Prius presentation

The Future of Hybrid Electric

VehiclesBy……

GOAL PROBLEM SOLUTION

To increase sale of Prius to 100% in one year.From 12,000 to 24,000 units.

1. People misperception on HEV.2. Mismatch of features

3. Prius’s design is not attractive.

GOAL

PROBLEM

GOAL PROBLEM SOLUTION

1. Educate customers and sale person about HEV.2. Create an incentive promotion and cooperate

with government to increase awareness of environment, pollution and fuel efficiency

3. Redesign Prius to SUV.

SOLUTION

To increase sale 100% in one year.GOAL

GOAL PROBLEM SOLUTION

GOAL PROBLEM SOLUTION

IIncrease sale could benefit Prius to reach breakeven point.

Prius is cost over $30,000 to produce however, the base sticker price is only $20,500

Prius is $4000-5000 more expensive than the gasoline vehicle.So why paying extra?

GOALDEFENSE

GOAL PROBLEM SOLUTION

PROBLEM 1

People misconception on HEV

GOAL PROBLEM SOLUTION

• They thought that Prius need to be plug in to charge every night and they wouldn’t want to buy a car that need to be charged every night.

• A lot of consumer concern about reliability. Additionally, from customer survey half of consumers select a car from reliability (52%). They thought that hybrid car is unreliable.

62% of consumers considered deal-ership

62%

PROBLEM DEFENSE 1

GOAL PROBLEM SOLUTION

• Create campaign to educate consumer about HEV.

• Provide comparison table of fuel usage between current models in the market.

SOLUTION 1

GOAL PROBLEM SOLUTION

SOLUTION DEFENSE 1

• Car is extended purchase; most of the information are external sources.

• According to the Gallup Organization, 62% of consumers say that visiting dealership is the most useful sources of information.

• Sales person is best sort of information.

• Prius’s strength is fuel-efficiency.

• 100% fuel-efficiency and 50% less pollution.

GOAL PROBLEM SOLUTION

PROBLEM 2

Gas mileage and pollution problem are under concerned.

GOAL PROBLEM SOLUTION

PROBLEM DEFENSE 2

• It’s difficult to increase sale if consumers do not see value of fuel-efficient and environmental friendly, which are the best part of Prius.

• Consumers do not see value of paying extra money as well.

GOAL PROBLEM SOLUTION

• Work with government to create campaign and advertising to inform that Prius is environmental friendly.

• Inform about rapidly increasing in US. Oil dependency.

• Provide an extra incentive.

• Create “trade-in” promotion.

SOLUTION 2

1950 2000

US. Oil dependency

52%

8%

GOAL PROBLEM SOLUTION

SOLUTION DEFENSE 2

• The campaign will encourage consumers to aware that buying Prius can help save environment and oil dependency.

• Prius is located in extended decision-making and is in Evoked set, therefore, acceptance strategy will attract and motivate consumers to learn about the car.

GOAL PROBLEM SOLUTION

PROBLEM 3

Prius’s desing is not match with what consumer wants. Most of people prefer SUV design.

GOAL PROBLEM SOLUTION

PROBLEM DEFENSE 3

• Appearance and style rank as second factor for consumers to purchase a car, accounted for 44%.

• In US. auto industry, SUVs contain the highest market share.

• Consumers state that sedan car do not have enough space for kids and family stuffs.

• Therefore if design and features are not matched with what consumers want, we would not be able to generate enough sales

GOAL PROBLEM SOLUTION

• Re-design Prius to be “SUV-looking” car.• Look as much SUV and as “green” as

possible

SOLUTION 3

GOAL PROBLEM SOLUTION

SOLUTION DEFENSE 3

• 42% of consumers state that it is very important for them to switch to more fuel-efficient vehicles.

• Between 1975 to 2001, SUV market increase from 2% to 22%.

Thank you