The Synergy of Sustainability and Societal Marketing


Published on

The study of this thesis highlights the direct importance of Sustainable Development in businesses. Sustainability presented here is concerned about the future based on three dimensions: Society, Economy and Environment. For this reason it employs the Societal Marketing Concept instead of the traditionally used Selling Concept as a marketing strategy. Selling products is not the only concern of companies anymore. They need to understand the needs of consumers and of society in order to satisfy them. It also utilizes the Corporate Social Responsibility model as one of the fundamental tools for the company to develop its business. Furthermore, this study exposes the essential meaning of Business Ethics when dealing with Sustainability. It is extremely significant for a company to practice Business Ethics otherwise it will have negative results resulting from its behavior. This thesis not only emphasizes Societal Marketing and Sustainability as two disconnected scopes; it also highlights the synergy between them. Synergy is defined as the sum of two and two equaling to five - Yes, five. This means that synergy is a method of combining different business sectors in a way that delivers unexpected results, innovation, and a competitive advantage that all companies seek. Understanding the essential need of synergy and the application with Sustainability and Societal Marketing this study forges a Sustainability Sweet Spot. This synergy between Sustainability and Societal Marketing works in real companies by achieving new products and management methods, as shown in a case study of Natura Cosmetics, a successful Brazilian Company that a leads its industry.

Published in: Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Good Afternoon. My name is Liliana and today I am going to defend my Thesis about the synergy of sustainability and societal marketing to increase the competitive advantage and present a case study of a Brazilian Company Natura Cosmetics. My supervisor in professor Cheng Guoping.
  • Do you know?
  • a new species goes to extinct every 20min
  • Over than 1 billion people have very limited or no access to fresh water or food
  • And recently some countries are experience economic crisis
  • By those facts, I made myself a question: are we sustainable?!
  • Trying to understand this question, I developed this research based on 6 chapters. The main point of this, is manage the sustainability in synergy with societal marketing with competence and responsibility increasing the competitive advantage.
  • TBL is that is represents the idea that business does not have one single goal – namely adding economic value – but that it has an extended goal set which necessitates adding environmental and social value too.
  • Why it is so Important? Although those who think sustainability is only a matter of pollution control are missing the bigger picture . Increasingly, the scourges of the late twentieth century – depleted farmland, fisheries, and forest; chocking urban pollution; poverty; infectious disease; and migration – are spilling over geopolitical borders.
  • (1) There is nothing wrong with corporate charity, but the sustainable company conducts its business so that benefits flow naturally to all stakeholders, including employees, customers, business partners, the communities in which it operates, and of course, shareholders.
  • Achieve the needs of society requires that the organization understands that it also involves satisfying the demands of consumers, and also worry about the environment. Pollute air, water and land, besides being harmful to nature, is to society. That affects directly the company and the economy. Therefore, the importance of understanding the essentiality of the synergy between these factors is more than corporatism or business ethics; indeed it is about the future investment and profits of the organization
  • Fragances Creams and lotions Make-up Deodorants Hair products Soaps Suncreens Shaving Products
  • The sustainability actions of Natura are not isolated. Those are part of it values and directly interfered with the strategic decisions of the company. These strategies are also aligned with the vision of the Government, therefore, the identification of the priority themes for sustainability is the result of a structured process of stakeholder engagement. And our current issues priority is climate change, the Amazon, biodiversity, education, the impact of products and quality of relationships.
  • Since 2007, when we created the Carbon Neutral Project, we began to neutralize GHG emissions throughout the entire chain, from the extraction of raw materials and packaging materials to the final destination of products and packaging. Our goal is to reduce relative GHG emissions by 33% by 2011, with a base date of 2006. In 2009, we surpassed our reduction target of 3% and registered a 5.2% reduction in our relative GHG emissions, i.e., CO2 kilo per product billed kilo [68]
  • The Synergy of Sustainability and Societal Marketing

    1. 1. 在可持续发展和社会营销协同作用提高竞争优势 - 以 Natura 化妆品为例 The Synergy of Sustainability and Societal Marketing to increase the Competitive Advantage - Case Study of Natura Cosmetics MBA Defense 2010 Liliana Chin Lau Prof. Cheng Guoping
    2. 2. What Is Sustainability? ECONOMY SOCIETY ENVIRONMENT
    3. 3. But…
    4. 4. <ul><ul><ul><li>deforestation </li></ul></ul></ul>
    5. 5. <ul><ul><ul><li>hunger </li></ul></ul></ul>
    6. 6. <ul><ul><ul><li>economic crisis </li></ul></ul></ul>
    7. 7. Are we Sustainable? ECONOMY SOCIETY ENVIRONMENT
    8. 8. The Chapters <ul><li>The Introduction </li></ul><ul><li>The Literature Review about Sustainability </li></ul><ul><li>Societal Marketing attending the Sustainability </li></ul><ul><li>Sustainable Development Synergy with Societal Marketing </li></ul><ul><li>Case Study – Natura Cosmetics </li></ul><ul><li>Conclusions and Recommendations </li></ul>
    9. 9. What is the concept and the need of Sustainability?
    10. 10. The Triple Bottom Line by John Elkington Reference: Monye, Sylvester O. The handbook of international marketing communications. USA, 2000
    11. 11. In meeting our needs, we are destroying the ability of future generations to meet theirs Why it is so Important?
    12. 12. How can sustainability contribute to the marketing strategy of a company?
    13. 13. Traditional x Innovator
    14. 14. The Societal Marketing References: Kotler, Philip & Armstrong, Gary. Principles of Marketing. 11 th ed Pearson Education Inc, publishing as Prentice Hall, 2006. Society (Human Welfare) Consumers (Wants, Satisfaction) Company (Profits) Societal Marketing Concept
    15. 15. Corporate Social Responsibility (CSR) as a way to be Sustainable CSR is a key of business strategy. For any competitive advantage a company needs to be sustainable.
    16. 16. Ethical: to be or not to be? Ethics benefits the organization because of the credibility and good reputation among the customers
    17. 17. What does Sustainability have to do with Societal Marketing?
    18. 18. Sustainability Reference: Monye, Sylvester O. The handbook of international marketing communications. USA, 2000
    19. 19. Societal Marketing References: Kotler, Philip & Armstrong, Gary. Principles of Marketing. 11 th ed Pearson Education Inc, publishing as Prentice Hall, 2006. Society (Human Welfare) Consumers (Wants, Satisfaction) Company (Profits) Societal Marketing Concept
    20. 20. The Synergy Method: Working Together Represents a dynamic process and it involves joint action in which the total effect is greater than the sum of effects when acting independently creating an integrated solution.
    21. 21. Sustainability Societal Marketing Synergy Society (Human Welfare) Consumers (Wants, Satisfaction) Company (Profits) Societal Marketing Concept
    22. 22. Society and Consumers Environment Economy Synergy of Company The synergy between Sustainability and Societal Marketing
    23. 23. How to use this synergy to increase the competitive advantage?
    24. 24. The Sustainability Sweet Spot (SSP) <ul><li>New products and services </li></ul><ul><li>New processes </li></ul><ul><li>New markets </li></ul><ul><li>New business models </li></ul><ul><li>New methods of management and reporting </li></ul>Reference: Savitz, Andrew W; Weber, Karl. The Triple Bottom Line: how today’s best-run companies are achieving economic, social, and environmental success – and how you can too John Wiley Imprint, USA: 2006. Stakeholders Interests Business Interests SSP
    25. 25. Case Study
    26. 26. Principles and Vision Create and sell products and services that promote well being/being well. Well-being is the harmonious, pleasant relationship of a person with oneself, with one’s body. Natura will be an international brand, identified with the community of people who are committed to the construction of a better world, based on a better relationship with themselves, with others, with nature of which they are part, with the whole.
    27. 27. well being, being well Mexico ( 墨西哥 ) Argentina ( 阿根廷 ) Bolivia ( 玻利维亚 ) Chile ( 智利 ) Colombia ( 哥伦比亚 ) Peru ( 秘鲁 ) Venezuela ( 委内瑞拉 ) France ( 法国 )
    28. 28. Products
    29. 29. Thinking in Sustainability <ul><li>Natura shares the view that it must urgently reinvent the development model of society and progress on issues of ethics and environmental responsibility. </li></ul><ul><li>Sustainable development is their business model that combines growth and social economic needs. </li></ul>
    30. 30. Management and Strategy <ul><li>Innovation of Commercial Model </li></ul><ul><li>Focus on Product Innovation </li></ul><ul><li>Investment in Marketing </li></ul><ul><li>Management of processes: the decentralized decision-making and implementation of key processes </li></ul><ul><li>Organizational Culture </li></ul><ul><li>Quality of relationships within Stakeholders </li></ul>
    31. 31. <ul><ul><li>Analysis of Natura’s Sustainability Sweet Spot Carbon Neutral Project </li></ul></ul>
    32. 32. Sustainability Sweet Spot Be a Company that sells carbon neutral products. The goal is to reduce GHG emission by 33% by the year 2011. Be a Sustainable Company Reduce the emission of greenhouse gases to the environment
    33. 33. The Results for Being Sustainable
    34. 34. <ul><li>Natura continued to see strong growth in businesses in the Brazilian market, driven by good results of their action plan, which fueled growth above the industry average. </li></ul>
    35. 35. Innovation Results Innovation Index
    36. 36. The Company of the Year <ul><li>The Carbon Neutral Project brings something more than quantifiable results it brings to Natura the recognition from stakeholders. </li></ul>
    37. 37. Conclusion and Recommendations
    38. 38. <ul><li>Companies need to first comprehend the essence of sustainability and then review its values and concepts adapting itself to stakeholders’ needs. </li></ul>
    39. 39. <ul><li>Adopting the Societal Marketing as a marketing strategy within synergy and Sustainability will innovate ideas, values and concepts. </li></ul>Society and Consumers Environment Economy Synergy of Company Stakeholders Interests Business Interests SSP
    40. 40. <ul><li>Sustainability is Profitable </li></ul>
    41. 41. <ul><li>The retail cosmetic sales grew at 16.9% in China during the course of 2009, a figure that defies the global market trend </li></ul>
    42. 42. Thank you for your attention 谢谢你们 Liliana Chin Lau Public Relations [email_address]