Hello everyone, Our last post on the topic seemed to bring a lot of heated debate, so we couldn't help but come back for more! We have some new information about the US results overall that we wanted to share with you. Marketing Some of you rightly wondered whether the TV ads were as effective at communicating the Prius as they were at being liked. Here's the summary: The first two spots to air ("Harmony" and "MPG") have been performing at or above Memorability norms; the 3rd spot ("Solar Roof") was performing slightly below norms in June, but has had the least amount of weight. All three spots are above norms for Brand Communication ("What's the ad for?") and Appeal ("Did you like the ad?"). All in all, not outstanding results, but quite good respective to typical automotive ads. Customer This is where it gets good. We talked about PIRQ scores last time - and that people with scores 80-90 was our new target. We think we're definitely getting them. In fact, we're getting a lot of buyers under 80 as well. Average buyer age and average household income are down significantly from the 09MY Prius, indicating a more "mainstream" buyer. We also have data showing the psychographic profile of the new buyer is also much more mainstream as well. They answer questions like "I always buy greener products even if they cost more" much less positively than in the past. And finally, cross-shopping data is quite interesting; this is expressed as the percent of people that looked at any other model at all. Normally, Prius buyers have a low cross-shop rate, meaning they are shopping for a Prius and nothing else (historically, only 35%) - it's an indication they have high PIRQ scores in general. But the new one is now at a 68% cross-shop rate. That's a huge change! Yes, some of that change is due to the Insight, but not all of it. The new buyer simply is shopping Prius vs. other a lot of other models. Sales The proof is in the pudding. If we haven't already, we will release July sales results today. Needless to say, we are thrilled with this past month's results. Sure, there was an "artificial" boost due to the government CARS program. But Prius had been exceeding our expectations even before CARS began. We're really happy. Would love to hear your thoughts! Doug Coleman Prius Product Manager Toyota Motor Sales, USA
I think you can chalk the 68% cross-shop rate on the 2010 Prius to a couple reasons... 1. More hybrids in the market means more options for buyers to compare products (not just new cars, used as well). 2. More people are "shopping around" for deals in this economy. I'm sure you've spent millions of dollars to explain the 68% cross-shop rate...mine is free of charge.
Thanks for the insight Doug. As a dealer, I can say, with about a 90% certainty, that cash for clunkers had nothing to do with sales. We have over 80 C4C deals, and not a single one was on a prius. Our prius sales are almost exclusively done before they hit the ground. If anything, we turned down a few C4C sales due to the fact that the money would be long gone before the car came in. Happily, every one of our customers still placed the order. That is a true testament to the demand of the new prius.
For the 2004-2009 Prius, my household's average PIRQ (as you defined it) is 65. Prius initially appealed to us because of the hybrid system, but the Gen II did not attract much beyond that. The 2010 captured us by the long list of features and improvements (particularly exterior and interior design) and a great value among its peers in that price point. Ad placement has been good with a mix of sporting events (such as Formula 1) as well as specialty channels like High Definition programming and local channels. My main comment to you Doug, is that you did an awesome job turning a household of "car people" into a 2010 Prius family. I've been showing my car-buddies (read low PIRQ) the Prius speaks for itself. Prius is a great combination of features, technology and value.
I don't know that I would equate the lack of a C4C trade-in with no causal connection between the program and the sale. FYI: I am just a consumer, not a dealer, and I did do a C4C tradein and also used the WA state salestax exemption for hybrids. The reason I say that there may be connection even in the absence of an actual trade-in was my own experience. When the program was announced, I knew I was nearing the end-of-life of both of the cars in my fleet, one of which was a 1996 4Runner with 200k miles. The government incentives got me looking, and I had owned a Gen I prius back in the first model year. We liked the car, so we looked at new Prius. I hadn't checked in on the Prius developments in a long time, and this spurred me into thinking about it again. It was definitely the C4C and sales tax exemption that got us shopping when it was first announced, but we would have purchased even if we missed that window or decided those programs weren't for us. In the end, we decided to C4C tradein, but I bet at least some people were kicked into the decision-making process by the program but end up buying a prius without a C4C trade in. While those weren't C4C deals, you can't necessarily say that the sales were independant of the program. Just my perspective as a buyer and from talking to others who are also looking... (Ok, back to lurking now)
Congratulations Doug on your success and and on a great car! In my experience, friends whose notions of a Prius as a small, slow car that would only appeal to ex-hippies have turned around since seeing my 2010. While it's nice to be unique, I'd love to see everyone on my block driving one! Think how quiet it would be around here!
Thanks for the insight Doug and congrats on a successful campaign. I think almost everyone here would agree that a successful hybrid initiative is a win-win for everyone. And as always, thanks for the confidence in sharing your data with us.
The 2010 Prius looks to be an excellent vehicle and you should be congratulated. Ours\ Perl White 5 with the ATP comes next week. Having only had minivans since 86 geting customers like us to switch to a Prius reflects positively on the marketing. The daily radio technology ads in the Boston area eventually got our attention. I must admit though I was a little surprised to learn that the floor mats were a different color than the interior. Its the little things that matter and hopefully little glitches like this can be corrected in the future. Stan Ames soon to be Prius owner
Thanks Stan. The quotes on those radios spots are actually from me, too Doug Coleman Prius Product Manager Toyota Motor Sales, USA
Looking good, Doug! Thanks for sharing! I suppose the larger cross-shopping percentage is due to the mainstream buyers wanting to be open to options and the fact that there are now more choices on the market. Love your avatar!
Congratulations, Doug! Apparently it all worked, some of our misgivings notwithstanding, or at least you did no harm! No amount of marketing will help a lousy product though (at least in the long run), so one always wonders how much credit the marketing guys should take! I guess you must be more in tune with your market than I am, since my wife and secretary both like the commercials. Of course, I had to send my secretary the youtube links, since all she ever watches are movies and Fox news! You suppose if you buy radio spots on Rush Limbaugh that he'll stop bashing the Prius? (but seriously, please don't!)
well sales are out and the 2010 kicked butt on the 2009 for July and considering that gas was north of $4 a gallon last July and the Pri was ultra-popular, that makes this July's sales all the more meaningful...iow, last July was excellent so to beat those numbers is actually quite an achievement.
I do think Toyota needs to look at their distrbution and sales network. The dealer culture seems to vary from region to region. Apparantly terrible in the southeast, mediocre here in the Rocky Mountain area, much more customer friendly on the west coast. The Prius is unique and far ahead of anything else on the market. So, we are putting up with a lot of frustration to get one. That may not always be the case. I am buying out of region, in Portland, Oregon to get the configuration that I want. I then found the buying experience there to be much better than here in Colorado.
I guess I must be in the minority. I think the commercials are silly at best and cater to the far left side of average, but of course i got mine because of the C4C, so that means I;m not the norm. I've wanted a Prius for a year now because I'm impressed with the technology, but just couldn't make the "numbers" work. C4C made the numbers work as I had a car stored in a hangar that was perfect for C4C, a 93 Z28 Camaro and the local dealer had an unsold Prius on the lot. I drove the Insight, and believe one day Honda will be a competator, but not today. I for one would much rather see commercials touting the technical superiority as opposed to cute little singing flowers and happy, happy, joy, joy music.
I for one, love my Prius, and considered a 2010, but two things changed my mind, having to deal with a Toyota dealer again, of the 6 dealers I dealt with in purchasing my Prius, not one was customer friendly, it was by far the worst experience of my many years of buying new vehicles. And second, even though there were a lot of improvements, there was also a few changes such as lower screen resolution, and left out options that lowered my resolve to go through the horrible dealership experience again. Why were HUD and the other options left out?
I cross shopped looking at the FFH an the Cadillac CTS (seriously). I love the Prius. Previously drove a TCH and currently also have a HH. personally I think the ads are "cute". However "cute" does very little in keeping my non-hybrid friends from making jokes about my car. I am used to them admiring my cars and this one is worth of admiration, but the advertisements don't reach them.
I absolutely love dealing with Buckhannon Toyota (in WV) and Kip. Have bought several cars from him. It's a shame all Toyota dealers don't have the same appreciation for their customers.
I didn't get the government welfare assistance and still bought one, despite the silly advertisements (which just came on TV while I write)
I've gotten at least 2 or 3 surveys (via email) since getting my 2010 Prius. But I can't remember exactly how I answered some of the questions...for example I did go test drive an Insight while I was waiting for my 2010 to arrive. But I wasn't really going to get one...I just wanted to know more about how it compared. When I got my 2001 Prius I think I got about 5 or 6 surveys within the first year. But I was more "sold" on getting the 2010 than back then. For what it is worth... I don't really like the new commercials -- trying to be too cute, IMO. But if you haven't heard of the Prius you probably aren't a car buyer and maybe the commercials succeed in that they let everyone know (and remember) that there is a "new" Prius. But I would think that if you really want to get to buyers with a lower PIRQ score you would stop with the "cute" commercials (if you haven't seen it yet you don't what much TV or you use Tivo and skip all the commercials) and try some that focus on the technology a bit for those that don't go for "cute." 3PriusMike (One of each generation, all the first month of release)
