Hybrid Marketers Might Take A Lesson From Toyota

ray0825 · Aug 3, 2007

<div class='quotetop'>QUOTE(burritos @ Aug 3 2007, 01:02 PM) [snapback]489997[/snapback]</div>

That's funny. Maybe people buy priuses to show that they have a big brain(when they really have a little one) like people who buy corvettes/trucks/suvs to show that they have a big penis(when they really have a little one).
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Obviously the irony was lost on you.

Tideland Prius · Aug 3, 2007

When I bought my Prius, hybrids were simply another option.. just like diesel cars. People didn't really care if it existed. Heck, I only had one guy (looked more like a teenager) ask me about the Prius. When we bought our 2002 Camry in 2001, we had a LOT more people come up to ask about our Camry..... Go figure lol.

We bought it cause it used half as much fuel as our Camry (and goes nearly twice as far) and cause it has the cool toys like SKS (nav/BT was a little expensive in Canada)

JimN · Aug 3, 2007

<div class='quotetop'>QUOTE(Somechic @ Aug 3 2007, 09:55 AM) [snapback]489902[/snapback]</div>

Hybrid Marketers Might Take A Lesson From Toyota
by Karl Greenberg, Friday, Aug 3, 2007 5:00 AM ET

AUTOMAKERS, BOWING SEVEN NEW HYBRID vehicles this year, might want to think of ways to make gas/electric cars and trucks scream: "Hey, look, I'm a hybrid." A big visible difference from non-hybrids, big fuel economy gains and a small price difference have determined winners and losers in the growing segment, say market observers.

High gasoline prices, meanwhile, are helping drive a record market in gas/electric cars this year. Still, with a profusion of hybrid cars in market now and more coming, Toyota's Prius rules, and consultancies say the car will continue to do so: Toyota sold a record 16,062 Priuses last month--a dizzying 50% increase versus the month last year. Year to date, the company saw an 85% increase through July versus the period in 2006. Toyota reported that among all of its hybrids, it saw a 59% increase in sales in the period.

Toyota, which plans to offer hybrid-powertrain versions of its entire portfolio by 2012, now sells gas/electric versions of four other vehicles, but all of those combined don't come near sales of Prius.

"Prius is a stand-alone car--it makes a statement on its own," says George Magliano, director of automotive research for the Americas at Global Insight, Lexington, Mass. "You see it on the road and know it's a hybrid. And the issue with this type of vehicle is that people want you to know they have a hybrid."

Dan Gorrell, president of Auto Stratagem, a research and consulting firm in Tustin, Calif., concurs. "Consider the hybrid Highlander (SUV). It hasn't sold well, partly because it violates a major issue: you need to look different. A lot of why people are buying hybrids has to do with being noticed; it's a self-esteem issue."

Gorrell says the efforts are driven in no small part by publicity and automakers' desire to position themselves as progressive. "There's been a lot of me-too's. Press has put pressures on manufacturers, and it's gotten into the image arena because if one isn't offering a hybrid then one is an evil gas guzzler. Toyota has played the hybrid card in an interesting way to promote its corporate image."

Toyota has been moving hybrid metal by offering incentives earlier this year--to offset the government's rescinding of the federal consumer tax break on hybrid purchases--on a car that used to have a six-month waiting list. Although there are now 11 hybrid models for sale in the U.S. market, Prius still accounts for over 50% of all new hybrid vehicles bought in the U.S. According to J.D. Power & Associates, it will continue to dominate.

The firm also sees hybrids achieving record sales this year, with a 35% increase in sales of such vehicles versus 2006. In the U.S., automakers have sold about 187,000 such vehicles through June of this year, and the firm says the industry is on track to reach 345,000 unit-sales this year on a strong first half.

Among current hybrid-version models sold in the U.S.: Toyota's Camry, Highlander, Prius and Lexus GS car and RX SUV; Ford's Escape and Mercury Mariner; GM's Saturn Vue and Aura; Honda's Civic and (for now) Accord; and Nissan's Altima hybrid. The latter uses Toyota technology, but Nissan hasn't marketed the vehicle and has only sold 2,800 units this year.

On the domestic side, Ford has sold over 11,000 units of its Escape hybrid in the first half of this year.

Indeed, not all hybrids are selling well. Honda has seen a modest 6% increase in sales of its hybrid-version Civic this year--but is discontinuing the hybrid version of the Accord sedan, of which it has only sold 2,304 this year, as it sells down inventory.

"The hybrid Accord was the wrong price and the wrong concept," says Gorrell, who says Honda's mistake was marketing the car for performance. "People buy hybrids for fuel economy, and they clearly weren't getting that with the hybrid Accord."

General Motors' Saturn division has hybrids under the Green Line sub-brand of the Vue crossover and Aura sedan. The latter is touted as the lowest-priced hybrid on the market. "I think that GM is doing well with lesser technology partly because the vehicles aren't priced at a premium either, so it's a step in the right direction," he says.

Mike Omotoso, senior manager, Global Powertrain at J.D. Power, says GM's price premium is between $1,000 and $1,500. GM has sold less than 1,000 of its Aura hybrids since it went on sale in April.

Omotoso says Prius has done so well because it fires on all cylinders with a unique look and a pure hybrid powertrain (versus hybrid-assist versions) and market adjustments offering lower-priced versions. "You can see from a hundred yards away, it is the only one of the group that can run completely on electric, and it has the best fuel economy out of all of them. Honda sells 300,000 Civics per year, and the hybrid portion is 10% of that--and from a distance it looks like a Civic," he says.

According to J.D. Power, people are willing to pay a price premium of $2,400 for a hybrid. "One of the reasons the Accord hybrid failed is that it carried a $3,700 premium," he says, adding that it would take ten years to recoup that cost if one were saving $350 per year in gas costs using the car.

He says the Camry hybrid is the second-highest-selling hybrid car, followed by the Civic hybrid. Among hybrid-powered SUVs, the Toyota Highlander is the top seller, says Omotoso. "Toyota has credibility. They have done a great job of marketing themselves as hybrid leaders, and the Highlander--the non-hybrid version--is already a high-selling truck."

J.D. Power says the industry will get an infusion of 65 hybrid models--28 cars and 37 light trucks--by 2010, with sales expected to reach nearly 775,000 units, or 4.6% of the total U.S. new light-vehicle market. Both Toyota and GM are testing plug-in hybrids.

Among the seven new hybrids coming into the market are hybrid versions of Ford Fusion and Mercury Milan sedan; Chevy Malibu; Hyundai Santa Fe; and Toyota Sienna minivan. General Motors will also offer full hybrids on its Yukon, Escalade and Tahoe trucks. Lexus is the first to launch an ultra-premium hybrid with the $104,000 LS 600h, on sale this summer.

Gorrell says the winners in the hybrid wars will be the ones offering the whole package. "The key will be--do they look different, how are they priced and do they offer that much of an advantage? It had better offer gasoline advantages and look different. That's what's required."

Karl Greenberg can be reached at [email protected]

http://publications.mediapost.com/index.cf...22&p=436482
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The auto industry's problem is that they listen to consultants instead of customers and let marketers instead of engineers design cars. The Prius sells because it promises reliability and delivers utility and 50 mpg. The other hybrids don't deliver the economy so they don't sell. Big surprise.

hill · Aug 3, 2007

My Car looks like an egg on wheels ! ! ! Weeee ! ! ! ! Look at meeeee ! ! ! !
:lol:
What a tool. What'd he do, take a pole of one? Yes, it's not the economy and efficiency and tech features etc, we all just bought for ego (shaking head). Yea, in reality I'm a closet 4x4 Suburban owner & he's got me dead to rights.

zenMachine · Aug 3, 2007

...Among the seven new hybrids coming into the market are hybrid versions of Ford Fusion and Mercury Milan sedan; Chevy Malibu; Hyundai Santa Fe; and Toyota Sienna minivan...[/b]
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!!! For real???

jbarnhart · Aug 4, 2007

Note to marketeers, pundits, analysts and other industry "experts" -- It's the MILAGE, stupid!

Notice how the lower selling hybrids are also those "tuned" for performance instead of economy??

Godiva · Aug 4, 2007

<div class='quotetop'>QUOTE(JimN @ Aug 3 2007, 09:32 PM) [snapback]490301[/snapback]</div>

The auto industry's problem is that they listen to consultants instead of customers and let marketers instead of engineers design cars.
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Actually, the Prius was designed by engineers. I went to a lecture by one of the Toyota Prius design team. He said the engineers came up with the basic shape. They were to design a car but had to conform to the shape the engineers specified. He showed us a number of versions all based on the Prius shape.

tballx · Aug 4, 2007

I was about ready to rant about the amateur psychologist/marketers that are eminently qualified to judge what is and is not a "self-esteem" issue but I see that everyone has taken care of that for me. It's nice to be in agreement sometimes. I even grasped the irony in Rayj's comment. B)

Topgas · Aug 4, 2007

It's amazing to me how off marketing people can be. These people are in denial. There's a whole new reality coming and knowone wants to admit it in Detroit. Mileage and dependabilty, the only answer for the American mfg's are diesels. There's no way the American mfg's can get a car to market that is as complex as the Prius without the wheels falling off of them. Ford can't even get their diesel right on their 6.0 truck and they've been on the market for four years. GM's done very well with diesels.

pyccku · Aug 4, 2007

The auto industry's problem is that they listen to consultants instead of customers and let marketers instead of engineers design cars. The Prius sells because it promises reliability and delivers utility and 50 mpg. The other hybrids don't deliver the economy so they don't sell. Big surprise.[/b]
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Bingo! Why can't they actually ask a bunch of Prius owners, rather than just having the consultants theorize?

I didn't buy my Prius because of the way it looks. I don't MIND the way it looks, but I also really don't care too much.

I wanted reliability, good gas mileage, enough storage space to haul photography equipment when necessary, and enough power to get me, my husband and three kids to work and back each day without looking like the pokey little puppy. The Prius had it, so we bought it.

Never once did we stand back and say "let's buy this care because it will make a statement about us!"

9G-man · Aug 4, 2007

<div class='quotetop'>QUOTE(rayj @ Aug 3 2007, 11:34 AM) [snapback]489935[/snapback]</div>

I am so sick of reading article after article from industry 'experts' pontificating about why people buy a Prius. They ALL point out it must be because Prius 'looks different'. Prius owners all want to be smug and rub everyones nose in our intelligence. While there may be people out there like that, I think they are missing the real issue.

I wanted a 4-5 passenger car that got great mileage. (I drive a lot) There is nothing else out there even close. The reason for this is Toyota pulled out all the stops to engineer a car to do just that (with low emissions - which is nice too). And yes, it looks different because low drag was PART of this.

All the pundits who point to other cars whose bodies are unchanged and have hybrid drive trains and DONT sell have missed the basic fact that they dont get that much better gas mileage either. Why bother?
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EXACTLY, 'look at me' has little-to-nothing to do with it. It all boils down to which has the most to offer....

...Among the seven new hybrids coming into the market are hybrid versions of Ford Fusion and Mercury Milan sedan; Chevy Malibu; Hyundai Santa Fe; and Toyota Sienna minivan...

<div class='quotetop'>QUOTE(zenMachine @ Aug 3 2007, 11:46 PM) [snapback]490350[/snapback]
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!!! For real???[/b]
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Yeah, baby! Soon as it hits the lot, My '02 (Sienna) gets the kiss goodbye!

usbseawolf2000 · Aug 4, 2007

Oh, I put the Prius decal on because I am proud to own a technologically advanced car.... I actually think the side decals make the car look lower and better.

You see the same things in Honda owners. You'll see V-TEC and Honda decal all over their.

box · Aug 4, 2007

<div class='quotetop'>QUOTE(Somechic @ Aug 3 2007, 08:55 AM) [snapback]489902[/snapback]</div>

Dan Gorrell, president of Auto Stratagem, a research and consulting firm in Tustin, Calif., concurs. "Consider the hybrid Highlander (SUV). It hasn't sold well, partly because it violates a major issue: you need to look different. A lot of why people are buying hybrids has to do with being noticed; it's a self-esteem issue."
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This part of the article made me laugh. Personally, I bought mine because I've always talked about getting one. I drive a lot more than your average person. I'm also a courier. I got tired of spending $300+ a week on gas in between work and play. The Prius solved that for me. It's huge. It's got good gas mileage. And it's a Toyota.

Godiva · Aug 4, 2007

<div class='quotetop'>QUOTE(Topgas @ Aug 4 2007, 07:12 AM) [snapback]490459[/snapback]</div>

It's amazing to me how off marketing people can be. These people are in denial. There's a whole new reality coming and knowone wants to admit it in Detroit. Mileage and dependabilty, the only answer for the American mfg's are diesels.
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What about the California market? I think we have some emissions restrictions regarding diesels. (IMO there's no such thing as a "clean" diesel. It's like "clean" coal.)

hampdenwireless · Aug 4, 2007

I agree with most others the Prius sells well due to a combination of factors but primarily MPG and size. Its just the right size. I don't want to see the next Prius grow as it is expected though I will like it if it has both increased mpg and size. I would rather see it be the same size and have even higher mpg. I don't like car size creep aka almost every other car Toyota has made has grown a size each redesign.

The worst of the size creep is the new Highlander, it grew so much that it has only the same mpg yet improved technology. I would have loved to see it with an I4 in the older size with the newer hybrid technology. It would have better mpg by probobly 20%.

Topgas · Aug 4, 2007

<div class='quotetop'>QUOTE(Godiva @ Aug 4 2007, 03:15 PM) [snapback]490583[/snapback]</div>

What about the California market? I think we have some emissions restrictions regarding diesels. (IMO there's no such thing as a "clean" diesel. It's like "clean" coal.)
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Good point on diesels and California. I've heard the newer common rail diesels (like my truck has) will meet all the states emissions. VW is coming out with their diesel next spring that will make it in all the states. Yep, diesels will never do what the Prius does.

richard schumacher · Aug 5, 2007

<div class='quotetop'>QUOTE(pyccku @ Aug 4 2007, 07:33 AM) [snapback]490465[/snapback]</div>

Bingo! Why can't they actually ask a bunch of Prius owners, rather than just having the consultants theorize?
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People who already own Priuses may be atypical. They want to sell Priuses to lots of ordinary people :_>

mrg · Aug 5, 2007

<div class='quotetop'>QUOTE(Tech_Guy @ Aug 3 2007, 05:22 PM) [snapback]490211[/snapback]</div>

All the reasons stated above for buying a Prius are indeed very noble...

But at a gut level, I like the concept of limiting our energy <strike>dependence </strike> addiction on the Middle East.

Keith
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At first glance I thought the Prius look a little weird. I wondered would it get out of the way in time if a truck was approaching? I really had doughts that I would buy one. I just wanted to know what was available. I wanted to prove I was making the right choice when I drove the right car.

The saleman that took me for a ride put the pedal to the metal (we were in a large parking lot) and through my head back. I was not expecting that from this car. My opinion change in a hurry. I when from why should I buy one to why should I not buy one.

The interior space sold me. The smart start sold me. The hybrid sold me. The hatch back sold me. The mileage sold me. The quite sound at the red light sold me. The fold down rear seats with the push of one hand from the back of the car sold me. The more I looked there was nothing else that measured up. I kept finding little things that remind me why I bought a Prius. The list keeps growing. I bought a recliner the other day. I went ang got my SUV to haul it home. Then when I opened the box. I shook my head in disguss. I could have got that in my Prius (as the back was separate in the box).

On my second go round in 2005, I considered Sienna, Highlander or Lexus SUV Hybrid. I wound up with a Murano. Sienna was not Hybrid. The other two were not out yet and had no real gas saving along with to high of price for the hybrid models killed that thought. Then in November 2006 I considered Camry Hybrid. No trunk killed that idea. So now I have my second Prius.

I am still waiting for a mini van, or SUV with real world gas saving like the Prius does for its class.

FL_Prius_Driver · Aug 5, 2007

Nothing inspires FEAR in a major auto manufacturer like missing the latest money making trend. The SUV explosion was the previous market shift. When I see a Cadillac Truck, I have to snicker.

Now the "Hybrid" craze has started and in a astonishing misreading of the obvious, the 'experts?' conclude that the "hybrid" label and the unusual shape make the Prius a money maker.....oh, and we (auto makers) should make it clear that the mpg inprovement from 15 mpg to 20 mpg makes our Land Barges a full member of the latest trend. (Dang it, why aren't they selling like the Prius???)

Just wait till someone (Tesla, Toyota, someone unknown) start making an electric car. It will be fun to watch how that gets misread. Right now it's that "battery technology is not ready" or "the consumer is not ready" or "the market is not ready".....still misreading......

Frank Hudon · Aug 5, 2007

<div class='quotetop'>QUOTE(Godiva @ Aug 4 2007, 12:15 PM) [snapback]490583[/snapback]</div>

What about the California market? I think we have some emissions restrictions regarding diesels. (IMO there's no such thing as a "clean" diesel. It's like "clean" coal.)
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"clean coal" Hammer and Nail! even the smart for 2 has a small diesel, 600cc, and puts out twice the polutants that a Prius does.

the reason for me can be found in the first line of my signature

Hybrid Marketers Might Take A Lesson From Toyota

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Hybrid Marketers Might Take A Lesson From Toyota

ray0825 New Member

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