rosbadiahnawipecs2012 121212032241-phpapp01

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THE 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 [email protected] , [email protected] Faculty of Technology Management & Technopreneurship Universiti Teknikal Malaysia Melaka (UTeM) Hang Tuah Jaya 76100 Durian Tunggal Melaka POWER AND ENERGY CONVERSION SYMPOSIUM (PECS) 2012

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Page 1: Rosbadiahnawipecs2012 121212032241-phpapp01

THE 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

[email protected] , [email protected]

Faculty of Technology Management & Technopreneurship

Universiti Teknikal Malaysia Melaka (UTeM)

Hang Tuah Jaya

76100 Durian Tunggal

Melaka

POWER AND ENERGY CONVERSION SYMPOSIUM

(PECS) 2012

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SECTION 1

INTRODUCTION

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PROBLEM STATEMENT

Scenarios now shows that many industries were trying to have

a good marketing strategy.

Green marketing is very important and has positive influences

on multiple participants in the economy.

The problem is, there are a few industry which do not know

how to enhance their corporate image.

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The Implementation of Green Marketing Strategyto Enhance Green Corporate Image :

A Case Study In UMW Toyota Motor Sdn. Bhd.

Research Question• To materialize the

enhancement of green corporate image of UMW Toyota Motor Sdn. Bhd. by using effective Green Marketing Strategy.

Research Objectivesi) To investigate the green

marketing strategy used by UMW Toyota Motor Sdn. Bhd.

ii) To identify the factors which determine the implementation of Green Marketing.

iii) To recommend the innovative Green Marketing Strategy (GMS) for company in enhancing the Green Corporate Image (GCI).

TOPIC

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Had choose UMW Toyota Motor Sdn. Bhd as place in conducting

research.

Focus on major element of green marketing strategy

introduced by 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

SCOPE

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LIMITATION

• Application of green marketing strategy being implemented at UMW Toyota Motor Sdn. Bhd. only.

• This implementation is to ensure this industry could enhance their green corporate image.

• The outcome of the research is only capable for UMW Toyota Motor Sdn. Bhd.

• The researcher also assumed that all respondents have provided honest and correct answer.

IMPORTANCE OF RESEARCH

• This research helps guidance and recommend the effective green marketing strategy to any firm which could enhance their green corporate image.

• People or organization will become more aware on the impact of environmental issues in our nation.

• Tagging with green corporate image can enhance the social status of a company.

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SECTION 2

LITERATURE REVIEW

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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)

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Major Factors Subfactors

1. Strategy Factors

1. Usage of strategy for organisational functionsa) 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)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).

Table : A decison making model : Accessing model need to be considered in a new strategy selection

Source : Kotler et al (20112) and Chew (2012)

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Major Factors Subfactors

1. Managerial factors

1. Managerial capabilitya) Ease of strategy usedb) Capability / strength / readiness of an

organisation to manage on strategy used in marketing.

c) Duration required to implement the strategy (Chew, 2012)

Table : A decison making model : Accessing model need to be considered in a new strategy selection

Source : Kotler et al (20112) and Chew (2012)

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Benefits of Green

Marketing

Environmental Benefit

Supply chain benefit

Production process benefit

Developing Economies

Consumer Benefits

Product Benefits

Strategic Benefits

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Solution for Green Marketing Barriers

Obtaining senior management and

marketing management focus

on the value and benefits of green

marketing

Overcoming customer

perceptions that green products are

less convenient

Educating customers that

environmentally friendly products need not be more

costly than conventional

products

Authenticity in green marketing

messages

Documenting and communicating green product

benefits

Ensuring green marketing

messages appeal to both the

emotional and rational sides of

customers

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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)

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Factors Description

1) Corporate• This internal approach is highlighted in various conceptual

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)

1) Individual• The influence that current and prior personal experiences

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

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Factors Description

Environment

al

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).

FACTORS THAT SHAPE THE CORPORATE IMAGE

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DIMENSIONS IN AFFECT THE CORPORATE IMAGE

Brand Loyalty

Perceived Quality

Brand Awareness

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The impact of green practice on marketing or sales function

Function Impact of Green Practice

Marketin

g or

Sales

Enhance consumer environmental awareness of green

products.

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)

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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.

The impact of green practice on marketing or sales function

(Source: Smith, et al., 2010)

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Factors

IndividualGreen Corporate

Image Corporate

Environment

Factors that contribute on corporate image formation

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SECTION 3RESEARCH

METHODOLOGY

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Research Design

Descriptive Studies

The main finding of this study is the

implementation in UMW Toyota Motor Sdn. Bhd

Included with innovative ideas on GMS to enhance

the Green Corporate Image (GCI).

The model which outline the Green Marketing Strategy on

enhancing the Green Corporate Image is setup.

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Mixed Method Research

Qualitative Quantitative•Interview session with manager & executive from marketing department to get expert opinion.

• To investigate the GMS used by company

•Used to answer the factors that determine the implementation of GMS.

•Answer the objective on recommending an innovative GMS for the company in enhancing GCI.

•Data were analysed statistically

Questionnaires was designed and being distribute to groups of employee in executive level to answer it.

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Primary Data

•Researcher may collect precisely the information needed.

•Information needed is related with the investigation on how the

GMS materializes the Corporate Green Image for UMW Toyota

Motor Sdn. Bhd

•Supported the whole progress of research.

•Surfed the formal website of Toyota, reading books, journal

and articles

Secondary Data

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Method of primary data collectiondistributing the questionnaires, which was made within the interview strategy

distributed to thirty respondents

questionnaires are delivered by hand andcollected it right after they are answering

Giving time to answer the question

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Rosbadiah Binti Mohd Nawi

Email : [email protected]

Linkedin: my.linkedin.com/in/rosbadiah

Boon Cheong ChewEmail : [email protected] : 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 management perspectives

THANK YOU