The Synergy of Sustainability and Societal Marketing

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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.

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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 2010MBA Defense 2010

Liliana Chin LauLiliana Chin Lau

Prof. Cheng GuopingProf. Cheng Guoping

What Is Sustainability?

ECONOMYSOCIETYENVIRONMENT

But…

deforestation

hunger

economic crisis

Are we Sustainable?

ECONOMYSOCIETYENVIRONMENT

The Chapters

(1) The Introduction

(2) The Literature Review about Sustainability

(3) Societal Marketing attending the Sustainability

(4) Sustainable Development Synergy with Societal Marketing

(5) Case Study – Natura Cosmetics

(6) Conclusions and Recommendations

What is the concept and the need of Sustainability?

The Triple Bottom Line by John Elkington

Reference: Monye, Sylvester O. The handbook of international marketing communications. USA, 2000

In meeting our needs, we are destroying the ability of future generations to meet theirs

Why it is so Important?

How can sustainability contribute to the

marketing strategy of a company?

Traditional x Innovator

The Societal Marketing

Society (Human Welfare)

Consumers (Wants,

Satisfaction)

Company (Profits)

Societal Marketing Concept

References: Kotler, Philip & Armstrong, Gary. Principles of Marketing. 11thed Pearson Education Inc, publishing as Prentice Hall, 2006.

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.

Ethical: to be or not to be?

Ethics benefits the organization because of the credibility and good reputation among the

customers

Ethics benefits the organization because of the credibility and good reputation among the

customers

What does Sustainability have to do with Societal Marketing?

Sustainability

Reference: Monye, Sylvester O. The handbook of international marketing communications. USA, 2000

Societal Marketing

Society (Human Welfare)

Consumers (Wants,

Satisfaction)

Company (Profits)

Societal Marketing Concept

References: Kotler, Philip & Armstrong, Gary. Principles of Marketing. 11thed Pearson Education Inc, publishing as Prentice Hall, 2006.

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.

Sustainability Societal Marketing

Synergy

Society (Human Welfare)

Consumers (Wants,

Satisfaction)

Company (Profits)

Societal Marketing Concept

Society and Consumers

Environment Economy

Synergy of Company

The synergy between Sustainability and Societal Marketing

How to use this synergy to increase the competitive advantage?

The Sustainability Sweet Spot (SSP)

•New products and services•New processes•New markets•New business models•New methods of management and reporting

Stakeholders Interests

Business Interests SSP

Reference: S

avitz, Andrew

W; W

eber, Karl. T

he Triple B

ottom Line: how

today’s best-run com

panies are achieving economic, social, and

environmental success – and how

you can too John Wiley Im

print, US

A: 2006.

Case Study

Principles and VisionPrinciples 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.

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 )

Products

Thinking in Sustainability

Natura shares the view that it must urgently

reinvent the development model of society and

progress on issues of ethics and environmental

responsibility.

Sustainable development is their business model

that combines growth and social economic needs.

Management and Strategy

(1) Innovation of Commercial Model

(2) Focus on Product Innovation

(3) Investment in Marketing

(4) Management of processes: the decentralized decision-

making and implementation of key processes

(5) Organizational Culture

(6) Quality of relationships within Stakeholders

Analysis of Natura’s

Sustainability Sweet Spot

Carbon Neutral Project

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

The Results

for Being

Sustainable

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.

Innovation Results

Innovation Index

The Company of the Year

The Carbon Neutral

Project brings

something more than

quantifiable results it

brings to Natura the

recognition from

stakeholders.

Conclusion and Recommendations

Companies need to first comprehend the Companies need to first comprehend the essence of sustainability and then review essence of sustainability and then review its values and concepts adapting itself to its values and concepts adapting itself to stakeholders’ needs.stakeholders’ needs.

Adopting the Societal Marketing as a marketing strategy within synergy and Sustainability will innovate ideas, values and concepts.

Society and Consumers

Environment Economy

Synergy of

Company

Stakeholders Interests

Business Interests

SSP

Sustainability is

Profitable

The retail cosmetic

sales grew at 16.9% in

China during the

course of 2009, a

figure that defies the

global market trend

Thank you for your attention谢谢你们

Liliana Chin Lau

Public Relations

lilianachinlau@gmail.com

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