Florida, Texas and New Jersey (hybridcars.com, 2010).
17. + 17
Promotion
One of the Prius’ biggest competitors, the Honda Insight, released its 2010 model with
an ad campaign deeming it “the hybrid for everyone” because it is “designed and
priced for us all.” With its release in April 2009, the 2010 Honda Insight is the least
expensive new hybrid available in the U.S (Honda Motor Co., Ltd, 2009,
world.honda.com).
Promoting themselves as luxury hybrids are many of the Lexus, Mercedes and BMW
models. For example, an advertisement for the Lexus LS600h promotes the technology
of the hybrid, while including the tag “the pursuit of perfection.”
As the first highway-compatible hybrid vehicle, the Tesla Roadster is promoting its
speed as well as its speed, “0 – 60 in 3.9 seconds,” combined with its environmental
benefits in one of its slogans, “performance with a clean
conscience” (teslamotors.com, 2010).
18. + 18
Price
In April 2009, Honda released the 2010 Honda Insight as the least expensive
new hybrid in the U.S., available for under $20,000 (Honda Motor Co., Ltd.,
2009, world.honda.com). Of the other top-selling hybrids, the Toyota Camry
Hybrid has a base price of about $26,000, the Ford Fusion Hybrid has a base
price of $28,000 and the Honda Civic Hybrid starts at $24,000
(buyersguide.caranddriver.com, 2010).
19. + 19
Part 2: Competitive Creative Analysis
Top Competitors Source: http://www.consumersearch.com/
hybrid-cars
Ford
GM
Nissan
20. + 20
Nissan Altima
http://www.nissanusa.com/ http://fastfever.com/?vid=749
This ad is for the Nissan Altima The “Quality You Can Love”
Hybrid and is displayed on the commercial speaks to people who
official Nissan website’s homepage. “Love” and care for their cars and
This ad is definitely geared towards pokes fun at those who care freak
those who place importance on the over minor scratches/hits given to
quality of the car above everything their cars. The goal of this ad is to
else. The JD Power and Associates show that the Nissan Altima has been
Award is prestigious and the mention put through over 5,000 tests and the
of the car being awarded this speaks quality assurance is backed by the
very highly of the car. The ad award for being ranked the highest
mentions that it is the highest ranked in quality among midsized cars.
car in quality which is places it well Again, Nissan goes with an “expert
against the Toyota Prius. The expert opinion” approach when advertising
opinion of JD Power and Associates is the car when mentioning the tests the
the main focus of the persuasive/ car has been put through and the JD
creative strategy in this particular ad. Power and Associates Award it
received.
21. + 21
Honda Insight
http://automobiles.honda.com/insight-hybrid/videos.aspx
This ad speaks to any potential consumer thus the slogan “Designed and Priced
for Us All” and tag line “The Hybrid for Everyone”. It can be found appealing and
entertaining because the focus of the commercial is on the price and versatility of
the car and the layout of the commercial is very modern. It says the price is
affordable so it’s attainable by many and its storage makes it convenient for many
different types of cargo and the mpg is also easy on the wallet. In the commercial
you can see somewhat of a demonstration by the different types of cargo being
loaded/unloaded and the “reason why” method is also definitely used because of
the narrator’s persuasive script.
22. + 22
Honda Civic
http://automobiles.honda.com/civic-hybrid/videos.aspx
The “Grooves” commercial speaks to the modern day, smart consumer
- those who have an interest in art, science and the environment. The
goal of this ad is to appeal to the artsy/smart audience and entertain
them with a cute, creative twist on car science. This ad had a
demonstration but it definitely focused more on image and made the
car seem like a smart/cool thing to invest in.
23. + 23
Ford Fusion Hybrid
“We Speak Car” ad on YouTube: http://www.youtube.com/watch?
v=TIAclinwG6Y
The commercial for the 2010 Ford Fusion Hybrid is talking to consumers who may
already have a brand relationship with Ford, and know that Ford “Speaks Car”. The
commercial is letting this audience know that they also “Speak Hybrid,” meaning
they will get the same Ford quality in a hybrid vehicle. The ad establishes the
Fusion Hybrid as “the most fuel-efficient mid-size sedan in America,” and directly
competes with other hybrid vehicles with claims such as “an EPA estimated 41
mpg city” and “700 miles on a single tank” – clearly using “Reason-Why”
advertising, presenting facts and figures telling the audience the reason why the
Fusion Hybrid is the most fuel-efficient American automobile in its class.
24. + 24
Ford Escape Hybrid
“Kermit Says Its Easy Being Green” ad on Google Videos: http://
video.google.com/videoplay?docid=7372950930856015507#
The Kermit the Frog ad for Ford Escape Hybrid appeals to a broad audience on
a broad level. In the end, the ad’s targeted audience is eco-friendly or
environmentally conscious consumers. In the beginning, the viewer isn’t sure
what kind of advertisement this is or for what brand. We follow Kermit on a path
while he sings “It’s Not Easy Being Green”. He eventually gets to the Escape
Hybrid and declares “Hm.. I guess it is easy being green!” If the Ford Escape
can be green, so can Kermit! The goal of this ad is to present the traditional
Escape in a new and more environmental “green” light, and in the last few
seconds of the commercial we learn the new Escape Hybrid has an estimated 36
miles per gallon. The persuasive creative strategy is obviously “Spokesperson,”
employing one of America’s most beloved (and Jim Henson’s most famous)
Muppet.
25. Part 3: The SWOT Analysis
+ 25
Strengths Weaknesses
-With new environmental knowledge, more and more -The initial cost of the vehicle may not allow you to
people are moving toward hybrid cars break even, even with the savings on gas
-Prius is "eco-friendly" car -Long- distance commuters see less savings
-Many celebrities try to make a statement by driving a -It is not as fun to drive for the accelerator is indeed
Prius, influencing others to do the same slower than a conventional car
-Competitively priced with other hybrids -The simple anatomy of a hybrid car is complex, hard
-First Hybrid car to be introduced, many customers to understand and explain, making the pitch to a
are loyal to the brand. consumer difficult
Threats Opportunities
-Recent plan to recall 311,000 of the vehicles due to -Continued popularity of “green” movement
complaints about break performance could have -High gasoline prices
significant effect on the mindset of potential buyers in the -Large number of celebrities who drive a Prius
future if damage control is not effectively implemented -Those who are typically consumers of hybrid vehicles
from a public relations standpoint. have higher incomes than most people, so they have
-Negativity on the Prius model comes almost instantly after
the money available to buy a new car
another major crisis for Toyota, involving a halt of sales of
nearly half of its models in the U.S. due to a faulty
accelerator problem that has been causing fatal accidents
-January 7, 2010 -- shares of Toyota were down more than
7% while Ford was up 2%, which may almost certainly
benefit the competition
-Affordability of the 2010 Honda Insight, released in 2009 as
the least expensive new hybrid in the U.S., possibly
attracting money-savvy customers in a struggling economy
27. + 27
Research Objectives
Toyota introduced the Prius product in 2001. The purpose of
this research is
To gain consumer insights that will drive the advertising
strategy for the Prius.
To supplement previous secondary research which included a
Company, Consumer, and Competition situation analysis, a
competitive creative analysis and SWOT analysis. This
secondary research was completed on February 9, 2010.
To inform the next stage of research. (Sentence listing
methods of forthcoming qualitative research (focus groups,
interviews, observation)).
28. + 28
Methodology
We used the following data collection methods
Created the survey using Survey Methods
Posted the survey link on Facebook
Campus intercepts at Texas State University
Personal intercepts at Whole Foods and SXSW
Data collection: March 12, 2010-March 21, 2010
Completed responses=106
29. + 29
Methodology
Sampling Method
The convenience sample is only representative of a small, select portion of the
population, where as a random sample takes the entire population into account
and draws randomly from it. The convenience sample does not completely
represent the overall population.
It differs from an ideal sample because it wasn’t random. Most of the
respondents reside in the Austin/San Marcos area. People that we did not reach
in this area were unrepresented. Based on the data collection methods that we
chose, it is not certain that all the respondents were true in the way that they
responded.
Our finding were used for exploratory research.
30. + 30
Respondent Qualifications
We are conducting a national sample.
We are sampling individuals.
Individuals must own a Prius, or must be in the market for a hybrid sedan
within the next year.
We plan to survey people with the following qualifications:
Ages 21-50
Gender: Male and Female
Occupation: Professionals with some college or college degree
Lifecycle: Young singles, young married adults
Living situation: Single family homes with kids or without kids
31. + 31
Actual Respondent Profile
Austin/San Marcos area
Sampled individuals
Individuals either owned a Prius, or are in the
market for a hybrid sedan within the next year.
Age: 22-40
Gender: 56% Male, 44% Female Prius Owners
42%
Income:
College students and prospective buyers<
Prospective Buyers
$10,000 58%
Large majority was between $60,000-
$80,000 (Mostly owners)
Prius owners:44
Prospective buyers: 62
Total Surveyed: 106
32. + 32
Collected Data
Question 1
Screening question
Do you own a Prius?
Thirty-five percent of the respondents
own a Prius.
36%
64%
Yes
33. + 33
Collected Data
Rate the importance of each of the following when it comes to
your Prius. On the scale below, please rank the following items
30 accordingly based on their importance to you.
Question 2
Owner
Most respondents (66%) felt that
23
fuel-efficiency is “extremely
important” as well as safety
( 58%) when it comes to their
Prius.
15
Few respondents (2%) felt that
fuel-efficiency was “not
important.” Few respondents also
felt that price, appearance,
reputation, and safety were “not 8
important.”
0
Fuel-Efficiency Price Appearance Reputation Safety
Extremely Important Very Important Neutral Not Important
Not at all Important
34. + 34
Collected Data
Question 3
Owner
Overall, how satisfied are you with your Prius?
30
The majority of respondents (59%)
were “satisfied” with their Prius. The
“extremely satisfied” category was
the second highest chosen with 27%
23
of respondents.
Few of the respondents (2%) were 15
“dissatisfied” or “extremely
dissatisfied” with their Prius.
8
0
Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied
35. + 35
Collected Data
What is it about your Prius that you enjoy the least? On the scale
below please rank the following items accordingly based on your
satisfaction with each.
25
Question 4
Owner
20
The majority of respondents were
neutral in all of the categories,
except for “appearance” where
most respondents (45%) were 15
“satisfied.”
The fewest amount of respondents 10
were “extremely satisfied” within
each category.
5
0
Lack of Horsepower Appearance Handling of the Car Price
Extremely Dissatisfied Dissatisfied Neutral Satisfied
Extremely Satisfied
36. + 36
Collected Data
Does the current Toyota brake recall affect the
Question 5
way you feel toward your car?
Owner
The majority of respondents (32%) 15
replied “not much” when it comes to
being affected by the brake recall.
11
The second highest category of
respondents (27%) said they were
“slightly” affected.
8
The same amount of respondents
(16%) were “definitely affected,”
and felt “neutral” toward the brake 4
recall.
Few respondents said they were “not0
at all “affected.” Definately yes Slightly Neutral Not Much Not at all
37. + 37
Collected Data
Question 6
Screening
Do you plan to purchase a hybrid sedan in the next year?
The majority of respondents plan to
purchase a hybrid sedan within the
next year, as shown by 71 percent.
29%
71%
Yes
38. + 38
Collected Data
Question 7 What are you concerned with when purchasing a hybrid vehicle?
40 On the scale below, rate the following items accordingly based on
Prospective buyer
their importance to you
When it came to fuel-
efficiency, price, and safety,
the majority of respondents 30
felt these benefits were
“extremely important” when
it came to purchasing a Extremely Important
hybrid sedan. Very Important
20
Neutral
When it came to appearance Not Important
and the reputation of the car, Not at all Important
the majority of respondents
(42%-44%) were “neutral.” 10
In every category, the fewest
amount of respondents felt
like the benefit was “not 0
important.” Fuel-Efficiency Price AppearanceReputation Safety
39. + 39
Collected Data
What brand comes to mind when you think of hybrid sedans?
2%2%
2%
Question 8 3% 5%
Prospective buyer
The majority of respondents (53%) said that
Toyota came to mind first when thinking of
hybrid sedans.
The least amount of respondent chose Hyundai,
21%
Mercedes, and Lexus as the brand that came to
their mind when thinking of hybrid sedans. 53%
13%
Toyota Honda Ford Kia Hyundai Mercedes Lexus Mazda
Other
40. + 40
Collected Data
How much will the recent brake recall on certain Toyota models
Question 9 affect your purchasing decision?
Prospective buyer 30
The majority of respondents
(40%) said that the recent
Toyota brake recall “definitely
23
will” affect their purchasing
decision.
The fewest amount of 15
respondents (8%) said that
the recent Toyota brake recall
will “definitely not” affect
their purchasing decision. 8
The remainder of respondent
choices fell in the middle.
“Slightly” (18%), “not 0
sure” (21%), and “probably Definately will Slightly Not sure Probably not Definately not
not” (13%).
41. + 41
Collected Data
Question 10
Owner & prospective buyer
How concerned are you for the environment?
50
Most of the overall respondents
(45%) said that they “very
much” care for the environment. 38
Few respondents fell below 25
neutral on their concerns for the
environment.
13
0
5 (Very Much) 4 3 (Neutral) 2 1 (Not at All)
Overall Prius Owners Prospective Buyers
42. + 42
Collected Data
Do Toyota’s advertising efforts (in regard to the brake recall)
affect your impression of the company?
Question 11
Owner & prospective buyer
50
The majority of the respondent
impressions (40%) were neutrally
38
affected in regard to the
advertising efforts of Toyota post-
brake recall. 25
The fewest amount of respondents
13
(7%) were “very much” affected
by the advertising efforts.
0
5 (Very Much) 4 3 (Neutral) 2 1 (Not at All)
43. + 43
Collected Data
Question 12
How many miles do you commute per weekday?
Owner & prospective buyer
50
The majority of respondents
(32%)said they commute 10-30 miles 38
per weekday.
25
The fewest amount of respondents
(10%) said they commute 51-70
miles per weekday. 13
0
Less than 10 10-30 31-50 51-70 More than 71
Overall Prius Owners Prospective Buyers
44. + 44
Collected Data
Gender
Question 13
Demographic
The majority of respondents were male.
44%
56%
Male Female
45. + 45
Collected Data
Question 14
Demographic Age
100 96
The most represented age
group was 31-40 at 32%.
75
The least represented age
group were people over 60 at
4%. 53
50
25
25
12 12
7
3
0
Under 21 22-25 26-30 31-40 41-50 51-60 Over 60
46. + 46
Collected Data
Question 15
Annual Income
Demographic 20
The majority of
respondents (18%) made
less than $10,000 15
annually, slightly ahead
of those that made
$70,000-$79,999
annually. 10
The fewest amount of
respondents made
$90,000-$99,999 or 5
$150,000+; both at 2%.
0
47. + 47
Conclusion
•Current owners of the Toyota Prius have admitted to buying the car for its safety and fuel-efficiency. The
“lack of horsepower” answer choice was the respondent’s least favorite feature, although it did not have
anywhere near the same amount of votes as “neutral”. Most current owners are satisfied with the overall
performance of their car. Obviously, this consumer is one who continues to look for a car that will satisfy
their fuel-efficiency and safety needs.
Toyota does not have to worry about being overlooked by consumers when shopping for a hybrid
sedan, as it is certainly the first brand that comes to their minds. Although Toyota’s advertising efforts
are aiding in the consumer’s overall impression of the company, the effect it is having on the consumer’s
decision to buy a Toyota car is problematic. The brake recall is, so far, playing a vital role in the
decisions of those who plan to purchase a hybrid sedan.
Our information paints a picture of a typical consumer in our target market: an eco-conscious, 31-40
year old commuter who drives anywhere between 10-50 miles per day. This person cares for their
environment a great deal and takes safety ratings and fuel-efficiency into consideration most when
buying a hybrid vehicle. The amount of time spent in their car is definitely an area we must look into
more in depth.
48. + 48
Further Research
We would like to explore more about our target market and their psychographics in
order to reach them more effectively through advertising.
We will pose more open-ended questions regarding why they enjoy or dislike certain
features/benefits of the Toyota Prius.
We will ask what Toyota could be doing to better improve their brand image regarding
the recent brake recall.
A more in depth list of demographic questions will help us further segment the market.
Geography, Education, Marital Status, Race, Religion and other demographics are left
untouched in our condensed survey.
By using the VALS system, we could further segment the consumer marketplace on the
basis of the personality traits that drive consumer behavior. With this information, our
team could develop and execute more effective strategies.
49. + 49
Survey
✦ 1. Do you own a Toyota Prius?
✦ Yes- continue to question 2
✦ No- continue to question 6
✦ 2. Rate the importance of each of the following when it comes to your Prius. On a scale of 1-5,
please rank the following items accordingly.
✦ 1 (Not very important) 2 3 4 5 (Very important)
✦ Fuel-Efficiency
✦ Price
✦ Appearance
✦ Reputation of the car
✦ Safety
✦ 3. Overall, how satisfied are you with your Prius? (Circle one)
✦ 1(Not at all) 2 3 4 5 (Very much)
50. + 50
Survey
✦ 4. What is it about your Prius that you enjoy the least? On a scale of 1-5, please rank the following
items accordingly.
✦ 1 (Extremely satisfied) 2 3 4 5 (Extremely dissatisfied)
✦ Lack of horsepower
✦ Outer appearance
✦ Handling of the car
✦ Price
✦ 5. Does the current Toyota brake recall affect the way you feel toward your car? (Circle one)
✦ 1 (Not at all) 2 3 4 5 (Very much)
✦ 6. Do you plan to buy a hybrid sedan in the next year?
✦ Yes- continue with question 7
✦ No- Skip to question 10
51. + 51
Survey
✦ 7. What are you concerned with when purchasing a hybrid vehicle? On a scale of 1-5, rate the
following items accordingly.
✦ 1 (Not at all concerned) 2 3 4 5 (Very much concerned)
✦ Fuel-Efficiency
✦ Price
✦ Appearance
✦ Reputation of the car
✦ Safety
✦ 8. Which maker comes to mind when thinking of Hybrid Sedans?
✦ Toyota
✦ Honda
✦ Ford
✦ Kia
✦ Hyundai
✦ Mercedes
✦ Lexus
✦ Mazda
✦ Other (Please Specify) __________
52. + 52
Survey
✦ 9. How much will the recent brake recall on certain Toyota models affect your purchasing decision?
(Circle one.)
✦ 1 (Not at all) 2 3 4 5 (Very much)
✦ 10. How much do you care for the environment? (Circle one)
✦ 1 (Not at all) 2 3 4 5 (Very much)
✦ 11. Do Toyota’s advertising efforts (in regard to the brake recall) affect your impression of the
company? (Circle one)
✦ 1 (Not at all) 2 3 4 5 (Very much)
✦ 12. How many miles do you commute per day during the week?
✦ Less than 10
✦ 10-30
✦ 31-50
✦ 51-70
✦ More than 71
53. + 53
Survey
✦ 13. Gender:
✦ Male
✦ Female
✦ 14. Age:
✦ 18-21 yrs old
✦ 22-25 yrs old
✦ 26-30 yrs old
✦ 31-40 yrs old
✦ 41-50
✦ 51-60
✦ 61 or over
56. + 56
Research Objectives
“Toyota is currently experiencing a major PR disaster with its recent product recall. To
maintain brand loyalty and increase sales of 2010 models during this crisis, the Toyota
Prius is launching an advertising campaign in May 2010.”
To gain consumer insights that will drive the advertising strategy for the Prius.
To supplement previous secondary research and survey research conducted for the Toyota
Prius.
To explore:
Find out more detailed information about the people whom we wish to speak to (lifestyle,
life stage, education, marital status, race, region) by conducting one-on-one interviews so
that we can reach them more effectively.
Uncover how Toyota can improve their reputation through the eyes of the people we wish
to speak to.
Discover in further detail what features and benefits of the Prius that consumers like and
dislike, and why.
Find out in what ways the people we want to learn about are eco-conscious so that we can
find effective ways to target them.
57. + 57
Methodology
We conducted 5 one-on-one interviews
4 in person
1 via Skype
15-30 minute interviews
Research was conducted in the San Marcos/Austin area in the homes of the interviewers, and
also the homes of the interviewee’s
April 8th-April 10th, 2pm-8pm
Who interviewed who:
•Kim, Beatriz, and Corey (Perspective Buyers)
•Kathryn and Amy (Prius Owners)
Recorded via Skype and digital camera
Brand Personification- to give insight on the interviewee’s perception of car brands. We gave
our interviewees a list of car brands and asked them to describe each brand as either a member
of a family or a person at a party.
58. + 58
Interview
Prius Owners:
2 owners interviewed
Ages 21-50
Male and Female
Must reside in the United States
Must own a Toyota Prius
Lifestyle: Eco-conscious commuters with a set, weekly schedule or routine drive
Life stage: People about to start or are established in their careers
Occupation: Professionals with some college or college degree
Lifecycle: Young singles, young married adults
Living situation: Single family homes, or apartment dwellers with kids or without kids
59. + 59
Interview
Hybrid Sedan Buyer:
3 prospective buyers interviewed
Ages 21-50
Male and Female
Must reside in the United States
Must be in the market for a hybrid sedan
Lifestyle: Eco-conscious commuters with a set, weekly schedule or routine drive
Life stage: People about to start or are established in their careers
Occupation: Professionals with some college or college degree
Lifecycle: Young singles, young married adults
Living situation: Single family homes, or apartment dwellers with kids or without kids
60. + 60
Who We Talked To
All participants were between 22-45. Most participants were in their early-
mid 20’s. The groups were primarily women, with one male interviewee. All
groups displayed eco-conscious behavior and passed our screener.
Group 1 (Prius Owner)
Both reside in Austin
Female, married with one child
Female, single with no children
Group 2 (Hybrid sedan buyer)
Reside in the San Marcos/Austin/Houston area
Female, single with no children
Female, married with no children
Male, single with no children
62. + 62
Who We Talked To
Joy M. –Prius owner
45 years old
Resides in Austin, TX
Currently a stay-at-home mom
Worked in the hotel industry before daughter
was born
Eco-conscious:
Recycled before curbside recycling was
available.
Looking into solar panels for house
Has solar panels on husband’s office
Replaced windows in house with more
efficient newer windows
Solar hot water heater
Never waters grass
Getting water recapture system
Starting to compost
Values Family
Has an 11-year-old daughter
Commutes 40 miles roundtrip every weekday
Graduated from college in Vancouver
63. + 63
Who We Talked To
Kelsey- Prius owner
25 years old
Resides in Austin, TX
Apartment Dweller
Single, no children
Student at Austin Community College
Currently a Certified Nursing Assistant at
Assisted Living facility
Eco-conscious:
Cares for the environment
Recycles paper and plastic,
apartment complex has recycling bins
Tries to conserver water/energy
Values Family and Friends
Father drives a Prius, “Toyota Family”
Commutes approximately 50 miles
roundtrip every weekday
64. + 64
Who We Talked To
Kim-Prospective buyer
Lives in San Marcos, TX
22 years old
Single with no children
Student at Texas State University
Graduates in May, job lined up
Eco-conscious:
Cares for the environment
Recycles paper and plastic
Into the “green” movement
Buys organic clothing and food
Member of the “Adopt A Highway” program
Drives to her sisters house daily which is 30 miles
roundtrip
Apartment dweller
65. + 65
Who We Talked To
Jessie- Prospective buyer
24 years old
Works in the health industry
Currently drives a 2008 Hyundai Elantra
Commute to work roundtrip is 20 miles
Also commutes all over Austin for photography
adventures on the weekends.
Eco-conscious:
Eats organic food
Keeps AC no higher than 78 degrees
Recycles plastic, glass, paper
If it gets hot, she opens the window
Uses canvas bags for groceries
Married with no children
Apartment dweller
Student at Austin Community College
66. + 66
Who We Talked To
Brad- Prospective buyer
28 years old
Computer programmer
Graduated from Sam Houston State
University
Commutes 20 miles to work one way in
Houston
Eco-conscious:
Recycles grocery bags, cans and
plastics
Makes sure appliances are turned
off when not being used
Environment is important to him
Single with no children
Apartment dweller
67. + 67
Key Insights
Both Prius owners were eco-conscious in other areas of
their lives besides the car they drive.
(Joy, 45, Stay-at-home mother of one from Austin, Prius owner)
“We are extraordinarily eco-conscious”
“When you say what do I do in my spare time, I worry about the
environment.”
“We are recyclers beyond recycling.”
(Kelsey, 25, CNA Austin, Prius owner)
“I recycle paper and plastic.”
“My entire family is eco-friendly and always will be.”
68. + 68
Key Insights
For Prius owners, buying a Prius satisfies their need to be
closely associated with others, otherwise known as affiliation.
(Kelsey, 25, CNA, Austin, Prius owner)
“I’ll be driving down the road and wave to another Prius
driver.”
Family members and acquaintances had a large impact on the
owners buying decision.
(Kelsey, 25, CNA, Austin, Prius owner)
(When asked about the purchasing process) “My dad has
one [a Prius], so I knew that’s what I’d be driving.”
69. + 69
Key Insights
The Prius owners, and one hybrid prospective buyer, were
brand loyal to Toyota.
(Joy, 45, Stay-at-home mother of one, Austin, Prius owner)
(When asked about the recent recall) “Will it stop me from buying
another Toyota? No.”
“I just have a lot of respect for Toyota.”
(Jessie, 24, married health care worker, Austin, Prius owner)
“Toyota, before this current situation, has always been very good. I
used to own a Toyota, I loved my Toyota, it was a great car. I would
buy another Toyota.”
(Kelsey, 25, CNA, Austin, Prius owner)
“From as far as I can remember, my dad has always owned a
Toyota.”
70. + 70
Key Insights
As far as the recall goes, one Prius owner was surprisingly
understanding toward the situation and willing to forgive the
company although they wish Toyota would have revealed the
problem sooner. A prospective buyer felt that Toyota is taking the
right steps.
(Joy, 45, Stay-at-home mother of one, Austin, Prius owner)
“I just have a lot of respect for Toyota and the fact that Mr. Toyota himself
apologized, but they should have come out sooner”
“As a manufacturer of something that people in him, he should have had more
integrity and more transparency.”
“I think a lot of car companies do the same thing.”
(Brad, 28, computer programmer, Houston, Prospective buyer)
“It’s unfortunate, but at the same time I think they’ve done a great job trying to
ameliorate the situation.”
71. + 71
Key Insights
When performing the engagement technique with the prospective
hybrid buyers and Prius owners, we noticed that Mercedes and
Lexus are perceived as snobby brands. Hyundai is perceived as
somewhere in between Honda and Ford.
(Jessie, 24, married health care worker, Austin, Prospective buyer)
“Honda and Toyota are more eco-friendly, world conscious people.”
“Hyundai is somewhat geared toward trying to break into the Honda and Toyota
crowd.”
“Mercedes and Lexus are more snobby, stuck-up people.”
72. + 72
Key Insights
When asked about the different car brands during the Family of Brands
engagement technique, one Prius owner felt that Ford would be the
grandfather, Lexus and Mercedes the parents, and Honda, Toyota and
Hyundai would be the children.
(Joy, 45, stay-at-home mother of one, Austin, Prius owner)
“Ford would be the grandfather, because it’s a very old company.”
“Lexus and Mercedes would be the parents because they have already earned all
of their money.”
“Honda, Toyota, and Hyundai would be the children.”
73. + 73
Key Insights
The prospective hybrid buyers felt that the Prius may not be
able to accommodate them when it came to starting a
family.
(Jessie, 24, married health care worker, Austin, Prospective buyer)
“If we did have children, by the time we get car seats, there’s really not any
more room for anybody else in the car if you wanted to bring them along, or
stroller or things like that.”
(Kim, 24, single student, prospective buyer)
• “It’s a little small, I plan on taking road trips with my friends and family when I
graduate, so…”
74. + 74
Key Insights
Some perspective buyers find it important to be part of the “Go
Green” trend, in other words, they want to consider themselves
trendy. Perspective buyers find it attractive that some
celebrities are driving hybrid vehicles. The aesthetics of various
cars were mentioned in the interview multiple times.
(Kim, 24, single student, Prospective buyer)
• “Going green is ‘in.’”
75. + 75
Insights Summary
Eco-conscious
Learned that all owners cared about the environment
One participant grew up in an environmentally-friendly household, now making recycling a habit.
Others mentioned solar-panel installation and conservation.
Affiliation/Trendy
Another prominent theme among owners was the community associated with Prius drivers.
Buyers may not be loyal to the Toyota brand, but may still want a Prius because it is trendy to have one.
Brand Loyalty/Confidence
Buyers and owners showed signs of brand loyalty
Many said they would purchase a Toyota again.
A few mentioned their loyalty has spanned many years.
Recall
Owners were understanding to the recall situation, willing to forgive the company’s problems, and still
respected Toyota as a company.
All agreed that the proper steps are currently being taken to fix the problems.
Engagement Technique
Ford, Mercedes, Lexus, Hyundai, and Toyota were presented in the “Family and Party of Brands/Brand
Personification” Technique
Participants noted Mercedes and Lexus brands were perceived as snobby and rich
To some, Hyundai was seen in between Honda and Ford, while to others, Hyundai represented the bottom of
the totem pole and the least-favored company.
Many placed Lexus and Mercedes in the parental or older roles.
Family Sedan
Prospective buyers were reluctant to choose the Prius based on size.
One participant felt that after car seats, there may not be much extra room.
76. + 76
Screener
Screener
Hello, my name is _______ from BerryBee market research. We are looking for participants to take part in
a focus group, and would like to ask you a few questions. We are not selling anything nor will we follow-up
with any sales calls as a result of this study. The information you provide will positively impact many
products and services offered to people like you.
1) We're looking for people working in certain industries. Have you, your family or any of your close friends
ever worked in the following industries?
Advertising agency/public relations
(End)
Marketing research/product development
(End)
Manufacturer, distribution or marketing of hybrid vehicles
(End)
Automotive sales
(End)
None of these
(Go to question #2.)
77. + 77
Screener
2) When did you last participate in market research?
_______________________________________________________
(If less than 3 months ago, please end. If more than 3 months ago, continue to question #3)
3) What was the subject of that research?
_______________________________________________________
(If automobile related, please end.)
4) Do you currently own a Toyota Prius?
☐ Yes (Continue to question #6)
☐ No (Continue to question #5)
5) Are you currently in the market for a hybrid sedan?
☐ Yes
☐ No (End)
78. + 78
Screener
6) Are you between the ages of 21 and 50?
☐ Yes
☐ No (End)
7) Please indicate your age.
________
8) Please indicate your gender.
☐ Male
☐ Female
9) Do you currently reside in the United States?
☐ Yes
☐ No (End)
79. + 79
Screener
10) How many miles do you commute per weekday?
☐ Less than 10 (End)
☐ 10 – 30
☐ 31 – 50
☐ 51 – 70
☐ more than 71
11) Do you have a college degree?
☐ Yes
☐ No (End)
12) Please indicate your marital status.
☐ Single
☐ Married
13) Do you have any children?
☐ Yes (how many? _______)
☐ No
80. + 80
Screener
14) Do you live alone?
☐ Yes
☐ No (how many people live with you? ______)
15) What is your profession?
_______________________________________________
(If student, skip and go to question # 17)
16) How long ago did you begin your profession?
17) Please describe any routine commutes that you would make during a typical weekday.
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
81. + 81
Screener
18) How much do you care for the environment? (Circle one)
1 2 3 4 5
(Not at all) (Very much)
19) What actions, if any, do you take towards bettering the environment?
__________________________________________________
__________________________________________________
__________________________________________________
20) Imaging that you could travel for one day into another time with a time machine. Which decade or century
would you like to see? What would you experience on your trip?
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
82. + 82
Screener
21) Think for a moment about your personality and your comfort level in a one-on-one interview. Which of
the following best describes you?
☐ I am extremely comfortable sharing my opinions just about anywhere, to anyone
☐ I am very comfortable sharing my opinions in a one-one-one interview
☐ I am somewhat comfortable expressing my opinions in a one-on-one interview
☐ I am somewhat uncomfortable sharing my opinions in a one-on-one interview
☐ Expressing my opinions in a one-on-one interview makes me very uncomfortable
83. + 83
Discussion Guide
Discussion Guide- Prospective buyers
Warm up questions/General personal questions (5 minutes)
Tell me about yourself.
1. What do you do when you have free time? OBJ 1
2. What are the three most important things in your life? OBJ 1
3. Do you have children? OBJ 1,4
a) How many?
b) What are their ages?
c) What kind of activities are they involved in?
4. Do you own other cars besides your Prius? OBJ 1
5. Where do you drive during a normal day? OBJ 1
84. + 84
Discussion Guide
6. In what ways do you consider yourself to be eco-conscious? OBJ 1
-----ENGAGEMENT TECHNIQUE----- (10 minutes)
General car questions (8 minutes)
1. Tell me the reasons why you are considering purchasing a hybrid.
2. Explain what your ideal car would be.
3. Describe your experience looking for cars so far.
a) How did you begin the process?
b) Have you done any research?
c) Which cars have you looked at?
d) What did you think of them?
85. + 85
Discussion Guide
Prius Questions (7 minutes)
1. Describe your feelings toward the Prius. OBJ 2
2. Would you consider purchasing a Prius? OBJ 2
a) Why/Why not?
3. How does the current recall affect your attitude towards the Prius and/or Toyota? OBJ 2
4. Explain what Toyota should do to get you to buy a Prius. OBJ 2
86. + 86
Discussion Guide
Discussion Guide- Prius owners
Warm up questions/General personal questions (5 minutes)
1. Tell me about yourself.
a) What do you do when you have free time? OBJ 1
b) What are the three most important things in your life? OBJ 1
c) Do you have children? OBJ 1,4
1. How many?
2. What are their ages?
3. What kind of activities are they involved in?
2. Do you own other cars besides your Prius? OBJ 1
3. Where do you drive during a normal day? OBJ 1
4. In what ways do you consider yourself to be eco-conscious? OBJ 1
87. + 87
Discussion Guide
-----ENGAGEMENT TECHNIQUE----- (10 minutes)
General Prius questions (8 minutes)
1. How long have you owned your Prius? OBJ 1
2. What kind of cars have you previously driven? OBJ 1
3. What initially drew you to the Prius? OBJ 3
4. Tell me about the process you went through when purchasing your Prius. OBJ 1,2
5. Were you considering any other hybrid sedans? OBJ 1,2,3
a) If so, why did you choose the Prius over the other choices?
6. What is it about your Prius that you enjoy the most? OBJ 3
7. If you could change anything about your Prius, what would it be? OBJ 3
88. + 88
Discussion Guide
8. Would you recommend the Prius to your friends? OBJ 2,3
The recall (7 minutes)
1. How did you initially hear of the recalls involving Toyota cars? OBJ 2
2. Tell me how you feel about the way Toyota has responded to the recall. OBJ 2
3. Were you contacted in any way by Toyota or your dealer regarding the recall? OBJ 2
4. What would you have done if you were in charge of Toyota? OBJ 2
5. If you could say anything to the President of Toyota, what would you say? OBJ 2,3
89. + 89
Engagement Exercise
Engagement Exercise:
Honda Toyota
Mercedes Lexus
Ford Nissan
Hyundai Chevy
90. + 90
Engagement Narrative
Engagement Exercise Narrative:
Choose one from below:
I have names of different car companies. I want you to pretend they are people at a
party. Tell me what about the kind of person each brand would be. You can use age,
gender, personality, etc.
I have names of different car companies. I want you to pretend they are the different
people in a family. Tell me what about the role each person will play. (Mom, Dad,
Daughter, Grandma, etc.)
92. + Creative Brief
92
Why are we advertising?
To reinforce and promote desire and interest for the Toyota Prius.
Who are we talking to?
We are talking to men and women ages 21-50, single or married, who live in the U.S. in primarily urban
areas. They are professionals with some college or college degrees. They are otherwise known as “Eco-
Concerned Solutionists.”
What do we know about them?
They place a high value on protecting the environment. They would be classified as “Thinkers”
according to the VALS framework, since they are mature, educated individuals who are receptive to
social change.
What do they currently think/feel/do?
Prius owners are generally happy with their car, but seem to be conflicted over their satisfaction with the
way Toyota has handled the recall situation. Many of them feel a strong sense of belonging with other
Prius owners.
What would we like them to think/do?
“They Toyota Prius is the leader in this hybrid transportation movement. I’m going to buy one.”
What is the main idea we need to communicate (the proposition)?
The Toyota Prius is a reliable and fuel-efficient vehicle.
93. + 93
Creative Brief Cont’d
Why should they believe it?
The Toyota Prius has been among the most popular hybrid vehicles since 1997 and is currently the
most fuel-efficient hybrid car sold in the U.S. according to the United State Environmental Protection
Agency.
Positioning Statement
For hybrid sedan buyers, the Toyota Prius is the best hybrid sedan because of its fuel-efficiency.
Brand Personality
The Toyota Prius is dependable and safe, yet trendy and vivactious, evoking a happy-go-lucky spirit.
The Prius embodies a clean and beatiful environment and stands for environmentally conscious
values. A mature intellectual, the Prius is both the embracer of technological advancement and the
tree-hugger.