Green Marketing strategy critique and analysis:
In this section you are required to critically analyse Patagonia brand’s sustainability (green) marketing strategy. You need to address 3 of the green marketing strategy elements – product strategy, place strategy and price strategy) and also integrate green marketing theory/concepts/models/ frameworks, etc. to justify your arguments in the critical analysis. It may be appropriate to place more or less emphasis on different aspects of your topic in your observation and analysis.
Green marketing Product strategy considerations: (300 words)
Determine product innovation tactic : incremental improvement, alternate technology, creation of novel products &/or service systems, co-evolution of new systems.
What level of strategy development? – partial approach, full integration of sustainable production or somewhere in between
To what extent does the product meet the natural step framework criterion?
Toxicity, durability, ergonomic design, made from renewable products etc
Production processes – are they sustainable? To what extent?
What type of innovation change & related strategy?
Packaging and labelling issues
To what extent does the brand promise align with actual product sustainability?
Green marketing place strategy consideration: (sustainable supply chain and value chain) (300 words)
How important is the supply chain process to the positioning of your brand’s green/sustainability credentials?
Are you able to source data/information in relation to your brands distribution channels and related sustainability practices?
Possibly the brand fits well with green credibility on other strategy elements, but not in the supply chain management
if so then there is opportunity for a strategy recommendation.
Some themes for consideration in sustainable value chain management
- Materials used in product design for the environment
- Product design processes
- Supplier process improvement
- Supplier evaluation
- Inbound logistics processes
- End-of-pipe technology management
- Management commitment to supply chain EFP (environmentally friendly practices)
- Need to go beyond environmental compliance – to proactive EF supply chain.
Green marketing price strategy considerations: (200 words)
What particular pricing strategies do you think are most appropriate for environmentally sustainable products and services?
The keys to sustainable pricing are:
to account for the real life-cycle costs of products;
reduce those costs by developing more sustainable processes and practices;
Government responsibility to support and reward sustainable practices by realigning government subsidies; and
use marketing techniques to help break society’s addiction to abundant and cheap, but unhealthy and unsustainable, products.
Some additional green pricing strategies:
Donald Fuller identifies several pricing strategies that are compatible with the design and manufacture of environmentally friendly products. Examples ?
1.Meet-the-competition pricing: Maintain price at “look-alike” competitor levels, allowing positive eco-attributes to serve as the “tie-breaker.”
2.Premium green pricing: Target customers who will pay a premium to obtain “green” benefits.
3.Bulk pricing: Provide products in larger quantity packages at per-unit discounts that reflect savings in packaging material.
4.Service-life pricing: Compare the price over time between environmentally preferable products with long life spans and those with short life spans – e.g. price per use – fashion?
5.Take-back pricing: Price durable goods so as to facilitate the recovery of materials and future costs of disposal.
6.Rent/lease pricing: Retain ownership of the product and charge consumers only for actual use – e.g. car rental schemes for city dwellers; bicycle rentals in inner city environments.
Consumer responses to green pricing
What does pricing signal to consumers generally?
How do you think consumers respond to green pricing?
