NEW PRODUCT INNOVATION AND ITS MARKETING STRATEGY

CARS

CONTENTS

WHAT IS HYBRID CAR BRIEF HISTORYWORKING & FUNCTIONINGTOYOTA PRIUS MARKETING STRATEGYSWOT ANALYSIS WHY PRIUS WAS NOT SUCCESSFUL IN INDIAUPCOMING HYBRID CARSNEED OF HYBRID VEHICLE IN INDIA

WHAT IS A HYBRID CAR?

A HYBRID CAR is a car that uses two or more distinct power sources to move the car.

HISTORY

• In 1901, FERDINAND PORCHE developed first gasoline-electric hybrid automobile in the world

• The hybrid-electric vehicle did not become widely available until the release of the

”Toyota Prius” in Japan in 1997.Came in U.S in 2000

The hybrid-electric vehicle did not become widely available until the release of the ”Toyota Prius” in Japan in 1997.Came in U.S in 2000.

Other than normal cars at the time of braking hybrids cars convert the excess kinetic energy into electricity which is stored into the battery

FUNCTIONING Hybrid cars have two motors, one is run by

diesel or gasoline and other one by electric motor. Both these motors function together to make the car run

When the car gets slow speed the charge (current) is supplied through the electric motor while the power is supplied by high speed gasoline motor.

TOYOTA PRIUS The Reason for Choosing the word : Prius is a Latin word

meaning "before". According to Toyota, the name was chosen because the Prius was launched before environmental awareness became a mainstream social issue.

Prius :First mass-produced hybrid vehicle in Japan in 1997 and was subsequently introduced worldwide in 2000.

The Prius is sold in almost 80 countries and regions, with its largest markets being those of Japan and the United States

World’s best selling Hybrid car.

MARKETING STRATEGY

WHY PRIUS IS SUCCESSFUL? Prius is the “first mass produced hybrid” therefore

the market for this kind of car is very new and competition very light. The Honda Insight(1997) is the only other hybrid car that is currently on the market but not offering the same convenience. The Insight is designed as a two-seat sports car

The Prius aims to provide the same comfort that any other segment car(Petrol and Diesel) provides

STRENGTHS

LOWER EMISSIONS

BETTER MILEAGE

REDUCE DEPENDENCE ON FOSSIL FUELS

BETTER FOR ENVIRONMENT

WEAKNESS HIGH COST

RISKY IN ACCIDENTS BATTERIES ARE NOT RE-USABLE

DISPOSAL OF BATTERIES

AVALIABILTY OF SERVICES

OPPORTUNITIESCan gain from first movers advantage in hybrid

segment.

Acquiring collaborations with automobile

business entities.Augment distribution and servicing network

THREATS

Higher maintenance costs may defer the customer

Competition offering innovative features at lower price

New entrants in the same segment with better features and lower price

WHY TOYOTA PRIUS WAS NOT SUCCESSFUL IN INDIA?

They did not launch the vehicle well, Marketing was not done. They Lacked marketing Strategies.

They Targeted High Income Group.

Price of the vehicle was VERY HIGH.

UPCOMING HYBRID CARS IN INDIA

Tata is planning to launch Hybrid Version of Tata NANO.

Toyota is Coming with Toyota Etios Hybrid.

Maruti Suzuki: Maruti Swift Hybrid Version

WHY HYBRID VEHICLE IN INDIA? National Electric Mobility Mission Plan 2020

It is a detailed plan based on an in-depth primary data study conducted jointly by government, automotive industry and academia/research institutes. The NEMMP is vital for reducing our dependence on fossil fuels,

80% of which is imported leading to massive foreign exchange deficit TargetTo put 6-7 million EVs on road by 2020; 4-5 million are expected to

be two-wheelers.Reduce dependence on fossil fuels.To promote cleaner technologies.