An Analysis of Sustainable Marketing Strategies for Toyota Motors

This report provides a comprehensive analysis of Toyota Motors' sustainable marketing strategies within the context of the automotive industry. It begins with an introduction to sustainable marketing and a background of Toyota Motors, followed by an examination of the sustainable issues facing the industry, including a PESTLE analysis. The report delves into the level of natural resources used, the triple bottom line of Toyota Motors (social, environmental, and economic sustainability), and the impact of sustainability issues on the company. It assesses Toyota's current sustainable practices, including waste reduction, water consumption, and carbon emissions. The report concludes by summarizing the key findings and offering insights into Toyota's approach to sustainable marketing. The report emphasizes Toyota's commitment to environmental responsibility and its efforts to integrate sustainability into its business operations, highlighting its achievements in resource efficiency and emission reduction.

Sustainable Marketing
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Table of Contents
Introduction......................................................................................................................................3
Background of Toyota Motors.........................................................................................................4
Sustainable Issues facing Industry...................................................................................................4
PESTLE Analysis of Toyota........................................................................................................4
Level of Natural Resources being used........................................................................................6
Triple bottom Line of Toyota Motors..........................................................................................9
Impact of Sustainability Issues......................................................................................................10
Current Sustainable Practices of Toyota........................................................................................12
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
Sustainable marketing is a feature of the larger field of sustainable community development.
Sustainable marketing is a new perception in promoting and trade but by this time it becomes the
most desired approach for the multinational companies. Sustainable marketing is grounded on
the notions of conservational and communal sustainability and seeks to meet the desires of this
generation without messing with the future. It is basically the bigger theme in the trade, which is
based on everything from wind power to eradicating the Trans fats.
This report will outline the sustainability issues in an automotive industry of Australia.
The chosen company here is Toyota Motors. The study will identify the environmental factors
that are creating the need for sustainable marketing within Toyota Motors. It will also outline the
probable impression of the sustainability matters of the establishment in the future. The report
will also evaluate the extent to which Toyota motors is currently managing the sustainability
within the business.
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Background of Toyota Motors
Toyota Motor Establishment is the parent corporation of Toyota Group. The company is the
major automobile builder in the planet. There are nearly 600 subsidiary businesses which are
involved in the manufacturing of vehicles, automobiles parts, and marketable and industrial
vehicles. The business began in 1933 as a partition of Toyoda Automatic Loom Works Ltd. It
was during the 1950s that Toyota’s automobile manufacturing workshops were back in
operations and to gain the competitiveness, the stated firm initiated the careful study of technical
and economic superiority. The business’s automotive section comprises the strategy, production,
assembly and sale of the traveller vehicle, and commercial vehicles such as trucks and also sells
related shares and fixtures ("Challenge, Commitment, Progress", 2011). Toyota’s automobiles
are traded in more than 170 nations and regions. The stated firm employs over 300,000
employees across the globe and leads the automotive business in the environmental technologies
with the achievement of the hybrid skill on the Prius and Camry Hybrid.
The supply chain integrated by Toyota Motors was one of the leaders in Low-cost supply
chains. The entire supply chain of the company was developed with an aim to decrease the prices
and get the price to nominal possible values (Chen, 2015). The supply chain advanced by Toyota
is very highly assimilated and had a comprehensive incorporation of the right from the raw
material suppliers to its vendors in composition with the industrialized units, warehouses,
wholesalers and to the end consumers.
Sustainable Issues facing Industry
PESTLE Analysis of Toyota
Political: The political stability in the major markets of the countries in which the automotive
giant is operating is an opportunity for the company. Free trade contracts between Japan and
other nation’s present occasions for better market penetration. The business friendly environment
in the developed countries provides a great opportunity for the Toyota ("CSR
Policy/Organization and Structure", 2015). The worldwide automobile business is a subject for a
variety of political influences such as political constancy, foremost geopolitical tendencies and
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others. The stated firm has also knowledgeable direct influence of the political issues in many
occurrences.
Economic: There are many economic factors that affect the automotive industry. Some of these
factors are the amount of inflation, currency exchange rate, and macro-economic climate in the
nation and in the business (Dutta, 2011). Cost of labour and tax rates also have direct and
indirect implications on the revenues of Toyota. As for illustration, the high inflation rate in
India, affect the sales of Toyota by 58 per cent in the financial year 2014.
Social: In the current business environment, there has been an increment in the customer
consciousness and matter about the environmental inferences for driving a vehicle and it is the
most significant social propensity in the current business context to be addressed by automobile
builders. Toyota is also attempting its best to address these issues by growing its emphasis
towards the sustainable manufacturing by producing more electric and hybrid cars (Fliedner,
2012). The sustainable marketing of the stated firm also gets impacted by other social factors
such as family values, variations in the consumer attitudes and opinions in the direction of the
automobile and travelling.
Technological: There has been tremendous improvement in the technology over the last few
years. The enhancement in technology has always been a great opportunity for the automobile
companies. The rising trend of the E-commerce is a great opportunity and always help in
promoting the trade of the company (Frick & Laugen, 2012). Enhancement in technology always
delivers great opportunities for automotive industry to upsurge its business and to operate its
business in a very smart and productive way.
Environmental factors: the decline in the reserves of oil is an opportunity for Toyota to develop
its market of modern technology cars. The company could utilise this opportunity in promoting
its battery or electric cars (Frick & Laugen, 2012). Many specific environmental friendly stances
by many multinational companies are one of the fundamental concerns for the industry. If
Toyota Motors want to sustain its name in the industry as the most sustainable company, it will
have to put a lot more emphasis on the environmental factors.
Legal factors: Toyota Motors is considered to be one of the greatest automotive companies due
to its operations throughout the world. The progression and purifying of the lawful laws
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pertaining to the consumers have provided a great prospect for Toyota to do trade internationally
in an effective way.
Level of Natural Resources being used
The culture and principles of Toyota have the fundamentals of eliminating the waste and making
a commitment towards a recycling-based society. On its Global Vision 2010, the stated firm
aimed that they work on the transition from the area of large scale production and large volume
consumption regarding a recycle-oriented society (Gao & Low, 2014). Toyota Motors is
challenging the extensive assumption that mass production and mass depletion lead to a mass
disposal by the means of reprocessing and recycle of waste resources. It is also addressing that
the requirement of better utilisation of the finite possessions are consumed in such a way that it
doesn’t contribute to global warming, air contamination and other methods of conservation
impact (Grant, 2007). The company is currently converging on resource output enhancement by
altering its manufacturing process and practices.
Toyota Motors in Singapore has established the goals in order to achieve the zero landfill
waste. During the financial year 2005, the company prepared its third action plan that aimed at
giving zero indirect landfill waste.
Figure 1: Industrial Waste by Toyota Motors
Source: (Grant, 2007)
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During 2003, Toyota Motors focused on better utilisation of industrial waste produced mainly
from its casting process. During the year, Toyota Motors generated around 18,368 tons of
manufacturing waste and was able to recycle 17,196 tons of it, which is at 94% recycling rate. It
was during the same year, the company focuses on achieving the target of zero landfill waste
(Heizer & Render, 2014). Toyota Motors generated 1,097 tons of direct landfill waste, which
during 2003 fell to 340 tons. It clearly indicates that the aim of Toyota Motors to achieve zero
direct landfill waste is within reach.
Figure 2: Direct and Indirect Landfill Waste of Toyota Motors
Source: (Gao & Low, 2014)
The major achievement of Toyota Motors in the financial year 2003 also includes the
further removal of the washing procedures from the vehicle manufacturing lines (Jaccard, 2013).
The water depletion of Toyota Motors is currently less than 3.8m3 per vehicles manufactured,
which has surpassed the average global goal of 4.4m3.
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Figure 3: Water Consumption
Source: (Gao & Low, 2014)
The Automotive giant is also reducing the carbon emissions from its logistics operations.
It has emphasized in maximising the cargo loads, improving the transport routes and switching to
alternative transport methods. It is evident that logistics operations around the globe has an
immerse influence on the environment and subsidise to global warming and air pollutions
through the emissions of materials of carbon (Heizer & Render, 2014). Toyota Motors has
achieved the efficacy of its land-based conveyance operations by merging its shipments with the
other businesses. The stated firm is optimising the shipping routes to decrease the trips and
maximising the cargo loads. In addition to this, additional transport method such as rail and ship
conveyance is also being progressively used. All these efforts made by Toyota Motors have
enabled it in reducing its total CO2 releases to 6.278 tons which has much lower than the global
average.
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Figure 4: CO2 emissions
Source: (Jaccard, 2013)
Triple bottom Line of Toyota Motors
The triple bottom line is one of the main structures which are presently being used by industry in
order to admittance the revenues which they are making through their business sustainability
explanations. The triple bottom line technique asks businesses to see outside the out-dated
bottom line which the trade processes make socially, environmentally and economically
(Kammel, 2015). Computing the business processes by Triple Bottom Line is one of the best
indicators of how sustainable the trade is and how rewarding it really is.
Figure 5: Triple Bottom Line
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Source: (Kammel, 2015)
Social sustainability
The social bottom line procedures the business profits in human capital, which comprise the
situation within the local society. Company’s bottom line upsurges by having reasonable and
advantageous labour performs and through corporate communal participation. Toyota is
vigorously engaging in social contribution actions in order to provision the sustainable expansion
of a flourishing society with the purpose of being a good corporate citizen ("Respect for the
Planet", 2015). Toyota delivers support primarily in the two areas, namely, the art and culture
sphere and the social sphere. Society and culture have been in the priority areas of Toyota for the
global social contribution activities.
Environmental Sustainability
The ecological sustainability of the Triple bottom line method summaries a view that the less
influences of the business and the fewer natural possessions a company consumes, the longer and
more positive the commercial would be. Governing the environmental bottom line means
handling, observing and broadcasting the intake of waste and emissions ("Respect for the
Planet", 2015). Everything from the Toyota’s basic posture to specific creativities is being put in
the place to bettering of the environment. The corporate social responsibility of Toyota measures
the business’s capability to be in the business indefinitely and its relation to the public and
influence to the economy.
Economic Sustainability
Economic sustainability in the triple bottom line is not simply putting the traditional corporate
capital to the ecological and human capital (Schaltegger & Wagner, 2006). The economic wealth
must be dignified in terms of how much it influence the industry has on the monetary
atmosphere.
Impact of Sustainability Issues
The balance between the people, planet and the profit, which is also known as triple bottom line,
is a part of eventual goals of sustainable expansion of many organisations and Toyota Motors is
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one of them. Sustainability, which is demarcated as the meeting of the current requirements of
the present without disturbing the future is normally applied in a project through approaches that
meet or achieve the stakeholder’s vision and prospects (Schaltegger & Wagner, 2006).
Sustainability goals and purposes are predictable to be met with an actual engagement of the
stakeholders with development dignified with the utilisation of some form of valuation tools.
Key environmental matters upsetting the business include the industrial waste,
sustainable expansion of raw resources and water and air releases. These matters disturb the
business of Toyota as laws require companies to change the apparatus and procedures to meet
the obligatory criterions which cost the commercial revenue ("Sustainability Report", 2014).
Toyota embarks on many strict methods in an effort to preserve the situation and to do the
business accordingly. Here are some of the environmental issues that affect the business
operations of Toyota Motors Corporation.
Waste: It is evident that during the automobiles manufacturing process, the procedures create
manufacturing waste ("Sustainability Report", 2015). Environmental laws and good ecological
citizenships forbid the indiscriminate throwing away of the manufacturing by-product, so it is
significant for Toyota to select how best to distribute with the industrial waste.
Sustainable expansion of raw resources: all automobile buildings use the raw resources to put
together their goods. When these raw materials are usual, laws and good ecological citizenship
want that the business takes important steps to replace what its uses.
Emissions: It is evident that manufacturing procedures produce air and water releases that
comprise the elements or chemical filled smoke that seep into the ground water through run-off.
Environmental fortification laws need business enterprise to defend the environment from
disclosure to these emissions ("Sustainability Report", 2015). All of these actions are costly to
the business initiatives and affect trades by declining its profit margins.
Any business sustainability initiative has to equalise the influence of three things: people,
planet and profit, which is also known as triple bottom line and it also outline the ecological
labours for many companies worldwide ("The Bottom Line on Sustainability", 2011). It is a fact
that green exercises are related to the amplified costs to the industries that get passed on to the
customers. But it also gets opposite sometimes. Improved efficiency, whether in energy usage,
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operational resources during the supply chain can often aid the associations to decrease the costs
and generating a more environmentally accountable business enterprise.
Current Sustainable Practices of Toyota
Toyota Believes that sustainability and corporate social responsibility are as important as
business profits. According to the managing director of Toyota, money is important as its feeds
the company’s CSR and sustainability initiatives. The company has its priority areas such as
education, sanitation, water environment and road safety (Thiele, 2016). The stated firm focus on
few areas and try to ensure that it does the things right. The company also aims in perfecting its
activities on a small scale and it is confident in scaling them.
Figure 6: Sustainability at Toyota
Source: (Werbach, 2009)
The Top of the Toyota Brand is supported by its products, which represents the
company’s commitment to deliver high standards of the quality to the customer’s total
requirements integrating the stakeholders. The operation team of the company is responsible and
dedicated to achieving success in turning out the quality cars. The products of the company
represent the quality that encompasses all its activities and it also helps the company to bring
sustainable product. It also operates Ecozone project that promotes biodiversity and nature.
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Toyota Motors Corporation also value its supply chain, dealers and suppliers and respect
the fundamentals of its relationships through teamwork and also pass on the Toyota values across
all its operations (Wu, Subramanian, Abdulrahman, Liu & Lai, 2015). Toyota practices customer
first approach by meeting the requirements of its customers. It also initiated a project named
‘Best in Town’ at its dealerships in order to bring excellence in its service and to meet its
changing customer expectation. In pursuit of enhancing the quality of life, the company aims in
building the safest car in the world with all the global standards (Wu, Subramanian,
Abdulrahman, Liu & Lai, 2015). The main thinking of the company is focused on sustainability.
A reactive approach is one where a business enterprise supports by giving donations of
compensation as a one-time solution in order to address the social issue. However, this is not
sustainability. A preventive approach aims in solving the societal needs by proactively taking
steps by eliminating the problems of developing the infrastructure such as school building. In
addition to this, a predictive approach is a sustainable approach where the main focus is on
education and behavioural aspects (Wu, Subramanian, Abdulrahman, Liu & Lai, 2015). Toyota
has started a program named ‘Behaviour Change Demonstration’ which is very successful. The
management of Toyota believes that predictive approach works best for the company. The
quality focus of the company enables them to apply the same principle of Kaizen or continuous
improvement in its sustainability practices. But the key challenge for Toyota is the way to
integrate the various elements of the above-outlined pyramid into its sustainability and CSR
activities.
The management of Toyota is also creating an Eco park to promote the Eco awareness
and would like to showcase all its stakeholders in its commitment to deal with the environmental
challenges. Toyota also places significant emphasis on looking at the stakeholders in its
sustainability journey. The stakeholders of the company are engaged in all the aspects of the
business. The company believes that good teamwork is the way to achieve the success (Zokaei,
2013). The company influence its dealers and suppliers through the way using the elements of
kaizen to help integrate the value chain. For Toyota, the quality of life is important and they
believe that quality of life could be improved through safety measures. The management of
Toyota Motors Corporation value safety and embedded its significance in everything it does.
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Suppliers and dealers of the company are trained to provide the safety training and safety
features of the company’s vehicles.
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Conclusion
It has been found in the study that Toyota Motors Corporation values its supply chain, dealers
and suppliers and respects the fundamentals of its relationships through teamwork and also pass
on the Toyota values across all its operations. Toyota practices customer first approach by
meeting the requirements of its customers. It also initiated a project named ‘Best in Town’ at its
dealerships in order to bring excellence in its service and to meet its changing customer
expectation. In pursuit of enhancing the quality of life, the company aims in building the safest
car in the world with all the global standards.
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