SUSTAINABLE MARKETING Sustainable marketing calls for socially and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
Sustainable marketing calls for socially and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. On other hand the marketing concept means meeting the current needs of both customers and company. But that can sometimes mean compromising the future of both.
Strategic planning concept
Societal marketing concept
Sustainable marketing concept
Needs of Business
Green Marketing is promoting where the issues of non-renewable assets, pollution,waste, and other “ecological” parts of the CSR circle is predominant, yet additionally the more socially green viewpoint, such as preventing loss of species and exploiting environments for specific creatures. Green Marketing is making business while decreasing damage to the earth. Sustainable Marketing is the demonstration of joining every one of the 3 circle of sustainability (Environment, Business, Social) and ensuring your item offering, support to-support, is agreeable both for nature, the laborers and the business.
Green Marketing + Social Marketing = Sustainability Marketing.
SUSTAINABLE MRKETING PRINCIPLES
1. Consumer-oriented marketing – It means that the company should view and organize its marketing activities from the consumers point of view. It should work hard to sense, serve and satisfy the needs of a defined group of customers both now and in the future.
2. Customer value marketing – According to the principle of customer value marketing, the company should put most of its resources into customer value-building marketing investments. Customer value marketing calls for building long run consumer engagement, loyalty and relationships by continually improving the value consumers received from the firm’s market offering. By creating value for consumers, the company can capture value from the customers in return.
3. Innovative marketing – The principal of innovative marketing requires the company continuously seek real product and marketing improvements. The company that overlooks new and better way to do things will eventually lose customers to another company that has found a better way. Innovative marketers never stop looking for the new and the better way to create customer value.
4. Sense-of-mission marketing – It means that the company should define its mission in broad social terms rather than marrow product terms. when a company defines a social mission employees feel better about the work and have a clear sense of direction brands linked with broader mission can serve the best long run interest of both the brands and the consumers.
5. Societal marketing – Principle of societal marketing says a company makes marketing decisions by considering consumers want the company’s requirement consumer’s long run interest and society long run interest companies should be aware that neglecting consumer and societal long run interest is a disservice to consumer and society.
Societal Classification of Products:
Brand for study – PepsiCo
1. Soft drink – Pepsi, 7up, Dukes, Mirinda Mountain dew, Nimbooz, Slice
2. Health Drink – Tropicana
3. Mineral Water – Aquafine
4. Sports Drink- Gatorade
5. Snacks – Cheetos, Kurkure, Lays, Lehar, Uncle Chipps
6. Breakfast Cereal – Quaker oats
Being second from Coca Cola in soft drink PepsiCo has expanded in snacks segment. As Coca-Cola is only present in beverage so PepsiCo is taking advantage and profit by increasing its market in snacks segment and it we can be seen huge demand in this segment which provide huge profit to the PepsiCo.
PepsiCo is in an industry which is commanded by the two big companies i.e. Coca cola and Pepsi. In a war between Coca cola and Pepsi, neither of the brands can win on the off chance that they enter a price war. This is on the grounds that the expense of manufacturing and transportation is tremendous. In this way, these organizations are probably going to enter a brand war instead of enter a price war.
PepsiCo is referred to give special limits and in addition limits on bulk purchasing. For customers, as the size of bottle increases, discount also increases. In this way a 2 liter bottle of Pepsi will be moderately less expensive per 100ml when compared with a 250 ml pack. For wholesalers, the discount depends on the amount and in addition the payment terms. The better the payment terms or the higher the amount, the more is the discount given in this way keeping the wholesaler motivated.
The distribution channel of PepsiCo is as following –
1. Company ; Distributor ; Small retailers/Small purchasers ; End client
2. Company ; Bulk purchasers ; End client
As expense is spared in the second precedent, organizations can give better edges to Bulk purchasers. The significant test in appropriation is the expense of packaging and in addition the expense of transportation. In India, Pepsi has 36 packaging plants out of which 13 are franchisees while 23 are organization possessed.
A few of PepsiCo soft drink wholesalers themselves may go as merchants of Kurkure, Lays and different snacks items as the distribution is through a similar channel. The items are likewise sold from the same store. In this manner, it is appropriate if distributor of soft drink also have authority for snacks as well.
One of the most grounded reason PepsiCo holds its image picture is its promotions. Pepsi targets mostly youths through different Brand ambassadors. In India, the brand ambassadors have been the big names from film industry and sports like Amitabh Bacchan, Ranbir kapoor, Sachin Tendulkar, M S Dhoni and others.
Mountain dew has a message of “Darr ke aage jeet hai” which is again focused on adventure sports thereby targeting youngsters. Kurkure is known to target middle aged people and youngsters though Lays. Gatorade targets just sports as it is a sports drink. Also, Quaker oats is new launch in cereal segment foe breakfast with the twist of spices. Alongside traditional media channels, at the time of purchase PepsiCo uses trade promotions and sales promotions. Limits and bundling are continually being packaged to give the best mix and incentive to the client to expand buys and in addition the brand value.
Sustainability Strategy of PepsiCo
“Our license to operate depends on achieving sustainability.” said Dr. Mehmood Khan, PepsiCo’s Vice Chairman and chief Scientific Officer, Global Research and Development.
Journey of Sustainability of PepsiCo
1998 PepsiCo acquires Tropicana
2001 Quaker oats and Gatorade join the PepsiCo family, adding to our portfolio of iconic brands
2006 Performance with Purpose is introduced by CEO, Indra Nooyi, to position PepsiCo for long-term success and ingraining sustainability into our daily business operations
2007 PepsiCo invests in growing our nutrition business with the acquisition of Naked Juice Company
2008 The PepsiCo Foundation becomes the first supporters of Water.org’s WaterCredit program
2009 Launch of Food for Good, a program that makes nutrition foods more accessible to low-income children. PepsiCo joins Healthy Weight Commitment Foundation to help reduce obesity in the U.S.
2010 PepsiCo announces intent to acquire Wimm-Bill-Dann, Russia’s leading branded food and Beverage Company and leader in dairy and juice.
2013 PepsiCo launches the Sustainable Farming Initiative(SFI), now known as Sustainable Farming Program(SPF), that aims to improve crop yields and growers livelihoods, increase environmentally responsible practices and advance respect for workers human rights.
2015 PepsiCo reaches initial goal of providing safe water access to more than six miilion people.
2016 PepsiCo introduces Performance with Purpose 2025 Agenda.
2017 PepsiCo named to Ethisphere Institutes list of the World’s Most Ethical Companies and Fortune’s World’s most Admired Companies for the 11th and 12th years, respectively.
Sustainable practices followed by PepsiCo
1. Performance with Purpose 2025 – It was launched in year of 2016 with some goals which PepsiCo tend to achieve by 2025. This project of PepsiCo focus on 3 major factor i.e. Products, Planet and People.
Products – By the end of year 2017 PepsiCo has 43% of beverage portfolio volume with less than or equal to 100 calories from added sugars per 12-Ounce serving and by the year of 2025 PepsiCo is targeting 67%. From last 2 year it has been increase as it was 39% nad 40% in year 2015 and 2016 respectively.
55% of foods portfolio volume with