Analysis of Sustainability In Toyota Motor Corporation

SUSTAINABILITY IN TOYOTA MOTOR CORPORATION
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Sustainability in Toyota Motor Corporation
Since its establishment by Kiichiro in 1937, Toyota has grown to become one of the leading manufacturers of automobiles (Toyota Corporation 2019). The company is one of the pioneers of quality in the car manufacturing business, having produced well-known models such as Land Cruiser, Innova, Corolla, and many more. The company mainly uses psychographic segmentation, which focuses on individual lifestyle activities and interests together with their opinions to determine their market segment. Toyota realized that a large number of individuals have become more conscious about their environment, and for this reason, they are willing to buy cars that have less fuel consumption and environmentally friendly such as the electric cars. The market share for electric cars has increased over the past years. In the UK for instance, the sale of electric cars rose by 21 percent in 2018. Similarly, approximately 34 percent of Americans are expected to buy electric cars over the next 10 years (Carrington 2019). The desire of car buyers to switch to electric cars falls in line with the global commitment to reduce greenhouse gas emissions by 2050. These statistics prove that Toyota needs to focus more on the psychographic segment by producing more electric vehicles to suit the rising number of environmentally conscious car buyers to be able to be more sustainable.
Market Strategy
Under the psychographic segmentation, Toyota’s sustainable marketing strategy should focus on lifestyle and consumer buying behavior. Consumer’s purchase decision for sustainable brands is highly dependent on how the product contributes to improving their quality of life. For instance, the customer’s attitude towards the purchase of electric vehicles is triggered by their need for sustainable practices. For this reason, there is a high relation between sustainability performance and meeting consumer expectations.
Product
The application of psychographic segmentation in Toyota involves understanding the types of products that suit the demands of the specific market segment. In this case, sustainable marketing practices need to involve the generation of electric cars, which are becoming more popular among car buyers. Currently, Toyota has a wide range of products that suit the target segment. The car manufacturer produces approximately 28,000 plug-in electric cars every year (LeBeau 2019). A majority of the cars produced are Prius Prime, which is a plug-in hybrid model. These cars are advantageous because they consume less fuel and emit fewer greenhouse gases, meaning they meet the demand of the environmentally conscious consumer. The manufacturing of these electric cars boosts Toyota’s chances of gaining more shares in the market segment. Moreover, electric cars are more environmentally friendly, meaning that they help the company in establishing sustainable marketing.
Price
Aside from manufacturing cars that are environmentally friendly, Toyota has set low prices for its cars to ensure that more individuals are able to afford the vehicles. For instance, the Toyota Corolla Hybrid, which has an eco-sensitive technology, ranges from $22, 950, whereas, the Toyota Prius is priced at $23, 770 (Toyota 2019). The prices of these vehicles are low compared to vehicles from other manufacturers such as the Hyundai Ioniq, which is priced at 30,195 euros, and the Volvo V90 T8, which is priced at 60, 405 euros (Carbuyer 2019). Though from different manufacturers, cars have distinct characteristics in terms of low fuel consumption. However, the difference in prices gives Toyota a better chance of acquiring more market share since its price is affordable.
Place
Toyota’s main distribution strategy is the dealerships. This strategy is sustainable since it eliminates the need for the company to set up offices in every market location, which can easily lead to environmental issues like poor waste disposal and pollution. As part of its sustainable marketing strategy, the company has also set up specific policies, which are adhered to by the stakeholders included in the company’s supply chain (Toyota Corporation 2019). These policies comprise of social and environmental protection standards.
Promotion
With regards to advertising, Toyota mainly advertises its electric vehicles through commercials. The commercials enable the manufacturer to display some of the main features of the vehicles that make it more sustainable and environmentally friendly. In its 2019 advert of the Toyota Corolla Hybrid, the manufacturer brags about the car’s new self-charging feature, which eliminates the time taken to stop and recharge the car’s electric batteries (Toyota UK 2019). The advertisements enable Toyota to describe the ways in which electric cars are more environmentally friendly and convenient to attract more customers. Moreover, through its TogetherGreen program, the company has managed to encourage customers to show more concern for the environment by switching to their environmentally friendly cars (Toyota Corporation 2019). This method of promotion through public relations forms part of Toyota’s sustainable marketing strategy.
The company has also established a well-known brand by employing branding strategies such as a branded house, sub-brands, and the house of brands. The strategy is aimed at increasing the effect of the brand in the market as well as maximize the profits. To maintain its stature, Toyota has set strict policies that govern the use of its brand since it aims at emphasizing mastering perfection.
Key principles of Sustainable Marketing
Marketing allows companies to maintain the current and future wellbeing of their environment by making their operations more compatible with the environment. This means that aside from seeking to satisfy the needs of consumers, the marketing strategies should also consider the environmental effects. The six principles employed by Toyota include predictive engagement through educational practices, preventive engagement, environmentally friendly designs, sustainable pricing, eco-friendly supply chain, and sustainable disposal.
The principle of predictive engagement involves trying to influence the behavioral aspects of the consumers and the employees to help the organization to push for sustainability. Toyota has managed to achieve this through its public relations programs such as the TogetherGreen which forms part of the company’s CSR initiative (Toyota Corporation 2019). Through the campaign, Toyota has managed to educate individuals on the need to go green, which is also an effective marketing strategy since it as at encouraging more individuals to choose electric vehicles. According to Wan et al. (2014, p. 148), the predictive approach is an important element for detecting future effects of company practices and finding means of avoiding the effects. Similarly, the effects of company practices on the environment create tension whenever decisions are being made in the company. Alibadi and Huang (2018, p. 2061) argue that the predictive approach should be used to highlight the various sustainability strategies that the company can implement. Since influence is important in changing the behavior of individuals, the programs aimed at behavioral change are an effective strategy for the company’s sustainable marketing.
The principle of preventive engagement involves establishing a means of getting rid of environmental problems. The head office in Japan is among the offices that have exemplified this strategy (Simao and Lisboa 2017, p. 186). The office is fitted with appliances that are less energy consuming and has VWV system that reduces conveyance power. The building also utilizes rain water by filtering and storing the water for use in the office. Stares (2017, p. 25) states that a company must avoid conflicts that negatively influence its resources. By implementing these measures, Toyota is able to convince its customers that it has taken appropriate steps to become more sustainable, hence improve its relations with customers.
Eco-friendly designs is also one of the most important marketing principles for Toyota. The company cannot employ sustainable marketing practices if its products are not environmentally friendly. The company has been working on redesigning their products to be able to minimize the life cycle impact of the body design on the vehicle. For instance, the Toyota Corolla LE Eco trims energy under the hood and includes Valvematic Technology which boosts fuel efficiency while cutting carbon emissions (Toyota Corporation 2019). Sustainable marketing, therefore, begins by coming up with a sustainable design (Mohajan 2012, p. 23). Similarly, Paettie and Crane (2005, p. 359) argue that sustainable marketing covers a broad range of activities, including changes to the production process, packaging, methods...