Toyota Prius: A Case in New Product Development

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Case Details:

Case Code : MKTG118
Case Length : 27 Pages
Period : 1997 - 2005
Pub Date : 2006
Teaching Note :Not Available
Organization : Toyota Motor Corporation
Industry : Automobile
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

The First Generation Prius

In 2000, Toyota introduced its first generation model of the Prius in the US, Europe and other markets. This model was also called Prius NHW11 or Prius Classic. A few modifications were made to the vehicle to meet vehicle standards for California, USA. Modifications were made to the engine by increasing the horsepower from 58 to 72...

Marketing the First Generation Prius in the US

For Toyota, marketing the first generation Prius in the US was a challenge. Commenting on the launch of Prius in the US market, Senior Vice President and General Manager of Toyota Motor Sales, Don Edmond (Edmond) said, “Frankly, it was one of the biggest crapshoots I've ever been involved in. Not because we lacked confidence in the quality of the product. Or the logic of the concept. Or the significance of this breakthrough technology. The key was to convince consumers in the U.S. that hybrid technology was more than a science project...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Second Generation Prius

Toyota began evaluating the popularity of its first generation Prius in the market soon after it was launched. The evaluation was based on the price, performance and social aspects of the product as seen by buyers and potential customers...

The Testing

The most important feature of the new Prius was its enhanced safety. The company had worked toward child safety and reducing the impact of collisions to a remarkable degree...


Toyota expected higher demand for the new Prius than the earlier versions. Edmond said, “We are targeting a sales volume of 36,000 for the first full year. That's three times our sales target for Prius (original) when it launched in the U.S.”...


Exhibit I: The Ultimate Eco Car Goal of Toyota
Exhibit II: Toyota -Financial Highlights
Exhibit III: A Brief on Hybrid Systems
Exhibit IV: Hybrid Power Train
Exhibit V: Comparison Between THS and THS II (HSD)
Exhibit VI: Comparison Between the Original, First Generation and the Second Generation Prius
Exhibit VII: Specifications Comparison
Exhibit VIII: Prius Sales in the US
Exhibit IX: Hybrid Cars from Toyota's Competitors
Exhibit X: Awards and Recognition

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