Toyota Prius: A Case in New Product Development

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Please note:

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.

Case Details:


Case Code : MKTG118 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


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


The case focuses on the world's first mass produced hybrid passenger car - Prius - manufactured by the world's second largest automaker Toyota Motors.

The case explains the new hybrid technology used in the car.

It also looks for the reasons for the success of the original Prius in the Japanese market and of the subsequent models of the Prius launched in the US and other markets.

The strategies for marketing the product in the US are also analyzed.


• History of hybrid vehicles.

• Working and usefulness of hybrid vehicles.

• The growing need for clean and green cars in the 21st century.

• The system Toyota put in place for the manufacture of the original Prius.

• The technology and other aspects and features of the original Prius and its subsequent versions.

• Toyota's marketing strategies in the US.

• The role of buzz marketing in the marketing of new and innovative products like the Prius.


  Page No.
Introduction 1
Background Note 2
Toyota 2
Hybrid Cars 3
Knowledge Management at Toyota 4
The Original Prius 7
The First Generation Prius 7
The Second Generation Prius 9
Outlook 13
Exhibits 14


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