Answer

Executive Summary

            Toyota Corporations and Honda Motors Limited are companies within the same industry and they both have their parent companies based in Japan. These companies despite being rivals, they operate mutually which can be attributed to the fact that the share a common origin. In addition to the above, the companies happens to have almost a common market which is North America, Europe, Asia and partly in Africa.  The companies have in place effective sustainability marketing steps which focuses on production while ensuring the environmental safety and the good interest of the stakeholders. Though Toyota seems to have a wider market cover on motors vehicles, which is only products, Honda Limited offers a variety of products including even services. In term of competition therefore, Honda out shines Toyota in terms of quality products while Toyota outshines Honda in terms of producing diverse products whose prices are pocket friendly. It is therefore factual that the future competitive ability of these companies to a great extent relies on sustainability marketing and creativity.

Table of Contents

Executive Summary. 2

Introduction. 4

Sustainability marketing in Toyota Limited Company. 5

Company Profile. 5

Marketing of the Company’s Products. 7

Implementation of Sustainability Marketing Strategies. 8

Customers’ Value Marketing Strategy. 8

Environmental Value Strategy. 9

Societal Value Strategy. 10

Innovative/ Creative Marketing Strategy. 10

Sustainability marketing in Honda Limited Company. 11

Company Profile. 11

The Specific Business Description. 12

Sustainability marketing. 12

Strategic Planning. 13

Focus on the Society. 13

Providing to the Market Environment Friendly Energy Source. 14

Evaluation of the Stakeholders Matrix. 15

Comparison of the Consumers Perceptions on Honda and Toyota Products. 16

Conclusion. 17

References. 18

Appendix. 19

Introduction

Sustainability marketing is the process through which the needs of the current needs of the customers are met, without compromising the needs of the posterity. According to Kheiry, Mirabi and Mousavian (2014), this concept though new in the marketing world, it has proven to be a perfect path through which competitive advantage can be gotten. It is for this reason that most marketers as well as managers, have turned their full focus on this concept. This concept which at times is used interchangeably with the term ‘’green marketing’’ focuses on both the environmental factors as well as the social factors in achieving its marketing strategy. The concept of green marketing has been adopted in the corporate world, in a bit to counteract the criticisms that have come from the general public for many years (McDonagh& Prothero, 2014).  The criticisms have been touching on the misleading advertisements and exorbitant prices, some of which are not in agreement with the quoted prices during promotion of the subject products. It is worth to note that sustainability marketing though a current trend, the latest amendments on the legislations governing business operations, advocates for it.

In the past sustainability operations ware taken to be an ethical issue. Hence business organizations were given liberty to devise ways through sustainability would be achieved in all the functional departments. According to McDonagh and Prothero (2014), while some of organizations tried their level best to achieve this objective, through the concept of Corporate Social Responsibilities (CSR), others evaded it due to cost implications. This ,therefore, forced the authorities monitoring business operations to come up with legislations on this critical concept. Sustainability is achievable through five main strategies namely; clients’/ customers’ value marketing, creative/innovative marketing, consumer-based (oriented) marketing, society based (societal) marketing and mission mind (mission sense) marketing. While these strategies are applied by most organizations that practice sustainability marketing, they are not the only strategies that exist (Long, Patrick & Varey, 2015). It is therefore upon the business organization to come up with the strategies that meet the need of the business and other stakeholders.  This paper focuses on sustainability marketing for Honda and Toyota Limited Companies.

Sustainability marketing in Toyota Limited Company

Company Profile

Toyota Motor Corporation is a multinational automotive manufacturing company originating from Japan. The company whose parent company is located in the city of Tokyo has been in existence since 1937 (Toyota Motor Corporation SWOT Analysis, 2017). The core business activity of the company is vehicle production and sales. Based on the quality of this company’s products, it has customers in almost all the major markets in the globe. One of the main strengths of this company is innovation and creativity. This has been enhanced majorly due to the market research and development (R and D) initiatives that the company has. R and D is done both in the potential and current market segments. The company has large assembly points in all the countries in which it operates. Besides this, the company takes advantage of the tour visits by the potential and current customers, to show case some of its new products in the market. Besides this, the company has museums (show rooms) which is open to the public. This has helped a great deal in popularizing the company’s products. Currently the market cover for Toyota Corporation in the global market is as shown in diagram 1 below;

Diagram 1. Toyota Corporation Market Segmentation

Source: Author (2017)

From the graph, is evident that the company’s products are sold in almost all the major continents in the world with more concentration in Japan and North America.  It is worth to note that in all these market segments, the company implements the sustainability marketing strategy universally.

Marketing of the Company’s Products

            Toyota Corporation faces very stiff competition from other manufacturers of motor vehicles in the global market (Toyota Motor Corporation, 2017). This has obliged the company managers to come up with proper strategies through which it can counteract this stiff competition. The company therefore employs four major strategies in an effort to gain the required competitive advantage as shown in the diagram below;

Diagram 2. Toyota Corporation Marketing Strategy

Source: Author (2017)

Implementation of Sustainability Marketing Strategies

Since its conception in the year 1937, Toyota’s vision has been anchored on sustainability. The company has a long term goal of o manufacturing world class vehicles that meets the current need of sustainable human development through innovation. In its activities therefore, the company focuses on the society from which it draws its stakeholders as well as the environment from which it draws its raw material (Toyota Motor Corporation SWOT Analysis, 2017). According to Quoquab and Mohammad (2016), marketing being on the most active functional departments, the concept of sustainability is promoted here fully. Toyota Corporation uses the following strategies in achieving the concept of sustainability marketing;

Customers’ Value Marketing Strategy

The company values their clients and endeavors to meet their expectation through provision of quality products. According to Toyota Corporation quality refers to the ability of a particular product to meet the exact need of the targeted customer. In order to know the customer’s expectations and desires, the company does regular research and development. Other than provision of quality products, the company charges a penetrative price for its products. According to the recent survey, Toyota products is one of the most pocket friendly (Toyota Motor Corporation, 2017). It is based on this that the company enjoys a huge command of customers in the global market. The company has an effective means of getting feedback from the customers which makes it to be able to make predictions on the future demand. Besides this, the company has an internal policy that strictly prohibits any of its stakeholders in engaging in engagements that violates the customers rights.

Environmental Value Strategy

            The company appreciates that the environment is very critical for the survival of the society from which it draws its customers. The company’s environmental conservation measures are derived from the overall global vision on environmental sustainability measures. Based on this therefore the company purposes to sell safe and hygienic products that enhances the living style of human beings. In order to ensure that there is little or no environmental pollution from the company’s products, proper usage of materials and disposal of the waste products are done at all the life cycle stages of the company’s products (Toyota Motor Corporation, 2017).  Through its internal strategies, the company promotes strict adherence to the International environmental Conservation standards. This is achieved by a regular internal and external audits on safe environmental production practice. The company promotes the concept of utmost environmental stewardship to its dealers, suppliers, agents among others. This objective is propelled by a slogan known as ‘’ building of vehicles that are environmental friendly’’. Toyota Corporation has an environmental action plan which is promoted in all the branches across the globe.

            Part of the company’s research and Development is production of vehicles that are emit less harmful products to the environment. In the year 2013 for instance, the Corporation invented Toyota Pius which as very minimal tail pipe emissions. Though collaboration with BMW, the company is researching on manufacturing of vehicles that use hydrogen as fuel as opposed to carbon based fuels which promote global warming. This project is known as ‘’ Toyota green initiatives.”

Societal Value Strategy

            As has been mentioned, Toyota Corporation treats with great care, the society from which it draws its stakeholders. The company therefore purposes to produce vehicles that guarantee safety to the passengers on board as well as the drivers. In addition to this company offers safety trainings to their consumers (Toyota Motor Corporation SWOT Analysis, 2017).This is achieved through provision of quality vehicles. The company gives to the society through sponsoring of sporting activities, provision of robotics among others. The Company caters for the interest of all its stakeholders as shown in the diagram below;

As shown in figure 1 in the appendix, the shareholders are all treated by the fairness required professionally. It is worth to note that these stakeholders are directly depended on, in achieving the objective of sustainability marketing. Due to stiff competition, the company must ensure that it counters the reaction from the competitors through product promotion and advertising. This channel is also used in explaining the various innovations in the company that customers may not be aware of. In doing this however, the company maintains a high code of conducts by ensuring that strictly what is in the product is brought to the ears of the targeted customers.

 Innovative/ Creative Marketing Strategy

            Creativity or innovation is the process through which one comes up with a unique service or product that is meant to enhance the quality of the services and products sold. Creativity is one of the best ways through which market advantage is gained (Rettie, Burchell & Riley, 2012). Creativity can either involve coming up with a totally new product in the market or it can involve mimicking the one which has been producing with an aim of outdoing the current service and products seller in the market. The in which Toyota Corporations operates, is very competitive (Toyota Motor Corporation SWOT Analysis, 2017). Besides this, the industry is also dynamic and competitive as consumers keep changing their tastes and preferences as the time moves. Other than meeting the desires of the customers Toyota corporations uses creativity and innovation in achieving the sustainability marketing goals. For instance, most products of the company (motor vehicles are packed in biodegradable) materials.

Other than safe packaging the company uses television, online and neon bill boards when doing advertisements.   All these are means to promote the objective of the company in relation to marketing sustainability. With introduction of motor vehicle with low exhaust pipe emissions the company is believed to have taken a stride towards realizing the objective of sustainability marketing.

Sustainability marketing in Honda Limited Company

Company Profile

Honda Motor Company Limited is an automotive company that operates majorly in Asia and North America. However, the company’s products are sold in the global market. This company has been in the motor automobile industry since 1948. The company has major assembly points in North America and Asia though the parent company is situated in Tokyo Japan (Honda Motor Co., Ltd. SWOT Analysis, 2017).Honda Motors manufactures a range of products which include; motorcycle, vehicles, financial services and other products which are consumed complimentarily with the motor products (motor accessories). The engines manufactured by Honda Limited are said to be one of the best in the market due to its large displacement of between 50 centimeters and 1800 centimeters. The company’s gasoline products uses, three, four and five cylinders for engines. Other than this the company has a gasoline hybrid and gasoline-electric products (Honda Motor Co., Ltd. SWOT Analysis, 2017). The financial services is offered by the company majorly in Brazil, United Kingdom, and Japan among other major countries.

The Specific Business Description

            Honda Motor Limited offers both products. While the motor products are sold across the globe, financial services are only in Europe, Asia, South and North American continents. The Company has subsidiaries in 368 countries across the globe, with major affiliations in 83 countries (Honda Motor Co., Ltd. SWOT Analysis, 2017). The Company’s sells more than 800,000 units of motor products annually which is the reason behind its drastic growth as shown in as shown in figure 2 at the appendix. The company works in collaboration with other support businesses as well as the competitors with an aim of providing quality products to its customers while upholding the sustainability objective. In May 2016 for instance the company signed an MOU with Toyota Limited Corporation to do research jointly on production of hydrogen based fuel. Other organizations that the company has signed an MOU with include Development Bank of Japan, Nissan Limited, Tokyo gas, Toho gas among others.

Sustainability marketing

            Just like in the case of Toyota Corporation, Honda Limited approaches the concept of sustainability through the angle of inclusivity and stakeholders’ management. Scholars have not agreed on the universal definition of sustainability. However, the point of agreement is that this concepts entails the social factors, the environmental factors and good governance within the company. Honda Limited approaches the concept of sustainability marketing from this perspective. It is worth to note that sustainability therefore entails therefore, investment in the lives of the various stakeholders of an organization. The Company has sustainability market concept enshrined within its operational policies. The following are some of strategies used by the company in achieving sustainability marketing.

Strategic Planning

            In line with the Sustainable Development Goals (SDGs), the company has strategic goals that it works towards achieving by 2020 and by 2030 respectively. The Company is employing its full technology towards bringing into the market safe products that can guarantee safety to both the drivers as well as the passengers. This objective the company intends to achieve by 2020. Due to emergence of many producers of automobiles, safety and security of the operators of these devices as well as the safety of the people on board has been at stake (Honda Motor Co., Ltd. SWOT Analysis, 2017) It is in line with this that the company is researched and started selling of Honda Jet which is intended to enhance safety for space traveling. As was mentioned earlier, the company treasures the society from which it draws its stakeholders. This is the main force behind their propulsion to produce safe products for the current and potential consumers.

            Honda Motors believes on a corporate or whole movement. This is the anchor of the slogan that the company uses which is ‘’the power of our dreams.’’  The company’s strategies in relation to sustainability touches on the society, the employees and the environment as explained below;

Focus on the Society

            Society is a group of people living in a particular area and with certain belief and expectations. Honda Limited Company being a multinational organization, it has multiple societies with diverse expectations that must be met universally (Rothfeder, 2014). The company in its effort to provide a good societal relationship, focuses not only on where it is headed but also on the far that it has come as a result of its good relationship with the society (Honda Motor Co., Ltd. SWOT Analysis, 2017) According to the organization, the joy of the society is their joy since their clients who are the main reason for the operations, come from the society. In selling their products, the company targets improving the lifestyles of the society at large. This has been achieved through provision of quality products and services to the clients.

            The global vehicles market is one of the most competitive markets despite it being dominated by products from Japan. Based on this, some of the competitors have resorted to misleading advertisement and exploitation of the customers through high prices charges. The company however, has maintained integrity in terms of advertisement. None the less Honda’s products prices still do not fall within the bracket of the universal bracket in the market. The company has a proper channel of receiving feedback from its clients.  In all its subsidiaries as well as in the major affiliated companies, there are major customer care centers where concerns are received and responded to appropriately. In the event that the officers at the customers’ care are not able to resolve the subject problem, then it is escalated to the experts at the main offices.

            The system for managing and caring for the customers is sophisticated which is the reason for its efficiency.  This a clear indication of that the company is committed towards serving the interest of its diverse society. The fact that the society’s expectations keep evolving has never been a deterrent for the company (Honda Motor Co., Ltd. SWOT Analysis, 2017). This could be the reason behind having an unprecedented customer loyalty from certain segments of its market, despite the prices of the company’s products being perceived to be higher than other products which are substitutionary.

Providing to the Market Environment Friendly Energy Source

            Based on their quality, Honda products are perceived to be more expensive in terms of fuel consumption. As mentioned earlier, though the company sells both financial services as well as products, the ones that is universally consumed across the globe are motor products such as motor cycle, generators, and motor vehicles among others’. Complimentarily, motor based products are consumed with fuel.  Though various companies are researching on ways through which fuel consumption can be replaced with electricity consumption to propel engines, this will still not be pocket friendly as per the market research that was carried by Honda Limited. As a result of this research, the company signed a MOU together with Toyota Corporations on researching on hydrogen based fuel. This fuel is intended to achieve to main objectives namely reduction of the environmental degradation through emission of non-combusted carbon products and meeting the needs of customers through provision of cheap fuel.

Evaluation of the Stakeholders Matrix

            This is a unique way through which Honda Limited Company manages its stakeholders both in the short-term and long term. As was stated earlier marketing and sustainability thereof takes into consideration the interest of all the stakeholders in an organization. It is for this reason that they are put in this matrix to ensure that no preferential treatment is given to one party at the expense of the other one. Material matrix is typically implemented by the organization in two phases which include; identifying the issue to be solved then categorizing it appropriately within the matrix. This matrix has been developed in line with the Sustainable Development Goals (SDGs). The matrix focuses on four major areas namely environmental conservation, ensuring safety of employees (Occupational Safety), appropriate response to climatic change and improving technological advancement required in mobility.

Comparison of the Consumers Perceptions on Honda and Toyota Products

            Honda and Toyota Limited Companies are rival companies despite their mutual operations. Their mutual operations can be attributed to the fact that they both originate from one country. This could therefore mean that the agreements that they are signing are geared towards ensuring they have the largest market cover as oligopoly. According to the recent survey concerning the products of these two companies, consumers gave varied opinions. In certain segments such as in the continent of Africa, preference was given to Toyota due to the pocket friendly prices it charge, the variety it has and the availability of its accessories. Honda products however, are majorly consumed in North America and Europe (first world countries). According to the opinions that were given concerning Honda products, these products are still preferred despite their perceived cost.

            The main reason behind preference of these products despite their cots is due to the fact that these products are of great quality.  In comparison, Honda motors are treated to be goods of ostentation or giffen goods while Toyota Limited Company’s good are normal goods, having normal demand curves. It is worth to note that in motorcycles and generators sales Honda Yamaha does well as well.

Predictions of the Companies’ Relative Long Term Competitiveness

            Toyota Corporation unlike Honda Yamaha has majored in production of vehicles only. This could be the reason behind its wider market cover. Honda on the other hand produces diverse products which helps a great deal in diversifying risks. Based on the varieties and price charge Toyota products seems to have a slightly brighter future. However, Honda on the other hand has a variety of products which helps it to diversify risks. Besides this, Honda is perceived to be having more quality products as compared to Toyota. Based on this it is possible to predict a neck to neck competition between these two companies. As none is put at advantaged position.

                                                          Conclusion

            Based on the above analysis, it possible to conclude that these two companies have a potential of forming an oligopoly hence baring other competitors in the market.  However, this will be possible only if the sustainability marketing strategies are embraced by the leadership of the two companies. A look at the companies has revealed that the stakeholders have played a major role in bringing the companies to where they are currently. Since the global market in which these companies operates happens to be very dynamic, the input of the stakeholders is critical for sustainability both in terms of management and in the marketing department. The following recommendations can also help the companies in remaining at the market helm;

1. Get the opinions of the customers on the benefits they can spot on the sustainability marketing.
2. Use the customers’ opinion to enhance service provision and innovation.
3. Perform a regular internal and external audit on effectiveness of the sustainability marketing employed.