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HISTORY OF AUTOMOBILES 5
MASS PRODUCTION 8
HYBRID ELECTRIC VEHICLES 10
TOYOTA COMPANY PROFILE 13
GUIDING PRINCIPLES AT TOYOTA 13
FIVE MAIN PRINCIPLES OF TOYODA 14
TOYOTA GLOBAL VISION 14
HISTORY OF TOYOTA 14
COMPANY PROFILE 16
PRODUCTS AND SERVICES 17
SWOT ANALYSIS 17
STRENGTHS 17
WEAKNESSES 17
OPPORTUNITIES 18
THREATS 18
SITUATIONAL ANALYSIS 18
TOYOTA PRIUS C 19
PRIUS C FEATURES 20
BENEFITS OF HAVING A PRIUS C 21

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PRIUS TARGET MARKET 23
DEMOGRAPHICS 23
PSYCHOGRAPHIC 24
GEOGRAPHIC 24
NEED ANALYSIS 25
CUSTOMER SURVEY: 25
CAR DEALERS SURVEY: 28
RESULTS: 31
MARKETING STRATEGY 32
PRODUCTION FACILITY: 32
DISTRIBUTION: 32
POSITIONING: 32
MARKETING COMMUNICATIONS PLAN 32
CREATIVE STRATEGY: 34
COMMUNICATIONS MIX 34
PRE-TESTING: 36
MEDIA STRATEGY: 37
TIMING AND BUDGETS: 38
POST CAMPAIGN TESTING: 39


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Acknowledgement
The list is an endless one, if we take into account all those,
whose fervent energies and zealous dedication enabled our
humble mind and feeble fingers to learn, to think, to write
and to read. We want to have this opportunity to thank all
those who have had proved to be source of learning,
inspiration and wisdom for us. Ranks highest above them
are our Parents and Teachers









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Dedication
We dedicate this report to our Parents and teachers whose
support and guidance made us what we are today This
Report is dedicated to those students who are looking for
early victories in their professional life









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HISTORY OF AUTOMOBILES
Nicolas-Joseph Cugnot is widely credited with building the first self-
propelled mechanical vehicle or automobile in about 1769. Steam engines
powered cars by burning fuel that heated water in a boiler, creating steam that
expanded and pushed pistons that turned the crankshaft, which then turned
the wheels. During the early
history of self-propelled
vehicles - both road and
railroad vehicles were being
developed with steam engines.
(Cugnot also designed two
steam locomotives with
engines that never worked well.) Steam engines added so much weight to a
vehicle that they proved a poor design for road vehicles; however, steam
engines were very successfully used in locomotives. Historians, who accept
that early steam-powered road vehicles were automobiles, feel that Nicolas
Cugnot was the inventor of the first automobile. He also constructed two
steam tractors for the French Army, one of which is preserved in the French
National Conservatory of Arts and Crafts.
In 1771, Cugnot drove one of his road vehicles into a stone wall, making
Cugnot the first person to get into a motor vehicle accident. This was the
beginning of bad luck for the inventor. After one of Cugnot's patrons died and
the other was exiled, the money for Cugnot's road vehicle experiments ended.
In 1807 Nicphore Nipce and his brother Claude probably created the
world's first internal combustion engine which they called a Pyrolophore,
but they chose to install it in a boat on the river Saone in France.[15]
Coincidentally, in 1807 the Swiss inventor Franois Isaac de Rivaz designed
his own 'de Rivaz internal combustion engine' and used it to develop the
world's first vehicle, to be powered by such an engine. The Nipces'
Pyrolophore was fuelled by a mixture of Lycopodium powder (dried
Lycopodium moss), finely crushed coal dust and resin that were mixed with
oil, whereas de Rivaz used a mixture of hydrogen and oxygen.[15] Neither
design was very successful, as was the case with others, such as Samuel
Brown, Samuel Morey, and Etienne Lenoir with his hippomobile, who each

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produced vehicles (usually adapted carriages or carts) powered by clumsy
internal combustion engines.
In November 1881, French inventor Gustave Trouv demonstrated a working
three-wheeled automobile powered by electricity at the International
Exposition of Electricity, Paris.
Karl Benz generally is acknowledged as the inventor of the modern
automobile. An automobile powered by his own four-
stroke cycle gasoline engine was built in Mannheim,
Germany by Karl Benz in 1885, and granted a patent in
January of the following year under the auspices of his
major company, Benz & Cie., which was founded in 1883. It
was an integral design, without the adaptation of other
existing components, and included several new
technological elements to create a new concept. He began
to sell his production vehicles in 1888.
In 1879, Benz was granted a patent for his first engine, which had been
designed in 1878. Many of his other inventions made the use of the internal
combustion engine feasible for powering a vehicle.
His first Motorwagen was built in 1885, and he was awarded the patent for its
invention as of his application on January 29,
1886. Benz began promotion of the vehicle on
July 3, 1886, and about 25 Benz vehicles were
sold between 1888 and 1893, when his first four-
wheeler was introduced along with a model
intended for affordability.
In August 1888 Bertha Benz, the wife of Karl
Benz, undertook the first road trip by car, to
prove the road-worthiness of her husband's invention.
In 1896, Benz designed and patented the first internal-
combustion flat engine, called boxermotor. During the last
years of the nineteenth century, Benz was the largest
automobile company in the world with 572 units produced
in 1899 and, because of its size, Benz & Cie., became a joint-

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stock company.
Daimler and Maybach founded Daimler Motoren Gesellschaft (DMG) in
Cannstatt in 1890, and sold their first automobile in 1892 under the brand
name, Daimler. It was a horse-drawn stagecoach built by another
manufacturer that they retrofitted with an engine of their design. By 1895
about 30 vehicles had been built by Daimler and Maybach, either at the
Daimler works or in the Hotel Hermann, where they set up shop after
disputes with their backers. Benz, Maybach and the Daimler team seem to
have been unaware of each others' early work. They never worked together;
by the time of the merger of the two companies, Daimler and Maybach were
no longer part of DMG.
Daimler died in 1900 and later that year, Maybach designed an engine named
Daimler-Mercedes that was placed in a specially ordered model built to
specifications set by Emil Jellinek. This was a production of a small number of
vehicles for Jellinek to race and market in his country. Two years later, in
1902, a new model DMG automobile was produced and the model was named
Mercedes after the Maybach engine which generated 35 hp. Maybach quit
DMG shortly thereafter and opened a business of his own. Rights to the
Daimler brand name were sold to other manufacturers.
Karl Benz proposed co-operation between DMG and Benz & Cie. when
economic conditions began to deteriorate in Germany following the First
World War, but the directors of DMG refused to consider it initially.
Negotiations between the two companies resumed several years later when
these conditions worsened and, in 1924 they signed an Agreement of Mutual
Interest, valid until the year 2000. Both enterprises standardized design,
production, purchasing, and
sales and they advertised or
marketed their automobile
models jointly, although
keeping their respective
brands. On June 28, 1926, Benz
& Cie. and DMG finally
merged as the Daimler-Benz
company, baptizing all of its
automobiles Mercedes Benz,
as a brand h onoring the most important model of the DMG automobiles, the

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Maybach design later referred to as the 1902 Mercedes-35 hp, along with the
Benz name. Karl Benz remained a member of the board of directors of
Daimler-Benz until his death in 1929, and at times, his two sons participated
in the management of the company as well.
The first design for an American automobile with a gasoline internal
combustion engine was made in 1877 by George Selden of Rochester, New
York. Selden applied for a patent for an automobile in 1879, but the patent
application expired because the vehicle was never built. After a delay of
sixteen years and a series of attachments to his application, on November 5,
1895, Selden was granted a United States patent (U.S. Patent 549,160) for a
two-stroke automobile engine, which hindered, more than encouraged,
development of automobiles in the United States. His patent was challenged
by Henry Ford and others, and overturned in 1911.
In 1893, the first running, gasoline-powered American car was built and road-
tested by the Duryea brothers of Springfield, Massachusetts. The first public
run of the Duryea Motor Wagon took place on September 21, 1893, on Taylor
Street in Metro Center Springfield. To construct the Duryea Motor Wagon, the
brothers had purchased a used horse-drawn buggy for $70 and then installed
a 4 HP, single cylinder gasoline engine. The car had a friction transmission,
spray carburetor, and low tension ignition. It was road-tested again on
November 10, when the The Springfield Republican newspaper made the
announcement. This particular car was put into storage in 1894 and stayed
there until 1920 when it was rescued by Inglis M. Uppercu and presented to
the United States National Museum
MASS PRODUCTION
The large-scale, production-line manufacturing
of affordable automobiles was debuted by
Ransom Olds at his Oldsmobile factory in 1902
based on the assembly line techniques
pioneered by Marc Isambard Brunel at the
Portsmouth Block Mills, England in 1802. This
concept was greatly expanded by Henry Ford,
beginning in 1914.

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As a result, Ford's cars came off the line in fifteen
minute intervals, much faster than previous
methods, increasing productivity eightfold
(requiring 12.5 man-hours before, 1 hour 33
minutes after), while using less manpower. It was
so successful, paint became a bottleneck. Only
Japan black would dry fast enough, forcing the
company to drop the variety of colors available
before 1914, until fast-drying Duco lacquer was
developed in 1926. This is the source of Ford's
apocryphal remark, "any color as long as it's black". In 1914, an assembly line
worker could buy a Model T with four months' pay.
Ford's complex safety proceduresespecially assigning
each worker to a specific location instead of allowing
them to roam aboutdramatically reduced the rate of
injury. The combination of high wages and high
efficiency is called "Fordism," and was copied by most
major industries. The efficiency gains from the assembly
line also coincided with the economic rise of the United
States. The assembly line forced workers to work at a
certain pace with very repetitive motions which led to
more output per worker while other countries were
using less productive methods.
In the automotive industry, its success was dominating, and quickly spread
worldwide seeing the founding of Ford France and Ford Britain in 1911, Ford
Denmark 1923, Ford Germany 1925; in 1921, Citroen was the first native
European manufacturer to adopt the production method. Soon, companies
had to have assembly lines, or risk going broke; by 1930, 250 companies which
did not, had disappeared.
Development of automotive technology was rapid, due in part to the
hundreds of small manufacturers competing to gain the world's attention. Key
developments included electric ignition and the electric self-starter (both by
Charles Kettering, for the Cadillac Motor Company in 19101911),
independent suspension, and four-wheel brakes.

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Since the 1920s, nearly all cars have been mass-produced to meet market
needs, so marketing plans often have heavily influenced automobile design.
HYBRID ELECTRIC VEHICLES
A hybrid electric vehicle (HEV) is a type of hybrid vehicle and electric vehicle
which combines a conventional internal combustion engine (ICE) propulsion
system with an electric propulsion system.
Modern Hybrid Electric Vehicles (HEVs) make use of efficiency-improving
technologies such as regenerative braking, which converts the vehicle's kinetic
energy into electric energy to charge the battery, rather than wasting it as heat
energy as conventional brakes do. Some varieties of HEVs use their internal
combustion engine to generate electricity by spinning an electrical generator
(this combination is known as a motor-generator), to either recharge their
batteries or to directly power the electric drive motors. Many HEVs reduce
idle emissions by shutting down the ICE at idle and restarting it when
needed; this is known as a start-stop system. A hybrid-electric produces less
emissions from its ICE than a comparably-sized gasoline car, since an HEV's
gasoline engine is usually smaller than a comparably-sized pure gasoline-
burning vehicle (natural gas and propane fuels produce lower emissions) and
if not used to directly drive the car, can be geared to run at maximum
efficiency, further improving fuel economy.
Ferdinand Porsche in 1901
developed the Lohner-Porsche Mixte
Hybrid, the first gasoline-electric
hybrid automobile in the world. In
1900, while employed at Lohner
Coach Factory, Ferdinand Porsche
developed the Mixte, a 4WD series-
hybrid version of "System Lohner-
Porsche" electric carriage previously
appeared in 1900 Paris World Fair.
The Mixte included a pair of generators driven by 2.5-hp Daimler IC engines
to extend operating range and it could travel nearly 65 km on battery alone. It
was presented in the Paris Auto Show in 1901. The Mixte broke several
Austrian speed records, and also won the Exelberg Rally in 1901 with Porsche
himself driving. The Mixte used a gasoline engine powering a generator,

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which in turn powered electric hub motors, with a small battery pack for
reliability. It had a top speed of 50 km/h and a power of 5.22 kW during 20
minutes.
- George Fischer sold hybrid buses to England in 1901; Knight Neftal
produced a racing hybrid in 1902.
- In 1905, H. Piper filed a US patent application for a hybrid vehicle.
- A Canadian company produced a hybrid car for sale in 1915.
- The 1915 Dual Power, made by the Woods Motor Vehicle electric car
maker, had a four-cylinder ICE and an electric motor. The first gasoline-
electric hybrid car was released by the Woods Motor Vehicle Company
of Chicago in 1917. The hybrid was a commercial failure, proving to be
too slow for its price, and too difficult to service.
- The United States Army's 1928 Experimental Motorized Force tested a
gasoline-electric bus in a truck convoy.
- In 1931 Erich Gaichen invented and drove from Altenburg to Berlin a
1/2 horsepower electric car containing features later incorporated into
hybrid cars. Its maximum speed was 25 miles per hour (40 km/h), but it
was licensed by the Motor Transport Office, taxed by the German
Revenue Department and patented by the German Reichs-Patent Amt.
The car battery was re-charged by the motor when the car went
downhill. Additional power to charge the battery was provided by a
cylinder of compressed air which was re-charged by small air pumps
activated by vibrations of the chassis and the brakes and by igniting
oxyhydrogen gas.
- A more recent working prototype of the HEV was built by Victor
Wouk. Wouk installed a prototype hybrid drivetrain (with a 16
kilowatts (21 hp) electric motor) into a 1972 Buick Skylark provided by
GM for the 1970 Federal Clean Car Incentive Program, but the program
was stopped by the United States Environmental Protection Agency
(EPA) in 1976 while Eric Stork, the head of the EPA at the time, was
accused of a prejudicial cover-up. Wouk's work with HEVs in the 1960s
and 1970s earned him the title as the "Godfather of the Hybrid".

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- The regenerative braking system, the core design concept of most
production HEVs, was developed by electrical engineer David Arthurs
around 1978, using off-the shelf components and an Opel GT. His
vehicle exhibited 75 miles per US gallon (3.1 L/100 km; 90 mpg-imp)
fuel efficiency.
- In 1989, Audi produced its first iteration of the Audi Duo (the Audi C3
100 Avant Duo) experimental vehicle, a plug-in parallel hybrid based
on the Audi 100 Avant quattro. This car had a 9.4 kilowatts (12.8 PS;
12.6 bhp) Siemens electric motor which drove the rear road wheels. The
intent was to produce a vehicle which could operate on the engine in
the country, and electric mode in the city. Mode of operation could be
selected by the driver. But this car was very heavy.
- The Clinton administration initiated the Partnership for a New
Generation of Vehicles (PNGV) program on 29 September 1993, that
involved Chrysler, Ford, General Motors, USCAR, the DoE, and other
various governmental agencies to engineer the next efficient and clean
vehicle.
- The first mass-produced hybrid vehicle
was the Toyota Prius, launched in Japan in
1997, and followed by the Honda Insight,
launched in 1999 in the United States and
Japan.
- The 2003 Civic Hybrid appears identical to
the non-hybrid version, but delivers 50 miles per US gallon (4.7 L/100
km; 60 mpg-imp), a 40 percent increase compared to a conventional
Civic LX sedan.
- The redesigned 2004 Toyota Prius (second generation) improved
passenger room, cargo area, and power output, while increasing energy
efficiency and reducing emissions.
- In 2005, Toyota and Ford entered into a licensing agreement in March
2004 allowing Ford to use 20 patents from Toyota related to hybrid
technology, although Ford's engine was independently designed and
built.

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- Honda also released a hybrid version of the Accord but discontinued it
in 2007 citing disappointing sales.
- Commencing in the fall of 2007 General Motors began to market their
2008 Two-Mode Hybrid models of their GMT900 based Chevrolet
Tahoe and GMC Yukon SUVs, closely followed by the 2009 Cadillac
Escalade Hybrid.

TOYOTA COMPANY PROFILE
GUIDING PRINCIPLES AT TOYOTA
1. Honor the language and spirit of the law of every nation and undertake
open and fair business activities to be a good corporate citizen of the
world.
2. Respect the culture and customs of every nation and contribute to
economic and social development through corporate activities in their
respective communities.
3. Dedicate our business to providing clean and safe products and to
enhancing the quality of life everywhere through all of our activities.
4. Create and develop advanced technologies and provide outstanding
products and services that fulfill the needs of customers worldwide.
5. Foster a corporate culture that enhances both individual creativity and
the value of teamwork, while honoring mutual trust and respect
between labor and management.
6. Pursue growth through harmony with the global community via
innovative management.
7. Work with business partners in research and manufacture to achieve
stable, long-term growth and mutual benefits, while keeping ourselves
open to new partnerships.


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FIVE MAIN PRINCIPLES OF TOYODA
Always be faithful to your duties, thereby
contributing to the company and to the overall good.
Always be studious and creative, striving to stay
ahead of the times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere at
work that is warm and friendly.
Always have respect for spiritual matters, and
remember to be grateful at all times.
TOYOTA GLOBAL VISION
Toyota will lead the way to the future of mobility enriching lives around the
world with the safest and most responsible ways of moving people.
Through our commitment to quality, constant innovation and respect for the
planet, we aim to exceed expectations and be rewarded with a smile.
We will meet our challenging goals by engaging the talent and passion of
people, who believe there is always a better way
HISTORY OF TOYOTA
Look back at the history of Toyota, starting with the birth of founder Sakichi
Toyoda. It traces the company's development through 1937 from when Toyota
Motor Corporation was established to when the 2 millionth Prius hybrid was
sold.

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1867 Birth of Sakichi Toyoda.
1924 Sakichi Toyoda invents Toyoda Model G Automatic Loom.
1929 Automatic-loom patent is sold to a British company.
1930 Kiichiro Toyoda begins research on small gasoline-powered engine.
1933 Automobile Department is established at Toyoda Automatic Loom
Works, Ltd.
1935 The Toyoda precepts are compiled.
1936 The AA Sedan is completed.
1937 Toyota Motor Co., Ltd. is established.
1938 Honsha Plant begins production
1950 Company faces a financial crisis; Toyota Motor Sales Co., Ltd. is
established.
1951 Suggestion System begins.
1955 The Toyopet Crown, Toyopet Master and Crown Deluxe are
launched.
1957 The first prototypes of the Crown are exported to the United States;
Toyota Motor Sales U.S.A., Inc. is established.
1959 Motomachi Plant begins production.
1962 Joint Declaration of Labor and Management is signed.
1965 Toyota wins the Deming Application Prize for quality control.
1966 The Corolla is launched; business partnership with Hino Motors Ltd.
begins.
1967 Business partnership with Daihatsu Motor Co., Ltd. begins.
1974 Toyota Foundation is established.
1975 The prefabricated housing business begins.
1982 Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. are merged
into Toyota Motor Corporation.
1984 Joint venture with General Motors (New United Motor
Manufacturing, Inc.) begins production in the USA.
1988 Toyota Motor Manufacturing, USA, Inc. (present TMMK) begins
production.
1989 The Lexus brand is launched in the USA.
1992 Toyota Motor Manufacturing (United Kingdom) Ltd. begins
production.
1997 The Prius is launched as the world's first mass-produced hybrid car.
1999 Cumulative domestic production reaches 100 million vehicles.
2000 Sichuan Toyota Motor Co., Ltd. begins production in China.
2001 Toyota Motor Manufacturing France S.A.S. begins production in
France.
2002 Toyota enters Formula One World Championship; Tianjin Toyota
Motor Co., Ltd. begins production in China.

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2004 The Toyota Partner Robot is publicly unveiled.
2005 The Lexus brand is introduced in Japan.
2008 Worldwide Prius sales top 1 million mark.
2010 Worldwide Prius sales top 2 million mark; Toyota and Tesla Motors
agree on joint EV development.

COMPANY PROFILE
Company Name Toyota Motor Corporation
President & Representative Director Akio Toyoda
Date Founded Aug 28, 1937
Capital 397.05 billion Yen (as of March 31, 2011)
Main Business Activities Motor Vehicle Production and Sales
Number of Employees (Consolidated) 317,716 (as of March 31, 2011)

- Toyota is ranked 5
th
among the worlds largest corporations in the 2008
Fortune Global 500.
- Toyota is ranked 1
st
among the worlds largest automaker corporations
in the 2008 Fortune Global 500.
- Have 53 overseas manufacturing companies, in 27 countries/regions.

Toyota Pakistan
In Pakistan, Toyota has made operational alliance with Indus Motor
Company Ltd. Indus Motor Company (IMC) is a joint venture between the
House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho
Corporation Japan (TTC) for assembling, progressive manufacturing and
marketing of Toyota vehicles in Pakistan since July 01, 1990.
Indus Motor Companys vision statement is:
To be the most respected and successful enterprise delighting customers
with a wide range of products and solutions in the automobile industry with
the best people and best technology

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PRODUCTS AND SERVICES
Automobiles
Materials handling Equipment
Logistics
Textile Machinery

SWOT ANALYSIS
STRENGTHS
Toyota established as reliable, quality
vehicle that will hold value.
Strong gas mileage in a sensitive economy.
Early buyers report satisfaction.
Worlds third largest car manufacturer, biggest Japanese car
manufacturer
Reliable and High Quality Image
R&D, biggest spend amongst car manufacturers; innovative
Just In Time Production
Lexus brand and other strong brands.
Good dealerships and distribution network all over Pakistan.
WEAKNESSES
Price premium in a sensitive subcompact market.
Civic hybrid has already entered the Pakistani market.

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OPPORTUNITIES
Early buyers report that they have an image of Toyota as more
innovative and less conservative.
Opportunity to attract new Toyota customers by opening a new
segment.
Theme of youthful practicality.
Price and features attract first-time buyers.
Online activities, online buying.
Customization of features.
Increase in fuel prices and CNG prices provide an opportunity for
Toyota to introduce its Hybrids in the market.
THREATS
Strong competition from Honda, and Suzuki, Kia.
Because of electricity shortfall in Pakistan, it can be difficult to recharge
the vehicle.
Volatile electricity prices.
Public/Alternative transportation.
Lack of awareness about Hybrid technology in Pakistan.
SITUATIONAL ANALYSIS
The Toyota name is associated with strong, dependable qualities that have
gained the company a large and loyal consumer base. The release of the Prius
C adds an extra dimension to Toyotas identityone that is yet to be fully
recognized by its target consumers. As HEVs emerge on the market, it is
important to firmly establish the Prius C as a car in its own class, while also
securing it to the Toyota legacy.


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TOYOTA PRIUS C




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PRIUS C FEATURES
What: 2012 Toyota Prius c
When: Early 2012
How much: Toyota hasnt released pricing information, but reviewers expect
it wont cost more than $20k. (Rs. 20,00,000)
Known worldwide for its outstanding fuel economy ratings of 51/48 mpg
city/highway, the Toyota Prius is one of the most successful cars on the
market. So, naturally, it needed some siblings. One of the new additions to the
Prius lineup is the Toyota Prius c.
Having two engines, One Electric and other traditional Fuel engine,
makes Prius a more powerful vehicle than traditional car.
The PHV will offer electric-only driving and hybrid driving.
Prius c will be the most fuel-efficient car in the class of Hybrids, besting
the 2012 Honda Civic Hybrids combined fuel economy rating of 45
mpg. Prius C having ratings above 51/48 mpg city/highway, or 4.0
L/100km (city) and 4.2L/100km (Highway).
Produce 70% fewer smog-forming emissions than a typical
conventionally powered new vehicle.
More efficient electric power from a high rpm generator, a high
input/output performance battery and a high-voltage electrical system,
and
Better energy optimization management, torque-on-demand control
and regenerative-brake control.
A super-efficient, smooth-as-silk internal combustion engine and a
silent-running, high-output electric motor, that sound you barely hear is
your hybrid vehicle doing its thing.
Designed to automatically allocate power in the most efficient manner
possible, Toyota's Hybrid Synergy Drive quietly switches from gas
engine to electric motor and back without you even being aware of it.


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BENEFITS OF HAVING A PRIUS C
Lowered Emissions
For Toyota's hybrids, outstanding driving performance and increased fuel
savings just aren't enough. They also aim to be environmentally friendly and
clean vehicles with ultra-low emissions that meet and surpass the most
rigorous and demanding standards. With not only fewer emissions, but
cleaner as well. In fact, Hybrid Synergy Drive vehicles produce 70% fewer
smog-forming emissions than a typical conventionally powered new vehicle.
As well, Toyota hybrid vehicles don't allow the release of "evaporative
emissions," gas vapor that normally escapes from the tank and fuel lines into
the air. While some diesels may achieve high fuel efficiency, it is estimated
that even the best diesels produce more than 17 times the amount of smog-
forming emissions than do vehicles with the Hybrid Synergy Drive. No
wonder Toyota's hybrids are known far and wide as good friends of the earth.
Fuel Efficiency
Even if Toyota's hybrids offered no other benefits, fuel efficiency alone would
place them at the head of the pack. By seamlessly combining both gas and
electric power, the hybrid system can take full advantage of the synergies
between the two thus complementing each power source. In effect, Toyota's
hybrids offer the best of all possible worlds for economy and energy
efficiency. Other power trains fritter away energy at stoplights, during
braking and whenever the engine isn't running at optimum speed; the Hybrid
Synergy Drive actually stores that energy in the battery to be used when
needed. As well, superb aerodynamics and weight-saving features help
Toyota hybrids squeeze even more savings out of every liter of gas. No waste
while you make haste.
Driving Performance
They said it couldn't be done: a car that was fun to drive, energetic and full of
zip while boasting unsurpassed fuel efficiency at the same time. Perhaps that
might be true using a conventional approach where output and torque are
jacked up by increasing engine displacement, resulting in better performance
but lower fuel efficiency. But "they" didn't count on Toyota's Hybrid Synergy
Drive. Thanks to the hybrid system's power split device, which automatically
determines the right configuration of gas engine-electric motor power

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distribution, there no longer needs to be a trade-off between fuel efficiency
and power. And the latest version of the system features:
Increased drive power through a higher output motor
More efficient electric power from a high rpm generator, a high
input/output performance battery and a high-voltage electrical system,
and
Better energy optimization management, torque-on-demand control
and regenerative-brake control.
Bottom line: You get the best of both worlds in the form of outstanding
acceleration, a powerful and smooth response, and top fuel economy. More
power from less gas.
Quietness
Thanks to a super-efficient, smooth-as-silk internal combustion engine and a
silent-running, high-output electric motor, that sound you barely hear is your
hybrid vehicle doing its thing. Designed to automatically allocate power in the
most efficient manner possible, Toyota's Hybrid Synergy Drive quietly
switches from gas engine to electric motor and back without you even being
aware of it. Add Toyota's famed attention to detail, superior sound-proofing
through the use of damping coating behind the dashboard and floor,
vibration-reducing foam, and aerodynamic design to reduce wind noise--and
it's no wonder a ride in a Toyota hybrid feels more like gliding than driving.
Welcome to the sounds of silence.
Competitive Comparison
Where to start?
When it comes to clean, Toyota's hybrids rank above the rest, with the 2006
Prius rated at the top of the mid-size class designed to meet the stringent
California Air Resources Board (CARB) AT-PZEV or Advanced Technology
Partial Zero Emissions. While the Highlander Hybrid is first among mid-size
SUVs designed to meet the CARB SULEV or Super Ultra Low Emission
Vehicle rating.
Fuel Efficiency? Can't be beat. If you don't believe us, check out the Office of
Energy Efficiency's Fuel Consumption Guide. The 2007 Camry Hybrid is in a

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class of its own with a combined fuel consumption rate of 5.7L/100km both
city and highway while the 2006 Prius comes in at a minuscule 4.0 L/100km
(city) and 4.2L/100km (Hwy). As for the 2006 Highlander Hybrid, it scores 7.5
L/100km in the city and 8.1 L/100km on the highway. That ranks it higher
than some subcompacts!
Driving Performance? One word: powerful. It's no secret that Toyota's hybrids
deliver driving performance and power equivalent to vehicles with much
larger engine displacements. For example, the Prius, with its 1.5L engine,
boasts acceleration that compares to a 2.0L conventional gas-driven car. The
Highlander Hybrid, with a 3.3L V6, matches a V8 4L engine SUV or 5.0L
sedan in accelerating power. And the Camry Hybrid's 4-cylinder engine
outperforms many conventional vehicles equipped with V6 engines.
Put it all together-clean, efficient, powerful-and it's no contest. Toyota's
hybrids have only themselves to compete against, striving for even lower
emissions, more fuel savings, and enhanced performance with each new
generation of environmentally-friendly vehicles.
PRIUS TARGET MARKET







We have segmented our market on basis of:
DEMOGRAPHICS
The consumer is either male of female and between 30 and 50 years old (mid-
life). They are likely to be married (Full nest or Empty Nest) and with family
responsibilities. They are affluent and well-informed and educated adults,
classed in the AB socioeconomic segment. Therefore they are in higher

Page 24 of 39

managerial, administrative or professional occupations and of upper middle
class. Hence they are not only prepared to purchase environmentally-friendly
but also able to pay more for it (higher disposable income). They are either
their own property owner or rent privately. They are most likely to already
own a lower medium car or similar.
PSYCHOGRAPHIC
Within the demographic profile three main mindsets of probable buyers could
be identified
1. Early Adopters/ Technology pioneers
- Those who are interested in the latest technology/ innovation, and must be
the first on the block to own this technology and embrace it.
2. Environmentally Friendly
- Those who are recognizing the environmental impact of motoring and
would like to do something about it.
- Those only somewhat concerned and seeking to express their concern and
ease their conscience without causing themselves too much inconvenience.
The socially aware mainstream, but more hesitant to buy new technology.
3. Value Conscious
- Those who are looking for the ideal combination of high fuel economy and
low maintenance cost in long run at an affordable price.
GEOGRAPHIC
The target buyer is more likely to come from an urban area or a large city.






Page 25 of 39

NEED ANALYSIS
CUSTOMER SURVEY:
1. Do you feel that fuel emitted by cars is mainly responsible for
increasing pollution level?
a) Strongly Disagree.
b) Disagree.
c) Somewhat Agree.
d) Agree.
e) Strongly Agree.

2. Are you aware of the growing shortage of fuel/oil reserves?
a) Yes. b) No. c) Dont know.






3. Will you buy a car that emits less pollution (eco-friendly), as a
replacement of your current one?
a) Yes. b) No. c) Dont know.




0% 2%
22%
48%
28%

a
b
c
d
e
75%
15%
10%
Yes
No
Dont know
85%
10%
5%

Yes
No
Dont know

Page 26 of 39

4. Are you willing to pay a little more for that eco-friendly car?
a) Yes. b) No. c) Dont know.





5. Will you pay more for a car that consumes less fuel and gives better
mileage or has better driving economy?
a) Yes. b) No. c) Dont know.





6. Which attribute while selecting a car attracts you the most, or you think
is more important?
a) Design/Style.
b) Affordable Price.
c) Mileage.
d) Easy and Smooth Drive.
e) Innovative features.
f) Support Services.


75%
17%
8%
Yes
No
Dont know
25%
30%
2%
30%
10%
3%
a
b
c
d
e
f
82%
13%
5%
Yes
No
Dont know

Page 27 of 39

7. How much mileage do you want in a car?
a) 20- 30 km/liter
b) 30- 40 km/liter
c) 40-50 km/liter
d) 50 or above.


8. Do you feel that your current car is noisy and do not have smooth
drive?
a) Yes. b) No. c) Dont know.






9. Will you pay a little more for a car that is having stylish design and
innovative features?
a) Yes. b) No. c) Dont know.






20%
35%
17%
28%
a
b
c
d
25%
70%
5%
Yes
No
Dont know
77%
8%
15%
Yes
No
Dont know

Page 28 of 39

CAR DEALERS SURVEY:
1. Are your customer conscious about smoke emitted by their cars or they
demand cars that are eco-friendly?
a) Yes. b) No. c) Dont know.





2. Are your customers willing to pay more price for, good design and
innovative features?
a) Yes. b) No. c) Dont know.





3. Are your customers willing to pay more for a car that gives better
mileage, of approx more than 25 km/liter?
a) Yes. b) No. c) Dont know.





17%
50%
33%
Yes
No
Dont know
50% 50%
0%
Yes
No
Dont know
50%
33%
17%
Yes
No
Dont know

Page 29 of 39

4. How many customers out of 10 demand Green car or Eco-friendly car?
a) Yes. b) No. c) Dont know.





5. Which age group shows more awareness for or demands for green cars?
a) 20-25
b) 25-30
c) 30-35
d) 35+


6. Are your customers willing to pay more for a Hybrid car emitting less
pollution?
a) Yes. b) No. c) Dont know.







50%
33%
0%
17%
a
b
c
d
33%
0%
67%
Yes
No
Dont know
Yes
0%
No
100%
Dont know
0%

Page 30 of 39

7. Is your company planning to introduce Green Cars or Hybrid Cars?
a) Yes. b) No. c) Dont know.






8. Which attribute do your customers like most in a car, which attracts
them more?
a) Stylish design
b) Affordable price.
c) Better mileage.
d) Smoother drive.
e) Innovative features.
f) Good Support services.
9. Do your customers demand a car that less noisy?
a) Yes. b) No. c) Dont know.







0%
83%
17%
Yes
No
Dont know
a
16%
b
67%
c
0%
d
17%
e
0%
f
0%
Yes
100%
No
0%
Dont know
0%

Page 31 of 39

RESULTS:
From the above responses we can infer following results, which provides
useful guidance to develop our Marketing Strategy:
About 75% of our respondents feel that, cars are the major contributor
in Global warming; they emit heavy amounts of pollution. And about
85% of our respondents are willing to buy an Eco-friendly car, which
emits less pollution, and about 75% are also willing to pay a bit more for
such a car.
About 75% of our respondents acknowledged that they are aware of the
growing shortage of fuel; about 10% said that they dont know about it.
It is another positive sign for launching Toyota Prius C in Pakistan,
because people will prefer a car that gives better mileage.
Better mileage and less fuel consumption is one of the benefits of
having a Prius C, and about 82% are willing to bear extra cost for
having such a car.
Most of the dealers and customer responded that they want a Stylish
car with affordable price, having innovative features and Smooth drive.
And Toyota Prius C have all of demanded the features, but a Price is a
bit high, but most of the respondents have already agreed to bear extra
cost, for an Eco-Friendly car.
Most of our respondents want a car that gives a mileage of 25-40
km/liter, Toyota Prius C again fulfils the expectations as it gives
mileage of 4.0L/100km (city) and 4.2L/100km (Highway).
People between the age of 20-35 shows more awareness for Green cars
and a demand to have them.






Page 32 of 39

MARKETING STRATEGY
PRODUCTION FACILITY:
Toyota Motors has strategic Alliances with a local company Indus Motor
comp. Toyota manufactures cars locally in Pakistan with the help of Indus
Motor. Because Prius Cs technology is totally different than all of Toyota
other cars, so this car cannot be manufactured locally. A new manufacturing
facility has to be constructed for manufacturing the Prius locally. So Initially
cars will be imported from Japan on order.
DISTRIBUTION:
Toyota Prius will be available at all existing Toyota Showroom and
Dealerships. And these dealerships will also carry out repair and maintenance
activities.
POSITIONING:

Toyota Prius C incorporates features, mileage and design that no other car has
offered so far. It will be one of its kind in Pakistan. And its price is also a bit
higher than its comparable gas driven car models. So positioning strategy will
be More for More as it will provide More benefits for More cost.

MARKETING COMMUNICATIONS PLAN
The Prius was derived from a research project and its conversion to a mass
produced car might be more with the intend to improve Toyotas image, a
More
for
More

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kind of practical socially responsibility report, showcasing Toyotas
engineering capabilities at the same time.
Our Marketing Plan aims to achieve the following objectives:
Strengthening the relationship with the Toyota brand.
Increase the consideration of Toyota when planning a new car
purchase.
The target market should be reached as fully as possible.
Customer and Consumers have to be made aware of a new product and
its brand name.
Being a new product with a new technology, a prime objective is to
educate consumers and explain the working of the Prius and
advantages of this.
Target markets should be excited about the new Prius and spread
buzz/ word of mouth.
Communications should motivate consumers to find out more about
the Prius; visit the website, order brochures, visit a local dealer, order a
test drive.
The Prius should be considered as a full and valid alternative to
traditional cars.
Ultimately communications should lead to a purchase, a higher
percentage of showroom visits should be turned into sales.
As this product is new there are no historical data that would allow some
form of trend extrapolation to determine what is possible or what is realistic.
However the Prius has been launched in Japan and the USA, but these are two
different markets with a different environment and therefore only to some
degree of valid to be compared with the Pakistani market.
If all or some of these objectives will be met can only be determined by post
campaign research which should start during the campaign and be continued
in intervals to monitor the situation. Considering the performance of the Prius
in other markets sales of around 1500 units in the first year should be set a

Page 34 of 39

goal, 2000 in the second and 3000 in the third. With only two cars in the
hybrid market the Prius should become the market leader.
CREATIVE STRATEGY:
The Prius offer features that no other car offers. These unique selling points
should be emphasized in the promotions and any barriers to purchase are
weakened at the same time (unique selling proposition strategy). Promotions
messages are like to change over time, early promotion should concentrate on:
The awareness and education aspect,
Whereas later executions can focus on creating excitement and focus on
specific benefits.
To appeal to the target market promotions should promote the car and its
users to be innovative, imaginative, bold, intelligent, revolutionary and
pioneering. Identified barriers to purchase (high initial cost, unproven
technology, product ignorance) should be overcome by stressing the long run
efficiency, success in Japan and product information/explanation. It is
important to stress that the Prius does not need any external recharging
(confusion with traditional electric vehicles) and offers the same convenience
as a normal car, the Prius should therefore perceived as least brown and not
green (and all the disadvantages associated with that). The campaign is
intended to make the technology come alive

COMMUNICATIONS MIX
There are various communication methods. Two important factors have to be
considered when selecting the communication for the Prius:
1. The type of product (high involvement) and,
2. Its stage in the product life cycle (introduction).
These two factors influence the consumer/customer buying behavior and
therefore the mix has to be adjusted to fit these conditions.

Page 35 of 39

ublic relations are useful because they enjoy a high credibility at a low
cost, but the exact message cannot be controlled. This communication
form will be of major importance for the Prius campaign as many
buyers draw their information from the media. Being represented, talked
about in those will be an essential step in at least being considered as a choice.
ersonal selling is very important because a car is a high involvement
product and affords more conviction for purchase which is given by
PS. Personal selling will be carried out by the local dealers who in
advance should have been trained to be familiar with the Prius car (dealership
launch material, conferences) and its advantages and how to overcome
objections.
Personal selling will also be of major importance when targeting the
corporate/ fleet buying segment, because these customers buy in bulk they
expect to be given a presentation by a Toyotas representative to convince
them that Prius is suitable for their fleet.
ales promotion, monetary incentives to buy, is most effective to trigger
a decision or purchase. SP is useful at the beginning of the product life
cycle to increase acceptance or provoke a trial. Toyota sold Prius below
its cost, in introductory phases in US market; the plan again here is to sell
below cost in Pakistan. To get the biggest benefit out of this Toyota should
advertise this fact. Otherwise SP should be used spontaneously once a
slowdown in sales can be detected (PLC).
dvertising, a paid form of non-personal mass communication from
an identified sponsor, should be the major communication mix
ingredient for this campaign. Advertising is controllable, but
expensive esp. TV. Advertising can be used to increase awareness, create
interest and inform about Prius C. Customers or consumer are reached by
placing adverts in their target media.
irect mail in the form of newsletters can useful for this campaign to
create awareness (pre launch) and inform or offer of opportunity to
book a test drive. Toyota has already a database in place but can also
buy further data. Direct mail is also important when targeting the corporate
buyers and provides them with detailed information about the Prius. People
P
P
S
A
D

Page 36 of 39

who receive direct mail in error or those who are not interested in the offers
might feel annoyed and lower their image of Toyota.
PRE-TESTING:
Pre-testing is important esp. for a totally new product, to check if the message
sent is conceived as intended by the target market. Testing will help to
determine the optimum mix between imagery and copy and reduce the risk of
failure in general. Testing with test audiences who represent the general
public and the target audience should include concept, style and creative
strategy of all intended communications and executions. A share of the
budget has to be allocated for pre-testing.
irect mail should be one of the first activities with pre-launch
awareness letters being sent to existing Toyota customers; those in
segment C and above OR fit the target group description (above
segment C because 40% of buyers in USA & Japan previously owned a more
expensive car). Toyota can also buy additional databases from media that
their target has subscribed to (e.g. Daily Telegraph, as far as legally possible)
and then filter these for the target demographic profile.
A second wave of direct mail upon the launch with more discrete information
should follow and formally announce the launch of the Prius. On this occasion
the audience should be given the opportunity to either pre-order the car
(benefit of Toyota loyalty) or request a test drive at a local dealer. It will have
to be integrated/tuned with local dealers own mailing efforts. Direct mail
should also be sent to corporate buyers, which ought to be included in
Toyotas database. Their mailings should be customized to emphasize the
features that are important for fleet buyers. Direct mail should also be used in
a digital form (email) to underline the Prius contemporary image. Emails
could be designed to enable to directly pre-order the car and purchase the car
online, something that would appeal to the pioneer mindset.
ress releases and press conferences ought to create positive public
relations. These can be used for the launch and early stages of the Prius
to raise awareness and create interest for the new product just as
educate the public about the Prius working and advantages. Effectiveness
will be increased when PR appears in media consumed by the target market.
Considering the Prius revolutionary technology media will be prepared to
D
P

Page 37 of 39

talk about this product and even a certain amount of requested coverage
could be expected.
dvertising will be utilized as one of the most important
communication methods, along with PR. The use of TV, Print,
Internet and Outdoor seems most promising to reach and affect the
target market. The creative strategy will used to place advertising in target
media, with slightly different executions to meet each of the targeted mindsets
in their individual media. Advertising will go through different stages to
aware, educate and interest the target audience and then hopefully result in a
dealer visit.
MEDIA STRATEGY:
TV is a favorite medium because of its wide reach and its high impact that is
useful for showcasing a high impact product such as a car. The volume of TV
ads however is limited by its costs but popular target group programmers
(consult research) and times should be used as extensively as possible.
Identified TV stations: Geo New, Gen Entertainment, Express News, Hum TV,
Aag TV.
Print adverts will be placed in quality newspapers and esp. their weekend
supplements (back cover & second page). Additional ads are placed in car
industry magazines and those read by the target group.
Titles identified to read by the target audience: Dawn Newspaper, The Times
magazine, The Nationalist, Express, Khabrain, Jang.
PR activities will concentrate on target audience print publications but also
involve TV programs that deal with cars, the environment and may be even
radio programs. Press releases will be provided to car industry and target
group used media.
Outdoor billboards should be placed in urban areas to reach the broad
audience of car drivers at a low cost. Placing these at busy junctions will
complement TV and print advertising.
Internet plays an important role, direct mail will be sent as email where
possible and enable buyers to purchase the Prius online. A Prius specific
A

Page 38 of 39

micro-site will offer all information e-brochures for download. All adverts
should bear the Prius web address to make it easy for users to find.
Direct mail and sales promotion have been discussed above.
We will not use cinema because a low usage amongst our target has been
detected and the extra expenses are not likely to pay off. Directories are not
suitable for the image of the Prius. Regional press will not be considered
because traditionally these media are used by local dealers. Radio advertising
might be useful but we feel that radio will not be able to exert the necessary
impact to convince; the Prius should be visible to make sure the audience
understands that it is a modern and full car.
TIMING AND BUDGETS:
It is important to notice that marketing communications should start before
the product is actually launched, for launch activities to unfold their full
potential. Even long before that all departments that contribute to the product
and communication will have to meet regularly to tune into an integrated
strategy.
Pre-Launch: The setup of a micro-site round the Prius will happen once the
Prius has been shown on exhibitions. Direct mail will be sent before and after
the launch. PR will be provided scarcely before and fully after Launch.
Advertising and will set in once the product is available. TV adverts will start
in and flow into a awareness pattern after six months to maintain awareness
for a product that has a long purchase cycle and a long decision time.
Considering the small target group of the Prius and the small projected sales
figures a budget of 9million over three years seems appropriate, however we
would recommend reallocating the budget.
4m should be spent in the first year, 3m in the second and 2m in the third.
That way the launch period communications can be intensified. Three years
are also likely to correspond to the approximate life of this car model since car
manufacturer have increased their model output to keep demand high.



Page 39 of 39

POST CAMPAIGN TESTING:
Post-testing (during and after campaign) is important because it helps to
evaluate the actual success of the campaign (was the money worth spending,
were objective achieved) and feedback can also help when planning future
campaigns. Post-testing will be conducted by an agency that specializes in
conducting surveys to determine the publics reaction to the communications.
These tests should include the recognition/ awareness of adverts, recall rate
and how it has influenced peoples feelings/ attitude. Was the target group
reached and was the right message received? These results can then be
compared with results measured before the campaign launch to state the
impact the campaign had. Budget has to be allocated for this.