Sustainable Marketing - NOVA SBE - Fall T1 2024-25 PDF

SUSTAINABLE MARKETING FALL T1 2024-25 Course Instructor: Teaching Assistant: Arnaud Monnier Natalie Reyher [email protected] [email protected]...

SUSTAINABLE MARKETING FALL T1 2024-25 Course Instructor: Teaching Assistant: Arnaud Monnier Natalie Reyher [email protected] [email protected] 1 Arnaud Monnier Previous Work Experience Professor of Marketing, EDHEC Business School (France) Education: Ph.D. in Marketing, Johnson College of Business, Cornell University (USA) M.Sc. Business and Management, Rotterdam School of Management, Erasmus University (NL) M.Sc. Food Science (and Marketing), Agrocampus-Ouest (Institut Agro Rennes-Angers, France) Research: Behavioral Pricing; Consumer Well-Being; Food Decision-Making Other Work Experience: Business Journalist (Linéaires); Sales Force Coordinator (General Mills France) 3 Arnaud Monnier E-mail address: [email protected] NOVA SBE Faculty profile: www.novasbe.unl.pt/en/faculty-research/faculty/faculty-detail/id/1304/arnaud- monnier LinkedIn profile: www.linkedin.com/in/arnaud-monnier-344186a/ 4 Questions on the course? 1. Check online resources (Moodle, etc.) 2. Ask your fellow students 3. If no satisfactory answer: email the TA – Natalie 4. If no satisfactory answer: email me - Arnaud 6 About You? Brief introduction… Where are you from? Your [undergraduate] academic background? Why did you enroll in this course? 7 Sustainable Marketing Please use your name tags to facilitate classroom interaction 8 Course Main Goals Provide an overview of sustainability and its impact on Marketing Understanding consumers’ responses to sustainable marketing; how to communicate value and encourage sustainable behavior Developing sustainable marketing strategies Developing sustainable marketing mix (4Ps) Understanding the challenges to sustainable marketing (greenwashing, stakeholders management, etc.) 9 Course Structure Lectures 10 Topics Introduction and general overview The psychology of sustainable consumption Greenwashing and challenges Application: topics of sustainability in food systems and food marketing 11 Cases Session 1: Transparency and Ethics at Everlane Session 2: Beyond Meat: Changing Consumers' Meat Preference Session 3: Sustainability at IKEA Group Session 4: Tony's Chocolonely: Taking On "Big Cocoa" and West African Child Slavery in the Supply Chain Session 5: Unilever New Global Strategy: Competing through Sustainability & Renoon: Reinventing Shopping for Sustainable Fashion 12 Sessions Session 1: Introduction + Everlane case Session 2: Psychology of sustainability + Beyond Meat case (09/09) Session 3: Greenwashing + Ikea case (16/09) Session 4: Application + Tony's Chocolonely case (23/09) Session 5: Unilever case + Renoon case (30/09) Session 6: Group presentations (07/10) 13 Assessment The final grade is based on the following: Group assignment grade (50%) weighted by peer evaluation coefficient Final individual exam on Wiseflow (35%) – on Oct 19 at 4 pm Three home assignments for sessions 3 to 5 (5% each) The instructor may consider individual class attendance and participation for minor grade adjustments 14 Assessment: Peer Evaluation Member 1 Member 2 Member 3 Member 4 Member 5 Total Index Group Indexed Final Case Grade Teamwork (count grade grade for 25%) Member 1 20 20 25 25 20 110 1.10 16 17.6 16.4 Member 2 20 20 15 15 20 90.90 16 14.4 15.6 Member 3 20 20 20 20 20 100 1.00 16 16.0 16 Member 4 20 20 20 20 20 100 1.00 16 16.0 16 Member 5 20 20 20 20 20 100 1.00 16 16.0 16 100 100 100 100 100 15 Assessment: Final Group Grade The final group grade follows this formula: Group Grade*0.75 + Indexed Grade*0.25 i.e., 25% of the group grade is indexed on peer evaluation This is not a hard rule. We may revise this rule at our discretion on a case-by-case basis if peer evaluations are fishy. 16 Home Assignments Submit a half-page writeup on Moodle by the start of the session Session 3: Ikea case (16/09) Session 4: Steffen et al.’s Science paper on Planetary Boundaries (23/09) Session 5: Renoon case (30/09) 17 Group signup sheet Group formation: Sustainable Marketing Groups T1 - Google Sheets 2 groups of 6 students, 13 groups of 5 students Please form your group by next Monday, September 9th You may indicate the name of the brand or company you plan to study later on 18 Assessment [LAB bonus] In this course, you have the chance to get a grade increase by participating in behavioral experiments at our Nova SBE Lab You can earn up to 0.4 bonus points on your final grade by participating Each research session lasts approximately 30 minutes and comprises several tasks and you need to complete the whole session to get 0.2 bonus points for that session Everybody is eligible to participate but on a voluntary basis only – However, if you sign up for a certain time and date, you are expected to show up Limited availability, FCFS [enough room for everybody, but only in a limited time- frame] For more details, please contact Nova SBE LAB managers 20 Case Study: What is it? Snapshots of particular business problems at specific points “Real” Cases are based on real-world marketing problems “Not Real” Cases are somewhat simplified real-world “big” problems Limited information 21 Case Study: Why? Stimulate active thinking and analysis of complex situations Build your skills in identifying sustainable marketing problems and solutions in a variety of industries and competitive situations Get familiar with real, contemporary issues in sustainable business Get valuable practice in evaluating strategic alternatives, and formulating workable plans of action 22 Case Analysis: Preparation 1 2 3 Skim the case Read the case Carefully review quickly thoroughly the information Get an overview Digest the facts presented in of the situation and exhibits circumstances 23 Group Presentations Find a company of your choice Follow Case analyses guidelines in this powerpoint Analyze its situation on the market. Identify one (or more) important challenge(s) that lies ahead. What course of action would you recommend for the company in terms of sustainable development? Use frameworks you know (SWOT, 4Ps, etc.) to analyze the situation in your report, but do not spend too much time on it during the presentation Potentially do your own market survey to explore consumers’ perception of the brand/company (e.g., survey students on campus, etc.) Benchmark vs. what competitors are doing. What can the company do better/differently? Always through the lens of sustainable development Written report: Title page (with names) + 5 pages maximum double-spaced (or 1.5) font size12 (be concise!) + Exhibits Presentations: 6 minutes per group. 1 question. 2-minute transition. Deadline: Upload the presentations and write-ups on Moodle by 5 pm the day before the presentation session (i.e., 5 pm on Sunday October 6th) 24 Group Case Analysis : Main Steps Problem Analysis and Recommendations Identification Evaluation 25 Group Case Analysis : Main Steps Problem Analysis and Recommendations Identification Evaluation Be specific to the given context How are problems found? Data (sales, customer satisfaction) Exogenous changes (regulations) Competitors’ movements Need to be addressed in the first paragraph of your case write-up 26 Group Case Analysis : Main Steps Analysis and Problem Identification Recommendations Evaluation 27 Group Case Analysis : Main Steps Analysis and Problem Identification Recommendations Evaluation 3Cs Company Qualitative Competition Analysis Customer + Exploratory & Descriptive research (i.e., Focus group, survey, etc,) 28 Group Case Analysis : Main Steps Analysis and Problem Identification Recommendations Evaluation Company Analysis - SWOT Internal assessment – Characteristics of the company What are core competencies, especially with respect to rivals? Strengths – Capabilities to be leveraged Weaknesses – Obstacles to be addressed External assessment – Conditions related to the industry environment Opportunities – Trends, forces, events to be capitalized on Threats – Possible events or forces outside your control that must be mitigated 29 Group Case Analysis : Main Steps Analysis and Problem Identification Recommendations Evaluation Evaluate the possible alternatives Make a decision 4Ps: Product, Promotion, Place, Price 30 Case Analysis : Main Steps Problem Identification:  Distinguish between major and minor (more insignificant) problems. Situation Analysis:  Do a 3 C’s Analysis to understand the Company, its Customers and Competition  And/or SWOT Analysis What FEASIBLE alternatives does the management have?  Strategic or Qualitative Analysis  Weigh carefully the pros and cons of each alternative before deciding on the best one.  Explain why the other alternatives are inferior strategically.  Provide justification to your proposed solution using data Propose a strategy to implement  4P’s (Product, Place, Price, Promotion)  Be creative! … but reasonable… 31 A good answer to a case 1. The solution must address the root cause of the overarching problem AND you need to explain how your solution addresses the underlying causes 2. Is well-supported by sound analyses, based primarily on facts (i.e., provide figures, exhibits) or on clear assumptions when information is not available (disclose assumption) 3. Assess the pros and cons of your position, and refutes reasonable alternative courses of action Explain why other ideas are not as good as yours 32  THERE IS NO SINGLE GOOD ANSWER TO A CASE COHERENCE IS KEY 33 WHAT IS SUSTAINABILITY? 35 What is sustainability? “Meeting the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations 1987) 36 The UN Sustainable Development Goals (SDGs) 37 Increasing marginal returns to sustainable development in terms of well-being World Happiness Report 2020 38 Data Are UN sustainable development goals on track? https://www.weforum.org/agenda/2022/09/un-sustainable- development-goals-progress-report/ UNSTATS.UN.ORG/SDGS/REPORT/2022/ 39 Data 40 Data To limit warming to 1.5 Celsius, global greenhouse gas emissions must decline by 43% by 2030. However, under current global net-zero commitments, emissions are still projected to increase by almost 14% over the next decade. Therefore, immediate and deep reductions are needed to meet obligations agreed in the Paris Agreement 41 Data 42 Data 43  Visual Data Climate Spiral – YouTube 45 Societal pressure increases… 46 … but challenges remain 47 … but challenges remain ‘How concerned, if at all, are you about climate change, sometimes referred to as “global warming”?’ (Grant 2020) 48 What is the problem with Marketing? “Marketers should be cognizant that the consumption mindset that conventional marketing encourages is a key driver of negative environmental impacts.” (Ripple et al., 2017) 49 What is the problem with Marketing? Laws will affect marketing activities, more and more Selling to more people vs. Selling more to each individual 50 What is the problem with Marketing? Increase the quantity consumed by the current consumers Increase replacement rates 51 What is the problem with Marketing? Increase the quantity consumed by the current consumers Increase replacement rates 52 Sustainable Marketing Triple Bottom Line 53 Sustainable Marketing: Definitions Sustainable Marketing is “the study of all efforts to consume, produce, distribute, promote, package, and reclaim products in a manner to achieve ecological, economic, and social objectives” (Dahlstrom & Crosno 2021) “Greener Marketing is defined (…) as integrating sustainability and social purpose – building brands and businesses that are both Not Bad and Net Good. This is no longer a niche or an afterthought. The Green Economy may be as central to business strategy in the coming decades as the Digital Economy has been in the last decades” (Grant 2020) 54