Marketing analysis of the 2005 Toyota Prius hybrid vehicle

Prius

Hybrid vehicles have grown in popularity in recent years. At the forefront of this revolution is a compact car called the Toyota Prius. The purpose of this discussion is to investigate the 2005 Toyota Prius within the car industry and analyze it from a marketing perspective. The ideas that will be covered in the discussion are: Marketing Mix Product- product line, quality, packaging, name, services; Price- temporary price reductions, discounts, trade deals; Distribution-type of outlets, availability; Promotion-advertising budget, promotional mix.

Marketing Mix

Product

The Toyota Prius came to market in 2000 and has been the top selling hybrid since this time. The 2004 model has been well received by consumers and the industry. According to an article found in Mother Earth News the Toyota Prius is a fuel-efficient car that won Motor Trend's Car of the Year for 2004. The author explains that the vehicle has swift acceleration (zero to 60 mph in 9.8 seconds), room for five passengers, numerous conveniences standard and impressive engineering that gives the hybrid a smooth performance barely distinguishable from traditional gas-engine vehicles. The Motor Trend editors say the 2004 Prius is the first hybrid that auto enthusiasts can enjoy: "It provides a tantalizing preview of a future where extreme fuel-efficiency, ultra-low emissions and stirring performance will happily coexist in one package."(Rockhold 2004)

The 2005 Toyota Prius also has the aforementioned qualities. However, it also has some added features. These features include a rear wiper (standard) and the smart entry system has been renamed. The vehicle is available in a range of colors including Black, driftwood pearl, millennium silver, salsa red pearl, super white, seaside pearl, and tideland pearl. (Overview 2005 Toyota Prius) it is a four-door vehicle with front wheel drive. (Overview 2005 Toyota Prius) the most appealing feature of this car is the fuel economy of 51 mpg (highway and 59 mpg (city). (Overview 2005 Toyota Prius)

Toyota is well-known for the quality of its vehicles and the Prius is no exception. Toyota, which also produces Lexus, is an industry leader and its vehicles are known for their reliability and slow depreciation.

This is one of the reasons why the car is difficult to get. Not only is it unique because it is a hybrid vehicle but it is also sought after because of Toyota's commitment to quality. A Washington Times article that was published when the Prius was first brought to market explains, "The Prius is in its first full year as part of the Toyota lineup, and customers have been lining up in droves, with some waiting six months for delivery. Buyers have included celebrities, environmental activists and plain citizens looking for those old-time virtues of cleanliness and economy." (Aukofer 2001)

The article also explains the aesthetic appeal of the car and the way it compares to other vehicles. The author asserts, "The first thing you notice about the Prius is the obvious high quality of the materials and construction. Although the upholstery is cloth, not leather, the instrument panel has a look of class that you never see on economy cars, and the overall ambiance is that of a far more expensive car like the Toyota Avalon or even a Lexus from Toyota's luxury division." (Aukofer 2001) This statement is proof positive that this is a high quality vehicle.

Price

The price of a 2005 Toyota Prius ranges from $19,995 to $20,875. (Aukofer 2001)

This price is considerably higher than the price of most compact vehicles. (Aukofer 2001)

However, because of the fuel efficiency of the car, and the benefit that the car provides for the environment, people are willing to pay this price.

Some dealerships do offer lower interest rates or cash back when purchasing the Prius hybrid. However, for the most part the price of the car is no haggle. In other words, the price of the vehicle is firm and there is very little or no negotiation concerning the price of the vehicle.

Another advantage of owning a Prius has been the tax deduction that owners of hybrid vehicles receive. According to the Internal Revenue Service (IRS) hybrid owners receive a $2,000 tax deduction. (2005 Toyota Prius Certified for Clean-Fuel Deduction) According to the IRS the Clean fuel deduction is designed to encourage people to purchase more fuel-efficient vehicles. (2005 Toyota Prius Certified for Clean-Fuel Deduction)

Promotion

There have been commercials for the Toyota Prius in the past and the vehicle is marketed much the same as other vehicles. The only exception is that the company boast about the fuel efficiency of the vehicle. Although the ads look similar to the ads of other vehicles, the ads for the Prius tend to air less often. Perhaps this is due to the already high demand for the vehicle and the number of vehicles that the company produces. In many cases, the commercials contain the entire product line and not just the Prius. Toyota has used a mixture of television and print advertisement to expose the public to the previous. The company has been successful at promoting the Prius in a very subtle manner. The exorbitant price of gas and world events has also brought the car to the forefront on news shows.

The purpose of this discussion was to investigate the 2005 Toyota Prius within the car industry and analyze it from a marketing perspective. We found that this is a hybrid vehicle that has grown in popularity over the last few years. Our investigation asserted that this vehicle has been successfully promoted and continues to be synonymous with the renowned quality that Toyota is known for.