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The environmental marketing strategies of starkist tuna, focusing on the 5ps of marketing: person (consumer), product, price, place (marketing channels), and promotion. Topics include consumer concerns, regulatory actions, organic industry sales, and eco-labeling. Dynamic considerations such as strategic interaction with competition, product lifecycle, and changing environment are also discussed.
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] Person (Consumer) ] Product ] Price ] Place (marketing channels) ] Promotion Dynamic considerations ] Strategic interaction with competition ] Product Lifecycle ] Barriers against imitation ] Changing environment (consumer, regulatory, technological, macroeconomic etc)
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Environmental concern is a new competitive dimension due to:
] 87% of U.S. adults are concerned about the condition of the natural environment (Phillips, 1999) ] 50% of Americans claim to look for environmental labels and to switch brands based on environment-friendliness (Phillips, 1999). ] Sales of Green products are rising \ Organic industry sales from $1B to $50B (annual growth rate 10%, while all other food categories are stagnant or dropping \ Green products as % of new introductions (3%-12%) ] Americans say they are willing to pay for environmental improvement ($0.25/gallon of clean gasoline (60%)!, 5% or more for renewable electricity(48%). ] There is a difference between statements and actual behavior; facts and perceptions
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Erica Sagon ,The Arizona Republic, Mar. 14, 2006 06:32 PM
] Wal-Mart's aisles are growing greener as it doubles the number of organic grocery products it sells and launches its own line of baby clothes made with organic cotton. Demand for healthy-lifestyle products is changing the product mix at the world's largest retailer and spurring competition at both supermarkets and specialty grocers. Industry watchers say organic groceries are gaining appeal with budget-conscious and affluent shoppers alike. Wal-Mart has already gone head-to-head with traditional supermarkets to become the top grocery seller. Now it is looking to tackle the estimated $50 billion natural-products industry. The retail giant will stock more than 400 organic products at its Supercenters and Neighborhood Markets beginning in a few weeks. New items will be added to all categories of food from dry goods to produce, but the number of items sold at each store will vary. George Baby, the line of organic cotton infant clothes, will follow in June.
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] True-blue Greens \ Environmental activist, leader, strong personal concerns about environment, faith in individual action \ Subtypes: Planet passionates, Health fanatics, Animal lovers ] Greenback Greens \ Green commitment expressed through willingness to pay for environmental goods and causes. Not likely to be actively involved in time consuming environmental activities. Likely to recycle.
] Sprouts \ Swing group. May participate in select green activities. Will look for green products, but buy only if prices are not higher, will recycle
] Grousers \ Don’t believe that individuals can play a role in environmental protection, which is responsibility of corporations and government. Misinformed. Lax environmental behavior. Complain and make excuses
] Basic Browns \ Not tuned to environmental issues at all. They don’t make excuses. They think environmental issues are not important.
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] Greener than green, green, light green, un- green ] Visionary greens, may be greens, Hardcore browns ] Dedicated, selective, Impulsive ] Activists(15%), community enthusiasts(8%), Mainstream followers(21%), Hostile conservatives(13%), disillusioned survivors(14%) , Privileged bystanders (8%)
\ New products for informed green consumer \ Goal is to get a price premium \ Target:TBGs and Greenback Greens
\ Established brand products with added green characteristics/claims \ Goal is to increase/protect market share \ Likely cannibalization of existing products \ Target: Sprouts
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] Raw Materials: Sustainably harvested, petroleum free, all natural, plant based ] Manufacturing: Non-polluting, unbleached, pesticide free, organic, not tested on animals ] Packaging: Recycled content, recyclable, aerosol free, biodegradable, reusable ] In use: Low fume, energy efficient, no CFC ] After use: recyclable, bio-degradable, ] Manufacturer: Socially responsible, ISO 14K certified, CERES signator ] Cause related: 5% profits go to…….
\ Health/organic foods \ Fuel/energy efficiency \ Less Packaging (lower disposal costs) \ Possible green premium
\ Premium less likely? \ Depends on segment
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Communicating the right message to right customers at optimal cost ] Promotional strategies: Pull (by customers) v/s Push (by the channel) ] Promotion mix: personal selling, advertising (media mix:TV, magazines, net, billboards, POP), sales promotions, publicity ] Credibility ] Managing the sales force ] Endorsements, partnerships, third party certification
] First party \ Product Related [ Product claims On product Labels, or In Ads. [ Cause Related - Proceeds donated to…….. \ Corporate Related [ Cause Related (Company supports WWF) [ Promotion of Corporate Env Performance (Least TRI, Env spending,) ] Third Party Certification
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] HJ Heinz: Introduced Dolphin-Safe Tuna (1990) \ Dolphin deaths due to Tuna catching \ Dolphin safe tuna was lower quality, more expensive western pacific skipjack tuna (with other env damages) \ Broadly distributed commodity \ Greened up product \ Fierce price competition \ Pure public good benefit \ Competitors matched immediately \ Tried limiting competition from dolphin unsafe tuna \ Finally diluted the legal definition of Dolphin Safe tuna
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