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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
