In the modern world many automotive companies are looking for more sustainable and economical

solutions for their conventional diesel or petrol engines. Toyota took the lead in the market with the
introduction of “Toyota Prius” in October 1997 (CORPORATION., 2008) which became the worlds first
commercial hybrid car. Followed by this petrol and electric powered technology other main
manufacturers also started introducing many hybrid vehicles to their fleet, targeting different market
segmentations.

When segmenting markets for hybrid cars Price, Fuel Economy and Power are some of the major
components that producers look at. Following table represents few of the hybrid cars in the market
today with their targeting markets. All data is based on 2018 car models. (Carsguide,2019)

Toyota Prius Toyota Camry Honda Insight BMW 330e Mercedes-

V Hybrid Benz E350e
Price in 29,590 34,977 31,900 51,850 133,400
Australia
Fuel Economy 3.9 4.2 6.1 2.1 2.4
L/100 km
Power (kw) 73 133 127 135 155
Target Market Differentiated Differentiated Differentiated Concentrated Concentrated
Table 1 Hybrid Vehicles Comparison (Carsguide,2019)

From the specifications given, Prius V & Insight falls into the market segment where affordability of
the vehicle is highly important. Moreover, they have limited resources to fund for the vehicle. Toyota
Camry is a family car which is targeted for the mid income people who seek for comfort and fuel
economy, BMW & Mercedes is targeted for a concentrated market who has high level of income and
who users the car as a symbol of status.

Target Markets for BMW i8 & Mitsubishi MiEV

EV (2011-2015) vs. Hybrid (2000-2004) Initial Popularity (Ipsos, 2018)

1
BMW i8 is a high-priced sports car whereas Mitsubishi MiEV is an electrically driven economical car.
When analysing the brochure available in the BMW official website (BMW Australia, 2019) it
indicates that it’s a high-performance hybrid vehicle. Its futuristic body has been engineered with
expensive high tech “Carbon Fibber Reinforced Plastic” ( CFRP) to increase its sports performance by
reducing vehicle weight. And the combination of petrol engine and electric motor generates 362
horse power. Even though, the marked price of this car is higher, compared to other supercars it is
more sustainable and economical to drive. I8 has four seats but back row seats are not ideal for
adults. Profile of people who buy this sort of a car are mainly early adopters who are in the mid age
range of (30- 45) and who has a high level of income. Therefore, BMW’s target marketing strategy of
i8 is concentrated marketing.

On the other hand MiEV is an complete electric vehicle with 160km driving distance form a single
charge (Mitsubishi-motors.com, 2019). The major benefit of MiEV is that running cost being much
cheaper compare to combustion engines and it has zero emission. Disadvantage of this car is that it is
limited to a 160km ruining distance. Therefore, it is not ideal for intercity traveling. Mitsubishi has
named this car as “Urban Connection” due to its compact size and eco friendliness. When analysing
the marketing information and product specifications provided in the official website it is evident
that this car is targeted for families or people who work in the city and who seek for an economical
transport method. Therefore, target marketing strategy Mitsubishi has used is Differentiated
marketing strategy.

Reference

BMW Australia, (2019). [online], BMW I8 brochure, viewed 18/032019,

https://www2.bmw.com.au/ebrochure/i8_BRO_02_2016.pdf

CORPORATION., T. 2008, Toyota Global Site | The Hybrid that Started it All, Toyota Motor
Corporation Global Website. viewed 17/03/2019,
https://www.toyotaglobal.com/company/toyota_traditions/innovation/nov2008_feb2009_1.html.

CarsGuide. (2019). carsguide.com.au - more than just another classifieds website. [online] , viewed
18/03/2019,https://www.carsguide.com.au/

Ipsos (2018). Is There a Target Market for Electric Vehicles? ,Ipsos, pp.1-2.

Mitsubishi-motors.com. (2019). Mitsubishi MiEV. [online], viewed 18/03/2019,https://www.mitsubishi-

motors.com/en/showroom/i-miev/catalog/pdf/17_5my_i_miev_g_exp.pdf.