The Prius Story:

Turning Responsibility into Opportunity

Mary Nickerson

National Marketing Manager

Toyota Motor Sales, U.S.A

More Cars on the Road

750 MILLION cars and trucks

Toyota’s Global Earth Charter

• Help enrich society

• Pursue environmental technologies

• Volunteer activities

• Work in cooperation with society

Hybrid Synergy Drive

Prius

• Family demonstration programs in critical U.S. markets– Provided real world feedback / advocates

• Focus groups– Uncertainty about Prius benefits /practicality– Seen as a a risky investment

• Research Clinics– High interest with innovators / tech. savvy– Compelled to find out more– 98% of participants used internet

Initial U.S. Research on Hybrids

– Needed to educate consumers about benefits and practicality of hybrid technology– Pricing critical– Internet was key method to deliver vehicle information to interested parties

Original Prius Target – Different Mindset • Tech Pioneers & Environmental

Friendly– Looking for the latest technology– Sensitive to environmental issues– Making a statement

• Demographics– Older (Baby Boomers)– Predominantly Male– Highly educated– Upscale income

Prius

Evolution of Prius Target

• Tech Pioneers & Environmental Friendly– Looking for the latest technology– Sensitive to environmental issues– Making a statement

• Innovators & Early Adopters – Eager to test latest

technology– Willing to take risks– Deeper emotional

needs = People with a passion for principle

Position Prius and Hybrid Synergy Drive as an exciting, new “no compromise” solution that gives consumers what they want and Society what it needs

Strategic Marketing

• Celebrity partnerships– Oscars

• Annually provide Prius vehicles to celebrities to drive to Oscars

– Celebrity owners such as,• Cameron Diaz• Leonardo DiCaprio• Robin Williams• Ellen Degeneres• Sting

– Allows them to show their commitment to the environment and provides Toyota with unsolicited testimonials from Hollywood community

– Product placement opportunities

• Toyota’s 3rd best selling car

• Sold more than 80% of hybrids in U.S.

• Over 2.0 million Toyota hybrids sold worldwide

Prius

Current Hybrid Line-Up

Innovation

Plug-in Hybrid

Fuel-Cell Hybrid

Electric vehicles

Manufacturing Sustainability

Logistics

Procurement

Logistics

Disposal

Use

Customer

Dealer

Recycling

Recycling company

Production R&D

Toyota

Extraction of resources

Rawmaterials

Energy WaterFuel

Parts & materials suppliers

Manufacturing Sustainability

Partnerships

Philanthropy

Philanthropy