new product innovation and its marketing strategy
DESCRIPTION
PRODUCT INNOVATIONTRANSCRIPT
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.