Market segmentation ensures that a product is targeted to the most appropriate market segment that has needs more likely to be fulfilled by the features of the product. Every product is designed to fulfill given consumer needs and consumer segments that is most pressed by the needs fulfilled by the product are more likely to purchase the product compared to other market segments. Using differentiated segmentation strategy, we have settled on two groups of people who are more likely to find Toyota Prius suitable compared to other market segments. We are focusing on people who are more concerned with global warming and other climate related issues and people with young children who are likely to travel with their babies in the car. There are many reasons these two market segments are perceived best to market Toyota Prius depending on their needs and the features that comes with Toyota Prius.