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....