Influx

Toytota’s Prius has been one of the major brand successes of 2004. Toyota now expects to sell over 100,000 units in 2005. The first model, marketed heavily on its environmental credentials sold a mere 15,000.

http://www.nypost.com/business/20159.htm

http://msnbc.msn.com/id/5963500/site/newsweek/site/newsweek/

What changed?

Timing certainly helped Toyota; rising gas prices coincided with the launch with the new model and helped to accelerate sales. The main reason for success was how the environment was de-emphasized as a selling point. The new Prius had a host of features to attract early adopters; voice activated controls, a navigation system and better styling and performance than the previous model. Consumers were given a myriad of reasons to buy a Prius, not just the environmental story. By pilling up the features and allowing Prius to compete directly with other sedans, Toyota made sure the purchase decision did not require a trade-off.

The Prius might be the last dedicated hybrid, with Toyota and Honda incorporating hybrid technology into their existing models. Consumers will then have the chance to buy SUVs without feeling guilty, a win-win.

Lexus hyrbrid SUV sets a record for pre-orders

What can other brands learn from the Prius?

The environment and sustainability are certainly going to play a much more important role in products, but they shouldn’t be the sole focus of the selling message. Consumers don’t want to buy on that single issue alone, products must perform well, as is the case of organic foods, which are required to taste as good as their non-organic counterparts.

The Prius model of environmental marketing could soon be replicated by the manufacturers of household appliances. Companies like Whirlpool, will offer products that combine sophisticated designer aesthetics and internal engineering, to create a new generation of environmentally efficient household status symbols. Here, the major selling point will be the aesthetics, with environmental story, an added benefit.

http://www.nowhouse.org/

Environmental issues are also emerging in surprising categories. Earlier in the year, Nike launched the limited edition Mayfly. Billed as the world’s lightest running shoe, it had a lifespan of 60 miles and after use, it could be returned to Nike for recycling.

http://sports.espn.go.com/espn/sportsbusiness/news/story?id=1814284

Again, like Toyota with the Prius, Nike used exclusivity and lightness as features to create a story for the Mayfly, rather than just focusing on the unique recycling angle.

Another example is the emerging household cleaning brand, Method, that’s combining radical packaging with environmental sensitivity. The brand just got picked up by Target.

Method household cleaning

Also, see Plenty a new magazine focused on smart living. It’s clearly trying to re-positiong environmental thinking and living as smart and cool.

plenty magazine

The introduction of environmental features is adding another dimension to products, but this dimension alone is not enough to convince consumers. It needs to be combined with other features to create a powerful story that justifies the product’s place alongside the competitive set.