POWER AND ENERGY CONVERSION SYMPOSIUM (PECS) 2012THE IMPLEMENTATION OF GREEN MARKETING STRATEGY TO ENHANCE GREEN CORPORATE IMAGE : A Case Study in UMW Toyota Motor Sdn. Bhd. Rosbadiah Mohd Nawi and Boon Cheong Chew firstname.lastname@example.org , email@example.com Faculty of Technology Management & Technopreneurship Universiti Teknikal Malaysia Melaka (UTeM) Hang Tuah Jaya 76100 Durian Tunggal Melaka
PROBLEM STATEMENTScenarios now shows that many industries were trying to havea good marketing strategy.The problem is, there are a few industry which do not knowhow to enhance their corporate image.Green marketing is very important and has positive influenceson multiple participants in the economy.
The Implementation of Green Marketing StrategyTOPIC to Enhance Green Corporate Image : A Case Study In UMW Toyota Motor Sdn. Bhd. Research Question Research Objectives• To materialize the i) To investigate the green marketing strategy used by enhancement of green UMW Toyota Motor Sdn. corporate image of UMW Bhd. Toyota Motor Sdn. Bhd. by ii) To identify the factors which using effective Green determine the implementation of Green Marketing Strategy. Marketing. iii) To recommend the innovative Green Marketing Strategy (GMS) for company in enhancing the Green Corporate Image (GCI).
SCOPEHad choose UMW Toyota Motor Sdn. Bhd as place in conductingresearch. Focus on major element of green marketing strategy introducedby Dahlstrom (2011). 1) product strategy 2) place strategy 3) price strategy 4) promotion strategy• Employees of UMW Toyota Motor Sdn. Bhd. act as respondents 1) executives from middle management level 2) user level which consist of executive and technician level Mixed methods
IMPORTANCE OF LIMITATION RESEARCH• Application of green marketing • This research helps strategy being implemented at guidance and recommend UMW Toyota Motor Sdn. Bhd. the effective green only. marketing strategy to any• This implementation is to firm which could enhance ensure this industry could their green corporate enhance their green corporate image. image.• The outcome of the research is • People or organization will only capable for UMW Toyota become more aware on the Motor Sdn. Bhd. impact of environmental• The researcher also assumed issues in our nation. that all respondents have • Tagging with green provided honest and correct corporate image can answer. enhance the social status of a company.
GREEN MARKETING• Green marketing is the study of all efforts to consume, produce, distribute, promote, package, and reclaim products in manner that is sensitive or responsive to ecological concern (Dahlstrom ,2011)• Product development, production and the supply chain have the potential to achieve higher levels of tripple bottm line performance via green marketing (Dahlstrom ,2011)
Table : A decison making model : Accessing model need to be considered in anew strategy selection Major Factors Subfactors 1. Usage of strategy for organisational functions a) Product strategy There are a few consideration that need to be focus when placing a product in market. These includes : Product life-cycle, product competition, product mix, product design, new product and product audit. (Paley, 2000) 1. Strategy Factors a) Promotion strategy Promotion mix refers to combination of different kinds of promotion tools used by a firm to sell it product and services. The main six promotion tools are : Personal selling, advertising, sales promotion, publicity and public relation, direct marketing (Paley, 2000).Source : Kotler et al (20112) and Chew (2012)
Table : A decison making model : Accessing model need to be considered in a new strategy selection Major Factors Subfactors 1. Managerial 1. Managerial capability factors a) Ease of strategy used b) Capability / strength / readiness of an organisation to manage on strategy used in marketing. c) Duration required to implement the strategy (Chew, 2012)Source : Kotler et al (20112) and Chew (2012)
Supply chain Environmental benefit BenefitProduction Benefits of Developing process Green Economies benefit Marketing Product Consumer Benefits Benefits Strategic Benefits
Solution for Green Marketing BarriersObtaining senior Educatingmanagement and Documenting and customers thatmarketing communicating environmentallymanagement focus green product friendly productson the value and benefits need not be morebenefits of green costly thanmarketing conventional products Overcoming Authenticity in Ensuring green customer green marketing marketing perceptions that messages messages appeal togreen products are both the emotional less convenient and rational sides of customers
CORPORATE IMAGE• the perceived sum of the entire organization, its objectives and plans. The corporate image comprises all the visual, verbal and behavioural elements that make up the organization.• The important of corporate image is to differentiate itself from competition world of deteriorating brand power rising perceptions. It is also to create recognized added-value to the products and services to prosper in an increasingly competitive and constantly changing global marketplace. (Sharma, 2009)
FACTORS THAT SHAPE THE CORPORATE IMAGE Factors Description • This internal approach is highlighted in various conceptual1) Corporate models on corporate image formation, where the company itself is seen as the main factor that shapes the stakeholder’ image of the organisation. (Lopez, 2011) • The influence that current and prior personal experiences1) Individual with the company (through its products, customer-facing personnel, etc.) have in determining corporate image. The receiver‟s own economic, social and personal background may influence the assessment of such experiences and, hence, may influence corporate image formation (Lopez, 2011).
FACTORS THAT SHAPE THE CORPORATE IMAGE Factors DescriptionEnvironmental Focusing on the conceptualisation of the environment construct, environmental influences consist of external factors like competitors, the industry and the sector. (Balmer and Gray, 2000; Balmer,2001) describes the environment as consisting of five forces, namely political, economic, ethical, social and technological (Lopez, 2011).
DIMENSIONS IN AFFECT THE CORPORATE IMAGE Brand Brand Loyalty Awareness Perceived Quality
The impact of green practice on marketing or sales functionFunction Impact of Green PracticeMarketing Enhance consumer environmental awareness of green products.or Sales Satisfy customer needs for green products or provide products in a green manner to ensure business credibility. Obtain a green reputation and brand image and attract a new and larger client base. Create a balance between higher sales and proﬁts. Gain public approval and cut costs by using green marketing. Eliminate pollution and reduce green gas emission to open new markets.(Source: Smith, et al., 2010)
The impact of green practice on marketing or sales function Function Impact of Green PracticeMarketing or Sales Use green issues to sell new lifestyles and ideas. Advertise green initiatives eﬀ ectively to acquire a greater market share. Include green business practices in overall corporate message to attract new customers. Choose packaging material with minimal impact on the environment. Use resource preservation and environmentally friendly strategies in all stages of the value chain.(Source: Smith, et al., 2010)
Factors that contribute on corporate image formation Factors Individual Green Corporate Image Corporate Environment
Research DesignDescriptive StudiesThe main finding of this study is theimplementation in UMW Toyota Motor Sdn. BhdIncluded with innovative ideas on GMS to enhancethe Green Corporate Image (GCI).The model which outline the Green Marketing Strategy onenhancing the Green Corporate Image is setup.
Mixed Method Research Qualitative Quantitative •Interview session with •Used to answer the factors manager & executive that determine the implementation of GMS. from marketing department to get expert •Answer the objective on opinion. recommending an innovative GMS for the company in • To investigate the GMS enhancing GCI. used by company •Data were analysed statisticallyQuestionnaires was designedand being distribute to groupsof employee in executive level toanswer it.
Primary Data•Researcher may collect precisely the information needed.•Information needed is related with the investigation on how theGMS materializes the Corporate Green Image for UMW ToyotaMotor Sdn. Bhd Secondary Data• Supported the whole progress of research.• Surfed the formal website of Toyota, reading books, journal and articles
Method of primary data collectiondistributing the questionnaires, which wasmade within the interview strategy distributed to thirty respondentsquestionnaires are delivered by hand andcollected it right after they are answering Giving time to answer the question
THANK YOU Rosbadiah Binti Mohd Nawi Email : firstname.lastname@example.org Linkedin: my.linkedin.com/in/rosbadiahBoon Cheong ChewEmail : email@example.comLinkedin : http://www.linkedin.com/in/bcchewGoogle BCChew for his workBCChew’s primary research interest:Renewable Energy Development & DeploymentClean Technologies Innovation and ImplementationGreen and Sustainability PracticesAll of them are angled from social science and managementperspectives