Prius Case Study
Prius Case Study
Prius Case Study
1. What microenvironmental factors affected the introduction and re-launch of the Toyota
Prius? How well has Toyota dealt with these factors?
The consumers, competitors and suppliers were affected with the introduction and the re-launch
of the Toyota’s Prius.
When Toyota reported about a voluntary global recall on certain Prius models which involved
millions of vehicles sold in the US, the microenvironmental factor of the company was
influenced. Toyota then had to re-evaluate and re-design a new marketing plan. This recall, also
affected the suppliers who had an unbreakable connection with the customers satisfaction and
safety when the Prius was made by defective parts which could damage the overall satisfaction
of the customer. According to Toyota’s newsroom site, the report of there having an
"unconfirmed accidents alleged to be related to this condition, one of which reported a minor
injury" can cause a serious drop in sales of Toyota’s as a whole. In addition, competitors could
use this situation as an opportunity, for the drop in sales to regain the lost customers of the
Toyota Prius. The media placed newspaper articles and televised broadcasts that a recall was
established by Toyota, this in turn affected the most important aspect in Toyota's
microenvironment: their customers. They had to maintain a strong relationship with their loyal
customers and assure them that they would be taken care of. As an element of the recall, the
vehicles that were involved were re-placed at no charge to the owner.
Toyota mailed notifications, advising owners of such recall and that further notice will be made
available to them. If additional detailed information was needed, they could contact Toyota
Customer Experience Center for answers. In efforts to dealing with this microenvironmental
factor, Toyota made the information and resources available for all customers affected.
Nowadays, as customers, we would not wait less than this from the company, as to me.
2. Outline the major microenvironmental factors - demographic, economic, natural,
technological, political and cultural - that affected the introduction and relaunch of the
Toyota Prius. How well has Toyota dealt with each of these factors?
Demographic situation has its impact on company's sales and constantly makes its adjustments to
company’s strategies and plans. Due to the change in demographic situation in U.S. (drop in
marriage numbers and number of kids), company had to adjust as the need for huge SUV has
lessened. There are more people deciding to go with the fuel-efficient hybrid, hence the Toyota
Prius. This evolved need has increased the sales of the Prius making it the car that has more
benefits than just a mode of transportation.
Economic environment is a factor that affects the spending patterns and buying power of the
consumer. The affordability and sustainability of the Prius has adapted with the changes in
income for the American consumers. Toyota has closely watched the economic forecast and with
sufficient notice, Toyota's sales increased by many times.
Natural factor was the increase in gas prices. A fuel-efficient car, such as the Prius is
economically and environmentally friendly. Toyota created the hybrid that combines a gas with
and electric, using less gas than the usual car.
Technological factor also impacted the sales of the Prius. With their advanced technology and
other features, plus affordable price they made a perfect fit in the market.
Political and cultural factor has an enormous impact on the production and sales of the Prius.
With the ‘going green’ movement on the rise, purchasing a hybrid for the cost efficiency is not
the only reason but also it is healthy to our natural environment and resources.
They have done a great job with these factors; it is impressive how well they fit in the industry
and made it work.
3. Evaluate Toyotas marketing strategy so far. What has Toyota done well? How might it
improve its strategy?
They have targeted all possible demographic categories of people, engaged technological gigs by
filling all gaps in customer's needs. The only thing that Toyota may want to improve is the
vehicles appearance. Although, they can work on improvement in fuel efficiency to maintain the
leading position in tech industry and expand on a new markets.
4. GMs marketing director for new ventures, Ken Stewart, says, “If you want to get a lot of
hybrids on the road, you put them in vehicles that people buying now”. This tends to
summarize the U.S. automakers approach to hybrids. Would you agree with Mr. Stewart?
Why or why not?
This statement has its place to be, so I would agree with Mr. Stewart. Since, this car is dealing
really great with the microenvironmental factors and meets all customer needs, why not to make
it a ‘must’ in all vehicles. On the other hand it can impact part of the customers, that would like
to have a chance to choose Toyota without hybrid option.