Marketing Chapter 20 Mini Sim on Sustainability
Decision Point: Salvatore's Pizza Restaurant Your next client is Salvatore, who inherited a small family-run pizza restaurant and delivery business from his father a few years ago. The business was originally started by Salvatore's grandfather, and it has been Salvatore's dream to keep the business alive by serving pizza made with his family's secret sauce. Since Salvatore took over the restaurant, business is better than ever. He now feels it's time to implement the concepts of societal marketing and consider society's long-run interests along with the interests of his business and his customers. Before his meeting with you, he met with his staff and asked them to come up with a list of ways that they could do well by doing good. The items on Salvatore's list are shown below. Which of them would you recommend?
Correct ones -Use biodegradable and compostable takeout boxes. -Use pizza boxes that are made of recycled cardboard and designed to reduce waste. -Give customers a discount for bringing back pizza boxes to be composted. (Feedback) You chose to give a discount for bringing back pizza boxes. This was one of the best choices because pizza boxes are not recyclable and thus end up in the landfill. Composting can turn the pizza boxes into nutrient-rich fertilizer for soil. You chose to use pizza boxes made of recycled cardboard. This was one of the best choices. Recycling protects the environment, reduces energy consumption, reduces pollution, conserves natural resources, and reduces global warming. However, it would be important to make sure that the pizza boxes are cost effective as well as environmentally friendly. You chose to use biodegradable and compostable takeout boxes. This was one of the best choices. Biodegradable products produce far less pollution and greenhouse gases, and composting biodegradable boxes along with other waste can turn trash into nutrient-rich fertilizer for soil.
Decision Point: Triple D: Explaining Sustainable Marketing You suggest to Dawn that sustainable marketing is about more than counteracting negative press or damage control. You explain that products can be classified according to their degree of immediate satisfaction and long-run benefit, and sustainable marketing calls for products that are not only pleasing, but also beneficial. Dawn confesses that she doesn't understand and asks you to provide some examples to clarify. Consider the products/services shown below and drag them into the appropriate quadrant of the societal classification of products matrix.
Deficient Products - Unproven Medicine Salutary Products -Seat Belts -Smoke Alarm -Dental Floss Desirable Products -Oatmeal -Low-Fat Yogurt Pleasing Products -Deep-Fried Cookie Dough -Cocktails (Feedback) When asked to categorize items as either deficient products, pleasing products, salutary products, or desirable products, you correctly identified all 8 items. Great job!
Decision Point: Decadent Donut Delights Your next client is Decadent Donut Delights -- commonly referred to as Triple D -- a donut/ice cream food truck business. The business started out as one food truck that served custom ice cream sandwiches. The customer chose an ice cream flavor, toppings, and a donut, and within minutes, the "decadent donut delight" was presented. As the word spread, one food truck grew into several, and then the company expanded into nearby cities and towns. The company began franchising its food trucks just over a year ago, and profits have been growing as fast as customers' waistlines. Its products have been the subject of a recent consumer health study at a major research university, and the study has determined that its products are high in calories, fat, and carbohydrates. Dawn, the Marketing Manager, shares this information in a matter-of-fact tone: "The findings probably aren't a sur
Marketing Concept (Feedback) You chose the marketing concept. That was the best choice. The marketing concept recognizes that organizations thrive by determining the current needs and wants of target customers. It focuses on meeting the company's short-term sales, growth, and profit needs by engaging customers and giving them what they want now. However, satisfying consumers' immediate needs and desires doesn't always serve the future best interests of either customers or the business.
Decision Point: Triple D: What Changes Should Be Made? Dawn seems to have a better understanding of the societal classification of products, but she is still confused on where Triple D needs to go from here. You explain to Dawn that Triple D's goal should be to add long-run benefits without reducing its product's pleasing qualities so that they achieve both immediate customer satisfaction and long-run benefits. Dawn shakes her head ruefully. "That's a tall order when your company's name is Decadent Donut Delights. How do you recommend we do this without spending a fortune? Yes, we're making money, but we're still relatively small." Which of the following options should you recommend to Dawn?
Offer a frozen yogurt alternative instead of high-fat ice cream in the donut sandwiches., Offer a "lite-size" ice cream sandwich that offers fewer calories and a lower price., Use canola oil or palm oil instead of shortening as a trans-fat-free alternative fro frying the donuts. (Feedback) You chose to offer a "lite size" sandwich. That was one of the best choices. Smaller portions would enable customers to satisfy their immediate wants and needs (and sweet tooth) but may help them meet future best interests of good health through portion control. You chose to offer a frozen yogurt alternative. That was one of the best choices. Low-fat frozen yogurt instead of high-fat ice cream would be a healthier food choice for Triple D's customers that may satisfy their immediate sweet tooth cravings while achieving some longer-run health benefits. You chose to use a trans-fat-free oil. That was one of the best choices. Both palm oil and canola oil are trans-fat-free, although it would be important to use palm oil that has been certified by the Roundtable on Sustainable Palm Oil (RSPO) because, in some regions, oil palm cultivation has caused deforestation. RSPO is an organization established to promote the growth and use of certified sustainable palm oil.
Decision Point: Salvatore's: Finding More Ways to Be Sustainable Salvatore is delighted with your recommendations, so you take a chance and advise him of the societal classification of products -- the same one you discussed with Dawn from Triple D. You know Salvatore is very proud of his family's recipe, and he considers it to be the reason for the success of his business, but you carefully suggest that another way that he can be mindful of consumers' and society's long-run interests is by incorporating more long-run benefits to his pizza without reducing its pleasing qualities. Which of the following should you suggest to Salvatore?
Offer a whole-grain crust option, which will give customers added nutrients and fiber without altering the tater too much (Feedback) You chose to offer a whole-grain crust option. That was the best choice. By using whole grains in the crust, adding nutrients and fiber, this potentially adds some pleasing qualities to Salvatore's pizza so that it will become even more desirable in consumers' minds.
Decision Point: Your Ideas for Josef's Boutique Hotel The following week, you meet again with Josef, who is excited by the many ideas he has developed, and he is equally excited to learn what ideas you can add to his venture. Together, you review the lists and attempt to categorize them according to the grid you had given him last week. Consider each of the ideas shown below and indicate whether they represent Pollution Prevention, New Clean Technology, or Product Stewardship by dragging them into the appropriate quadrant of the Environmental Sustainability and Sustainable Value matrix. (Note: None of the ideas represent Sustainability Vision.)
Pollution Prevention -1. Provide recycling receptacles in all guest rooms, meeting rooms, restaurant, bar, and office. -6. Use refillable soap, shampoo, and conditioner dispensers instead of disposable plastic bottles. -7. Purchase paper products and guest amenity products that contain recycled material. New Clean Technology -5. Install low-flow faucets, showerheads, and toilets in all guest rooms and public restrooms. -3. Install an energy management system (EMS) that requires guests to insert a room key to use energy, ensuring that the guest is in the room when energy is being used. -2. Install compact fluorescent lights (CFLs) in all guest rooms, lobby, and service areas. Product Stewardship -8. Use fabrics for drapes and upholstery that are created from recycled materials that can then be recycled themselves. -4. Use carpeting made from recycled plastics that can itself be recycled.
Decision Point: Triple D: How to Handle the Media Dawn seems pleased with the recommendations you've given her for adding long-run benefits to Triple D's products without reducing their pleasing qualities, but she reminds you that Triple D still has a potential public relations nightmare on its hands when the media learn about the results of the study that its products are high in calories, fat, and carbohydrates. "What's the best way to handle what's sure to be a media nightmare?" she asks. What is your recommendation to Dawn to handle the negative publicity that she expects when the health study is released to the media?
Recommend that Triple D respond by holding a press conference to announce its plans to offer "lite-size" ice cream sandwiches and frozen yogurt alternatives, and to use trans-fat-free oils to fry its donuts. (Feedback) You chose to hold a press conference announcing new products. That was the best choice. If Triple D is going to offer healthier alternatives to its high-fat, high-calorie treats and make improvements to its regular offerings, this could be a good response to negative press.
Decision Point: Your Response to the Test Results You recommended that the company run more tests or obtain other evidence to determine whether the product meets industry standards before making a decision about the ad campaign and packaging. A few weeks later, you get another call from Luke and Gwen, who report that Luke's second round of tests have been verified: the tableware does not break down after disposal within a year; rather, it can take up to five years for the tableware to break down after customary disposal. As the marketing consultant, what is your recommendation?
Recommend that the company obtain an advisory opinion from the Federal Trade Commission to help clarify its rules and decisions with respect to biodegradability. (Feedback) You chose to obtain an advisory opinion from the FTC. That was the best choice. The FTC has the right to request scientific data to prevent the marketing of products with false or misleading claims. At issue will be the FTC's interpretation of whether the words "decomposes into natural elements soon after disposal" is misleading. Asking the FTC for an advisory opinion will clarify whether there is a potential problem with the ad campaign and packaging.
Decision Point: Foodservice Manufacturer: Plastic Tableware Your first client of the day is a manufacturer of foodservice products for the restaurant industry, such as foodservice packaging and containers and disposable tableware. On the conference call are Gwen, the Director of Marketing, and Luke, the Director of Research and Development, and they seem to be on edge with each other. Luke starts the conversation by outlining the problem: "Last year, we launched a new line of plastic tableware that was treated with an additive to start and speed up the degradation process. However, we have been running additional tests, and it now appears that degradation may not occur in landfills as fast as we originally expected." Gwen sighs impatiently. "I'm hoping you'll be able to convince him that this isn't the earth-shattering problem he seems to think it is. It's more a matter of technicality." "Perhaps I'm not understan
Recommend that the company order tests from an independent testing lab or obtain other evidence to determine the validity of Luke's claims before making a decision about the ad campaign and packaging. (Feedback) You chose to order tests to determine the validity of Luke's claims. That was the best choice. Before recommending that the company withdraw an expensive ad campaign and change packaging, it would be prudent to recommend verifying Luke's claims. Although the company has an obligation to treat customers fairly and honestly, it also has the responsibility of financial stewardship to its shareholders -- the care, conservancy, and management of its financial resources.
