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The Impact of Environmental Issues on Toyota's Strategy

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  1. Toyota and environmental protection policy in Japan
    1. Background
    2. The Consequence of Environmental Tax
    3. Environmental Management System
  2. Toyota hybrid cars
    1. History of Hybrid
    2. Introduction to Hybrid Vehicles
    3. Hybrid Cars as a consumer product
    4. Prius, a new ecologist image
    5. Camry: no. 1 model for passenger cars
    6. Highlander: the new ecologist four-wheel drive
    7. Lexus: ?luxurious green?
  3. Marketing hybrid cars in Venezuela
    1. Introduction: The current situation in Venezuela for hybrid cars
    2. Development of Hybrid cars in the Venezuelan Market
    3. Market Target and Brand Positioning
    4. Marketing strategies for the introduction of hybrid cars
    5. Sales Promotions
    6. Media Strategy
    7. Public Relations
    8. Future

This thesis will seek to understand the controversial relationship between environmental factors and Toyota. Indeed, motor vehicle exhaust-emissions notably that of carbon monoxide pollution, is caused directly by the automobile industry. However, these negative impacts changed the position of the automobile industry when in the 70's the Japanese government started to react and apply regulations to reduce emissions. Toyota, like the other Japanese automobile manufacturers, began with agreeing to collaborate in protecting the environment, and today it has considerably developed the environmental aspect to a marketing tool, and a competitive advantage in the automobile industry.

It is a fact that today, environmentalists are eager to develop relationships to promote environmental causes, not via governments but with diverse firms. However, we will see in this thesis how Toyota managed to understand environmental problems, analyze them, develop their own strategy towards emission control, and how they applied these fundamental problems in management and competitive marketing strategies. Furthermore, this thesis will not analyze the philanthropic effort of Toyota but rather elaborate different commitments of environmental support under the company's operation systems. This thesis will be based on primary sources collected during the direct interview with the director of Toyota in Venezuela, Mr. Aranguren, and secondary sources based on published items, notably from internet sources and Toyota's 2005 social report. In addition, other sources are personal observations and experience, notably in Caracas. This work will be presented in three stages in order to understand how environmental issues dominate the company's worldwide strategies:
Part I- Presenting the background of Toyota's commitment for environmental support, in addition, to understanding to what extent the company has incorporated environmental issues into their management operation systems.
Part II- To explore Toyota's hybrid- vehicle product positioning, and target group consumers. Part III- We will present suggestions to the company, on how to promote hybrid models in Venezuela, an example of a country where environmental protectionism is undeveloped and hybrid cars cannot be found on the market.

The fundamental problem of this thesis will be to analyze how the environmental issue plays a symbolic part at TOYOTA, and how it affects the company in different domains, notably in management and marketing.

[...] On the other hand, the concept of luxury? incorporates consumer experience and perception into the luxury branding equation. Lexus cars can be defined as these two concepts of luxury since they offer top qualities, features and attributes but at the same time change the consumer's lifestyles and experience as they are able to possess and drive an environmentally friendly car. The price range of Lexus hybrid cars varies depending on the model, for example a RX model cost about US$ but a GS model can be worth US$ Lexus will probably stay as the premium brand for the company. [...]


[...] III- We will present suggestions to the company, on how to promote hybrid models in Venezuela, an example of a country where environmental protectionism is undeveloped and hybrid cars cannot be found on the market. The fundamental problem of this thesis will be to analyze how the environmental issue plays a symbolic part at TOYOTA, and how it affects the company in different domains, notably in management and marketing. Introduction Environmental protectionism issues are indispensable factors for the automobile industry in order to build strong support with consumers and governments. [...]


[...] Indeed, Toyota have succeeded in creating an image of ?political correctness? via Prius models and these trends are probably key to future success since environmental issues are becoming a necessity to the consumer's everyday lives. Camry: no model for passenger cars In the beginning Toyota launched the Camry in order to fulfill and satisfy the needs of middle class consumers who were seeking economic savings on gasoline. It is always essential to have an economic model to attract a more mass market oriented group, and the Camry models are sold because of these stereotypical images. [...]

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