Problem Solving

Toyota Prius

The Toyota Prius is an example of successful product design that effectively integrates stakeholder considerations. Toyota, the world is most profitable and second-largest automobile manufacturer(Levitt, 1960, pp.67), has its sights set on a global growth strategy driven in part by superior environmental and social performance. Well known and admired for its production system, Toyota also has a remarkable vision of the future of the automobile(Reinhardt , Yao , Egawa , 2006, pp.9). By some measures Toyota is environmental performance has worsened in recent years. For example, its sales of gas-guzzling SUVs (sports utility vehicles) have risen as a percentage of its total vehicle sales. Carbon emissions for its fleet grew by 72% in 2002 compared with 33% for the industry as a whole. Yet, according to Toyota insiders, selling more SUVs and trucks is a pragmatic response to a market opportunity in the short term that also provides a means to fund long-term growth(Reinhardt , Yao , Egawa , 2006, pp.9).

Part of its long-term growth strategy involves moving into environmentally responsible technologies: hybrids, hydrogen-powered internal combustion engines, and fuel cell vehicles. The Prius, its first foray into new clean technologies, has become a surprising success with more than 100,000 units sold in 2004(Reinhardt , Yao , Egawa , 2006, pp.9).

The Prius hybrid drivetrain increases gasoline mileage and reduces emissions. At the same time, it reduces operating costs for the owner (especially at today is gasoline prices), while sacrificing nothing in performance or styling. The car has also created a small but growing cadre of passionately supportive customers, and added an environmental and innovative cachet to the Toyota brand is aura of superior quality. If gasoline prices continue to rise, Toyota will have a real advantage in the market as it extends hybrid drivetrains to a broad range of vehicle types. If global climate change creates increased pressure for reduced use of fossil fuel, Toyota is advantage will increase further. And, in addition to creating a competitive advantage in hybrid technology (which Toyota is already licensing to other car-makers), the knowledge and experience Toyota has gained with the electric portion of the hybrid drivetrain positions it to be a leader in fuel cell electric vehicles as that technology matures(Reinhardt , Yao , Egawa , 2006, pp.9). 

Issues

Since Prius 2007 is a new product with new and enhanced features, therefore the current market awareness of this brand is low and not yet well known. However, the desired future of this brand, as marketers have been planned above in the single central key message section, is to have brand equity of "fuel economy". A successful campaign, therefore, should that Prius own the words "fuel economy" of every consumer is mind when they were (or they were not) considering cars in general.

The market research aimed to assist the launch of the Toyota Prius 2007 in several ways. First, the research data was used to examine the consumer grievances, dissatisfactions, and any other factors that make consumers dislike Prius. This was used to improve the future product and campaign. Second, the result of the pre-launch test was used to correct any potential mistake of the current campaign ...