Toyota Fuel Cell Vehicle

Experience the future. Experience innovation.

Where will innovation take you?

Kate Sylvester (COMM483)

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Introduction Situational Analysis At the 2014 Consumer Electronics Show Toyota introduced the Toyota Fuel-Cell Vehicle (FCV) to North America for the first time. The FCV represents the next generation of autos by using hydrogen-power with greater efficiency than any other current competitor. The Toyota FCV will debut in Japan in spring 2015 and in the U.S. and Europe this summer. The U.S. currently only has three states with hydrogen-fueling stations, but Toyota hopes to capitalize on this opportunity to encourage the creation of additional hydrogen-fueling stations across the country, particularly in California and on the East Coast Hydrogen Highway. Connecticut is a leader in hydrogen-fuel technology as it is one of the only three states (in addition to California and South Carolina) to have hydrogen-fueling stations. Unfortunately, the SunHydro fueling station is the only one on the East Coast. For Toyota to break into the market on the East Coast, and for the adoption of the Toyota FCV to be possible, additional hydrogen-fueling stations will need to be built. Problem There are only 13 hydrogen-fueling stations in the U.S. today, with only one on the East Coast. Because of the lack of hydrogen-fueling stations, fuel-cell vehicles have yet to gain popularity among the public and few people even recognize that Toyota is making a fuel cell vehicle. SWOT Strengths

Toyota is an industry leader and is ranked number one in car quality according to Consumer Reports survey.

Toyota maintained its position as the worlds number one automaker with sales of 7,615 vehicles in the first nine months of 2014.

The FCV has zero emissions other than water vapor and presents greater efficiency than any other similar Toyota vehicles.

Weaknesses The FCV will have a high cost at an estimated $69,000 in the U.S. Toyota still struggles with the pushback from the acceleration lawsuit and recall. Toyotas Prius did not immediately have success in the U.S. when it was released.

Opportunities It is anticipated that Hydrogen will become a leading energy source in the future. Many states are adopting zero-emission standards for automakers; Connecticut has new

standards for the percentage of new car sales that must be zero-emissions. Connecticut already has one hydrogen-fueling station (Wallingford, CT) and it is the only

station on the East Coast. Threats

Earlier this year Honda and Hyundai debuted their first hydrogen FCV in the U.S. and Mercedes-Benz and General Motors are expected to debut FCVs in the next 18 months.

There are only 13 hydrogen-fueling stations in the U.S. and the majority of them are on the West Coast (see appendix A).

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Hydrogen-fueling stations, and power, are expensive and take a long time to see a profit. Research Secondary SunHydro Media Scan An analysis of articles about Connecticuts current hydrogen-fueling station, SunHydro, revealed that it is the first of an anticipated privately funded but publicly accessible East Coast Hydrogen Highway from Maine to Florida according to the Hartford Business Journal. Additionally, Toyota has already partnered with SunHydro in the past. According to the Hartford Courant, in 2010 Toyota supplied 10 FCHV-adv fuel cell vehicles to SunHydro for a Connecticut test program. In the Courant article Craig Scott, Toyotas advanced technology vehicle manager, acknowledged the importance of increased awareness for the FCV market in Connecticut when he said, The placement of the fuel cell vehicles in the Connecticut market will increase awareness of fuel technology and spur development of much-needed infrastructure prior to our planned market introduction in 2015. Additional data from a CNET article addressed SunHydros high costs, saying that one kg of hydrogen will cost $10, but will give the driving range of 2.2 gallons of gas. According to a 2010 Wired article SunHydros station is looking to appeal first to early adopters, but needs to fill about 10 to 15 vehicles a day, which it has yet to do. The article clams that SunHydro anticipated the next fueling stations in the desired East Coast Hydrogen Highway will be in Portland, Maine; Braintree, Massachusetts; Wallingford, Connecticut; South Hackensack, New Jersey; Claymont, Delaware; Richmond, Virginia; Charlotte, North Carolina; Atlanta and Savannah, Georgia; and Orlando and Miami, Florida. Relevant Connecticut Legislation An analysis of Connecticuts current legislative climate toward zero-emission vehicles and hydrogen fueling stations revealed that Connecticut already has developed a Zero Emission Vehicle Action plan like California. According to an AFC report the ZEV Action Plan identified 11 priority actions to accomplish, including deploying 3.3 million zero-emission vehicles and developing adequate fueling infrastructure by 2025. Connecticut also has a Alternative Fuel and Advanced Technology Vehicle Grant program, developed by the Connecticut Clean Fuel Program, to encourage the use of alternative fuel and advanced technology vehicles like hydrogen fueled vehicles. Research about Connecticuts transportation funding also showed that Connecticut, according to a Pew Charitable Trust report, relies more on government funding than state money for transportation than other state, with 30 percent of transportation costs coming from the federal government. Department of Energy Analysis Further, a scan of the Department of Energys website and its analysis of fuel cell vehicles showed that the Department believes, Fuel cell vehicles (FCVs) have the potential to significantly reduce our dependence on foreign oil and lower harmful emissions that contribute to climate change. The website also identifies the challenges facing the vehicles to remain competitive particularly in terms of costs (see appendix B or chart below). It outlines the benefits of the FCVs in great detail, identifying how they lower greenhouse gas emissions, reduce oil dependence and create less air pollutants.

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Fuel Cell System Costs are Approaching DOE's Target for 2017

Source: USDOE, Fuel Cell Technologies Office, Accomplishments and Progress.

Car Buying Trends Finally, an analysis of surveys and news coverage of the trends in the car buying market revealed that U.S. auto sales have been increasing over the last few years. This increase has, however, been fueled by drivers who are 50 plus years old. According to a July 2014 J.D. Power and Associates report baby boomers are still the largest group buying new vehicles today; they account for 38 percent of new vehicles sold in the first half of 2014 according to the report. The report says that in 2013 baby boomers accounted for 40 percent of new vehicles sales, Generation X 24 percent and Generation Y 23 percent. This data reveals that baby boomers are the number one purchaser of new cars each year and a clear public. Further, a Forbes article titled, Electric car buyers younger and richer than hybrid owners, claims that electric vehicle buyers tend to be between 36 and 55 years old and have an average household income of $175,000 or more, while hybrid vehicle buyers tend to be 56 years or older but have a lower annual income. According to a Forbes article, Polk an automotive research firm says that hybrids will continue to comprise fewer than 3 percent of all car sales in the U.S. for the anticipated future. This data shows that hybrid vehicles still have not reached large popularity even years after their introduction and acceptance in the market.

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Primary Research Suggestions The primary research needs to focus on exploring peoples feelings toward the use of fuel cell vehicles and their overall awareness of the benefits of these vehicles and hydrogen-fuel in general. This research would help analyze the potential for the FCV market in Connecticut and to establish a baseline of knowledge for peoples awareness and understanding of the technology. The best recommendations for gaining this information and insight would include informal methods like focus groups and a competitive analysis. A survey would be the best formal method here. Focus groups and surveys would be key in understanding and analyzing peoples understanding of fuel-cell vehicles and hydrogen-fuel before beginning the campaign. It is important to gauge how informed these publics are. A focus group would include licensed drivers from across the state that commute over 50 miles a day and own their own cars. The focus groups would be run across the state and would be used to test key messaging about the benefits of fuel-cell vehicles and to gauge why people have certain attitudes about the technology. A survey would be a broader way of gauging what factors people across the state take into account when buying cars, such as price, efficiency, style, emissions. The survey participants would be randomly selected from all people with registered vehicles in the state. Finally, a competitive analysis would be key to understanding how the competing manufacturers of other fuel-cell vehicles (Honda and Hyundai particularly) are marketing their vehicles and approaching the market with their products. It would be important to understand their marketing and messaging techniques for their similar vehicle. Planning Goals

To build Toyotas reputation as a cutting edge leader in the fuel cell vehicle technology To gain support for the development of additional hydrogen-fueling stations in

Connecticut Objectives [Related Goal: To build Toyotas reputation as a cutting edge leader in the fuel cell vehicle technology]

To motivate 100 people to purchase the Toyota FCV within a year of its release (output) To generate enough sales to rank number one in sales of fuel-cell vehicles within a year

of the FCVs entry into the U.S. market (output) To generate 10 top-tier media placements about the FCV within the first six months of

U.S. sales (output) [Related Goal: To gain support for the development of additional hydrogen-fueling stations in Connecticut]

To educate all Connecticut residents within 50 miles of the Wallingford hydrogen-fueling station of its presence by 2016 (process)

To activate Connecticut state legislators to create funding models for additional hydrogen-fueling stations, like California, by 2020 (outcome)

To establish plans to build five additional hydrogen-fueling stations on the East Coast Hydrogen Highway by 2030 (output)

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Publics The primary publics Toyota needs to target in this campaign are car owners in Connecticut, particularly those who are 50 years or older because they are the ones the primary research indicates by the largest percentage of new cars. Drivers who are wealthier and more environmentally conscious will be a specifically important priority public. Another primary public is the current and potential owners of hydrogen-fueling stations in Connecticut or New England. These owners and investors, like the owner of SunHydro, influence the availability of hydrogen as a fuel source and the likelihood that new hydrogen fueling stations will be built and accessible to Toyota FCV owners. The secondary publics are the legislators and environmental regulators. The legislators have the ability to pass legislation requiring zero-emissions standards or to provide tax incentives for fuel cell vehicles purchases. Both of these legislative actions are key to increasing the number of fuel cell vehicles and hydrogen-fueling stations. Environmental regulators can influence the rate of adoption for fuel cell vehicles by advocating changes They can help push legislators to adopt new zero-emissions standards and standards for the number of hydrogen fueling stations in the state. The intervening public is mainly the news media both locally in Connecticut and nationally. An additional intervening public is Connecticut residents who do not have drivers licenses but can still contribute to the conversation in the state and the desire to comply with new environmental standards. Messaging Primary: Fuel cell vehicles are the future of automotive technology.

Secondary: Toyotas FCV has zero emissions aside from water. Secondary: Toyotas FCV offers greater efficiency than any previous vehicle of its kind.

Primary: Connecticut is the leading state in New England for hydrogen-fueling technology.

Secondary: SunHydro plans to develop an East Coast Hydrogen Highway from Florida to Maine, with Connecticut as the starting point.

Secondary: The early adoption of Hydrogen-fueling stations is necessary to secure an environment for fuel cell vehicles to succeed.

Spokesperson There will not be a celebrity spokesperson for the campaign; instead the campaign will focus on using a TED Talks style format for its spokespersons. Because the campaign is focused on innovation, it will use this new format of spokespeople to address a variety of angles for the campaign. The individuals identified as the Innovation Experts will be featured in Toyota FCV commercials, social media campaigns and events. These Innovation Experts will speak about the benefits of fuel cell vehicles and hydrogen fuel technology while also promoting the importance of innovation in improving our future. These Innovation Experts will be featured panelists at our Innovation Academies and the Innovate the Future tour.

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Theme In order to tie the elements of the Toyota FCV to the importance of developing hydrogen-fueling technology throughout the state and nation, the theme and messaging of the campaign will all focus on the future and innovation. In keeping with the meaning of Toyota's potential name for the car (the Mirai meaning future), the campaigns theme will be: Experience the future. Experience innovation. The tagline will be: Where will innovation take you? This theme and tagline will be incorporated into the Innovate the Future tour (TED Talks), the Innovation Academy programming for students and the Innovation Experts that will be used throughout the campaign and the promotion of the importance of FCVs and hydrogen fueling. Strategies & Tactics Strategies [Related Goal: To build Toyotas reputation as a leader in the cutting edge of fuel-cell vehicles]

To make Toyotas FCV synonymous with innovation. To create educational materials about the differences between fuel cell vehicles and

hybrids or electric cars. To build anticipation for the arrival of the FCV throughout the state.

[Related Goal: To gain support for the development of additional hydrogen-fueling stations in Connecticut.]

To mobilize millennials to promote the importance of hydrogen-fueling stations for the future.

To draw attention to Connecticuts hydrogen-fueling stations significance as one of only 13 in the country

To motivate investors, infrastructure experts and legislators to fund new hydrogen fueling stations in Connecticut as part of the potential East Coast hydrogen highway.

Tactics

[Related Objective: To motivate 100 people to purchase the Toyota FCV within two years of its release]

o We will have a 10-city FCV Innovate the Future Tour during the summer of 2015. This tour will bring the Innovation Experts to Toyota dealerships and local events throughout the state discussing the FCV benefits. People will also be able to test-drive the Toyota FCV during these events.

o We will pay for billboards, bus wraps and television ads promoting the Toyota FCV throughout the state during the first year of the release.

o We will host a social media campaign titled #whereinnovationtakeyou with question and answer periods to engage people about the FCVs potential impact on the future and the importance of innovate technologies like the FCV.

[Related Objective: To generate enough sales to rank number one in sales of fuel-cell vehicles within a year of the FCVs entry into the U.S. market]

o We will host test drive events for the Toyota FCV during the Innovate the Future tour throughout the state.

o We will provide free hydrogen-fueling incentives to people who purchase the Toyota FCV during the first year of its availability.

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[Related Objective: To generate 15 media placements in major Connecticut area newspapers about the FCV within the first six months of U.S. sales]

o We will hold a press conference for the premiere of the FCV in Connecticut at SunHydro in Wallingford, inviting key influencers and auto reporters and bloggers to the event.

o We will send press releases to key auto reporters for the New York Times, Connecticut Post, New Haven Register, Hartford Courant and Providence Journal about each of the FCV Innovate the Future tour stops.

[Related Objective: To educate all Connecticut residents within 50 miles of the Wallingford hydrogen-fueling station of its presence by 2016]

o We will use the social media campaign #wherewillinnovationtakeyou to discuss the relevance of hydrogen fueling in innovation and the value of hydrogen fueling.

o We will host demonstrations at SunHydro to show people how the cars work and to explain the hydrogen-fueling process.

o We will host schools at SunHydro for Zero Emissions day, with events tied to the importance of cutting oil dependence and creating a greener future.

o We will also create and sponsor an Innovation Academy program for elementary through high school students in the Wallingford area to present innovative ideas similar to a science fair.

[Related Objective: To activate Connecticut state legislators to create funding models for additional hydrogen-fueling stations, like California, by 2020]

o We will hire lobbyists on behalf of Toyota to lobby Connecticut State Legislators on the importance of subsidizing the hydrogen-fuel stations to make Connecticut a leader in innovation and environmental responsibility.

o We will encourage environmental activists in the state, particularly college and high school student groups, to call and write their representatives about the important opportunity Connecticut has to be a leader in hydrogen-fueling technology.

o We will create a social media program using a Twitter and Facebook campaign where people take a pledge to have zero-emissions by 2050.

[Related Objective: To establish plans to build five additional hydrogen-fueling stations between Connecticut and New York by 2030]

o We will identify the key commuter areas in Connecticut where there is the most traffic and target these areas as potential stations with the test-drive an FCV events.

o We will release a report on the areas in Connecticut and the East Coast where the Toyota FCV purchases were the highest in the first two years after the release of the FCV.

Events The campaigns main event series will be TED Talks style presentations and discussions about innovation around the state called the Innovate the Future Tour. This tour will be a series of events throughout the year around the state. This event series will not only focus on fuel cell technology but will focus on inspiring innovation and futurist ideas, as the Toyota FCV represents the future of innovation. The first of these TED Talks style discussions will be at the SunHydro Station in Wallingford with the owner, Tom Sullivan, discussing his steps to

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innovation for the creation of the hydrogen fueling station. The events throughout the year will be hosted by leading innovators in the state at schools, businesses and community events. The discussions will all be live streamed to Toyotas website and promoted heavily on social media using hashtags like #innovationnation #fuelinginnovation #wherewillinnovationtakeyou. A second related event series will be the integration of these innovation discussions into community programing for elementary through high schoolers known as the Innovation Academy. The Innovation Academy will be a similar format to a science fair or the Connecticut High School Innovation Expo. The event will have speakers about innovative ideas, competitions for students to enter science projects and opportunities to specifically discuss the FCV innovation. Other events will include test drive event for the Toyota FCV throughout Connecticut, with test-drive events frequently at the Wallingford hydrogen fueling station. We will also host press conferences at the beginning of the FCVs release in Connecticut to inform all reporters and residents of the new innovative ideas Toyota is bringing to the state through their programing. The Toyota FCV will not be released in Connecticut until World Environment Day, June 5, 2015. The day will include activities throughout the state tied to the environment and sponsored by Toyota in conjunction with the cars release. The key community service event will be a statewide highway clean up project for 95. The highway cleanup project will be marketed as a way to clean up the hydrogen highway of the future. Toyotas other big event in the first year of the FCVs release will be on Zero Emissions Day September 21, 2015. On Zero Emissions Day Toyota will organize pledges to commit to having zero emissions by 2030. Toyota will also give away 20 FCV vehicles randomly throughout the state in celebration of the day. Timeline Toyota will implement a yearlong campaign to introduce the Toyota FCV to the U.S. and to increase awareness for the importance of hydrogen fueling. April 2015: The Toyota FCV will premiere in Japan and the social media campaign for Toyotas U.S. innovation programming will begin in the U.S. May 2015: Toyota will host the first Innovation Academy at Yale and will also have key innovators speaking at school events throughout the state. June 2015: On World Environment Day (June 5, 2015) Toyota will officially launch the Toyota FCV in Connecticut and California. Toyota will host events at SunHydro to test-drive the vehicle. Toyota dealerships throughout the state will have events also. September 2015: Toyota will host Innovation Academy conferences at schools throughout the state, bringing together students who have worked on innovative science and technology projects. On Zero Emissions Day (September 21, 2015) Toyota will organize a pledge program to pledge to be emissions free by 2030. Toyota will also give away FCVs throughout the state.

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December 2015: Lobbyists for Toyota will begin to prepare bills to propose when the General Assembly goes into session in February. There will continue to be Innovation Academy events throughout the state as well as the TED Talks style Innovate the Future tour. February 2016: When the Connecticut General Assembly goes into session, Toyota lobbyists and environmentalists will work together to pass legislation providing tax breaks or subsidies for fuel cell vehicles and for hydrogen-fueling station development. April 2016: At the Toyota FCVs one-year birthday Toyota will host one-year anniversary programs announcing the next step of the East Coast Hydrogen Highway development, revealing the potential next stations to be developed in Connecticut and throughout the East Coast. *Throughout the campaign Toyota will be integrating a social media campaign with key hashtags and Twitter chats to spark conversation about innovation and fuel cell technology. Evaluation Outcome Outcome will be measured by changes in opinions about fuel cell vehicles and hydrogen fuel. These changes in attitude will be measured by focus groups and surveys similar to the ones outlined in primary research before the campaign began. The focus groups and surveys will be randomly given to registered drivers in Connecticut to gauge how much they know about fuel cell vehicles and the presence of the hydrogen fueling station in Connecticut. This will enable us to see how effective the campaign was at changing attitude and awareness about the issue. These focus groups and surveys will be taken one year after the campaign begins so approximately in June 2016. The number of FCV models sold in Connecticut by Toyota, and their competitors, in the last year will also be analyzed; however, based on the slow adoption anticipated it will not likely give very much evidence of awareness. Outgrowth Outgrowth will be measured based on the opportunities that arise from Toyotas tactics. These opportunities include any legislation created or passed pertaining to zero-emissions or the planning or subsidization of hydrogen-fueling stations. Additionally, any contracts or plans to build additional hydrogen-fueling stations in Connecticut will be accounted for. It will also be measured based on the number of media impressions generated through the social media campaign and media placements. The social media engagements levels after the Twitter and Facebook campaigns will be analyzed to see the total reach and impact of Toyotas campaign and messages about the FCV. Output Output will be evaluated based on the ranking and sales of Toyota for the FCV in 2015. The output will be measured specifically by the number of events Toyota hosted to promote the FCV and the number of people who rode in the FCV during these events. It will also analyze the impact of the community relations programming, particularly looking at the attendance and participation levels at the Toyota sponsored science fairs and innovation conferences compared to previous years.

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Appendix Appendix A: Map displaying the current 13 hydrogen stations in the U.S. courtesy of the US. Department of Energys Alternative Fuels Data Centers Alternative Fueling Station Locator.

Appendix B: Graph of the projected transportation fuel cell system cost for 2017 courtesy of the U.S. Department of Energys fuel economy website.

Source: USDOE, Fuel Cell Technologies Office, Accomplishments and Progress.