ENVIRONMENTAL MARKETING
DIAGNOSING THE ELEMENTS OF SUSTAINABLE SUPPLY
Delivering Value via Sustainable Supply Cycle Strategies
STAR BUCKS
1. Shared Planet program
 environmental commitment which recognizes that
conservation needs to occur throughout the supply
chain
 work in conjunction with Conservation International
for ten years to develop
 Coffee and Farmer Equity (C.A.F.E.)practices
C. COFFEE
1.24 comprehensive, measurable standards designed to
enable suppliers and farmers to become sustainable sources
of coffee.
 2008.77% -295 million pounds of coffee purchased
from suppliers verified and approved under CAFE
 Average cost of $1.49 per pound is 5% above the
average price for C grade Arabica
DIAGNOSING THE ELEMENTS OF SUSTAINABLE SUPPLY
CYCLES
1. SUPPLY CYCLES
 organizations involved in making a product available
for sale
 functions performed by these organizations.
2. triple bottom line benefits associated with economic,
social, and financial performance
3. Three perspectives on the delivery of value
 Channel: a set of organizations involved in the
process of making a product available for
consumption
 Logistics: the supply chain is a set of organizations
linked directly to the flow of products and
information from a source to the a consumer
 Porter: value chain is the set of primary and support
activities performed by the firm to serve as sources
of competitive
B.
CYCLES
Inputs & Outputs at One Stage of the Supply Cycle
THREE PERSPECTIVES OF THE DELIVERY VALUE
6. We refer to process of delivering value as a supply cycle
due to the relationship between the environment and the
product development process
BENEFITS OF SUPPLY LIFE CYCLES
1) BETTER Working condition
Take steps to reduce noise pollution, both from outside and
inside the office, and decorate the office nicely with light
pleasant colours and art on the walls. Make sure the
workplace is kept clean to a high standard, repairs completed
promptly and general maintenance kept on top of. Oh
2. REDUCED TURN OVER
Employee turnover is the rate at which employees leave and
are replaced by new ones in a given period. Low employee
turnover means that your employees tend to stay with your
company for a long time, which can indicate high satisfaction,
loyalty, and engagement.
3. IMPROVED PRODUCT QUALITY
Increasing product quality is not easy, but by focusing on
customer satisfaction, your company will be more likely to
get better business results. Quality starts with good product
design and needs to be well-defined.
You should consider developing a OMS, conducting product
testing, and developing a culture of quality.
4) IMPROVED EFFICIENCY AND PROFITABILITY
Efficient companies make the most of their resources,
transforming labor, materials and capital into products and
services that create profit for the company. Inefficient
companies, on the other hand, lack organization, which can
slow down their operations, waste time and money and
impact profitability.
5.) Better Management of Risk
Understanding and effectively mitigating liabilities is a
cornerstone for any organization aiming to thrive in today's
dynamic market.
6.) Enhanced Brand Reputation
Firms that invest in sustainable practices in the supply chain
develop positive brand reputations that pay dividends in
multiple relationships.
7) Stakeholder Returns Increased
Companies that focus on the triple bottom line (considering
profit, people, and the planet) are good at predicting and
managing risks related to money, society, and the
environment.
SUSTAINABLE LOGISTICS
LOGISTICS refers to the process of planning, allocating, and
controlling human and financial resources dedicated to
physical distribution, manufacturing support, and purchasing
operations.
REVERSE LOGISTICS that trace products back from the point
of consumption have increasingly been addressed in supply
chains
ISOO 14000
2. ISO
a. family of standards applied across industries to monitor
and control interaction with the environment
b. Two of the primary standards
1. ISO 14001: 2004 - outlines the guidelines associated with
the firm's approach to sustainability, and it provides a
strategic approach to the organization's environmental policy
2. ISO 14004:2004 - provides guidelines on the elements of an
EMS, its implementation, and the principal issues involved
3. Benefits
a. competitive advantage over other firms in a market
b. lower toxic emissions
c. lowered resource usage
d. higher energy savings
e. lowered costs of waste disposal
f. provide assurance to stakeholders that the firm is
committed to sustainability
g. provides a strong response to customers and suppliers that
place environmental demands on the firm
Proclaiming value via sustainable Pricing strategies
INTERNAL PRICING CONSTRAINTS
FIXED COST refer to cost factors that do not change in the
short run, where as VARIABLE COST refer to costs that
fluctuate with the amount of product sold.
Customer Demand - The variety of the retail level enables the
consumer to select among products with different level of
values, and this diversity enables the retailer serve multiple
segments of the market. In order to assess the potential of a
market or market segment it is necessary to understand what
is valued by the customer.
Legal Constraints refers to regulatory requirements
associated with the marketing of products.
Competitive Action - are either strategic or tactical in nature.
The firm takes competitive actions to defend or build its
competitive advantages or to improve its market position.
Competitive responses are taken to counter the effects of a
competitor's competitive action.
Corporate Mission and Pricing objectives
•Pricing objectives are intricately linked to the corporate
mission. A mission centered on delivering superior value to
customers often corresponds with pricing strategies aimed at
offering competitive prices or premium pricing for
exceptional products or services. The mission shapes pricing
decisions, ensuring they resonate with the company's
overarching purpose.
Carbon Offset Pricing It refers to situations under which the
marketer of a product enables the purchaser to compensate
for greenhouse gas emissions associated with consumption.
COMPETITIVE PRICING
• Break-even Pricing It attempts to establish a
price that covers all costs of operations.
• Cost-based Pricing- It adds a markup to the
cost of the product to establish the price.
• Value-based Pricing It uses the consumers'
perceived value of a good to establish price.
Status quo pricing - Refers to charging a price that is
consistent with the competition.
* Firms can effectively use this strategy to offer a product
that is superior in terms of green marketing, yet the product
can sells at the same price point as the alternative.
Skimming pricing - Refers to setting a price to reach
consumers willing to pay a higher price for a product prior to
marketing the prodcut to more prie sensitive consumers.
Penetration pricing - Refers to setting a low initial price in an
attempt to increase market share rapidly.
Price Lining - Refers to offering of merchandise at a number
of specific predetermined prices.
Bundling - Refers to offering two or more products or services
for sale at one price.
* Bundling is used to lower consumer's overall costs and
enhance sustainability.
MANAGING CUSTOMER VALUE IN RETAILING
RETAILING
• addresses the interface between producers
and consumers.
• offers substantial opportunities to limit the
carbon footprint.
Effectively managing CUSTOMER VALUE fosters customer
loyalty, repeat business, and positive word-of-mouth
THE CENTRAL ROLE OF RETAILING IN SUPPLY CYCLES
Factors to make retailing the epicenter of the supply cycle in
many industries :
 reflects the change in access to information within
the industry
 reflects the increasing market power of selected
retailers
Retailers are actively assessing (5) five areas of the supply
chain:
 Energy and climate
 Land and soil
 Air
 Water
 Community and people
MARKETING SUSTAINABLE PRODUCT LINES
1.GREEN TECHNOLOGY IN PRODUCT MIX
2. DISTRIBUTION OF SUSTAINABLE PRODUCTS
• Retailers face challenges due to limited
shelf space and high competition among
products.
• Successful introduction of sustainable
products depends on demonstrating
substantial demand and profitability.
• Producers choose distribution channels,
such as specialty retailers
• SPECIALTY RETAILERS
• GENERAL GROCERY MERCHANDISERS
• PRIVATE LABELING
MARKETING SUSTAINABLE CONSUMPTION
POSTRETAIL PACKAGING refer to the form of packaging used
by the consumer to transport product away from a retail
establishment.
 Government Action
 Retailer Action
 Reclamation refers to the responsible collection of
products once they no longer offer value to
consumers(Reverse logistics, Close-looped systems)
 Component restriction refers to limits placed on the
ingredients that can be incorporated into a product.
 End-of-Life Directive
 Restriction of Hazardous Substances (RoHS).
 Waste Electrical and Electronic Equipment Directive
(WEEE).
DELIVERING VALUE TO THE CUSTOMER IS IMPORTANT
BECAUSE
 It helps generate more financial resources
 It helps evaluate best-selling products
  It improves customer acquisition cost ratio Food service component refers to buildings used for
 It creates a pleasant shopping experience preparation and sale of food and beverages. These buildings
 It saves time and makes shopping easier include restaurants, cafeterias, and fast food restaurants.

Energy Consumption in the SERVICES SECTOR Food sales refers to buildings used to sell food at the retail or
wholesale level and includes grocery stores, food markets,
and convenience stores

Offices and Administrative Buildings

Office buildings include locations used for general office

space, professional offices, and administrative offices.
percent of the energy used in these locations is associated
with electricity for lighting, and another is associated with
office equipment. They also rely on natural gas and electricity
for space heating together, space heating fuels account for of
energy use in office buildings. Twenty nine 16% 2

Educational institutions are buildings used for academic or

classroom instruction. These buildings include elementary,
middle, or high schools on and classrooms college or
university campuses. Educational institutions account for 13%
of energy consumption in the services sector. Space heating
(41%), water heating (22%), and lighting (20%) represent
more than 80% of the power expenditures in edu

The health care industry has been working toward developing

sustainability standards since 2002 release of the Green
Healthcare Guidance statement by the American Society of
Healthcare Engineeri

The Green Guide for Health Care

1. Integrated design
2. Sustainable sites
3. Water efficiency
4. Energy and atmosphere
5. Materials and resources
6. Environmental quality
7. Innovation and design process
Non- food retailing
8. Chemical management
The mercantile component of the services sector includes all 9. Waste Management
buildings used for the sale and display of goods other than 10. Environmental services
food. This category includes enclosed malls, strip shopping
Hotel and Lodging
centers, car dealerships, liquor stores, video rental stores,
and every type of retail building other than food retailing. In
 Sustainable building site and design
order to assess the potential to enhance sustainability in the
nonfood retail sector, it is valuable to look at the inputs, Design concerns examine architectural features such as site
processes, and outputs. location, passive solar design, day lighting, renewable energy,
water conservation, and landscaping.
Food Retailing plays a significant role in the services sector,
constituting 10.4% of overall consumption.  Reuse of existing buildings.
 The plan recognizes that, when feasible, retrofitting and
repairing of existing properties is preferred to new
construction.
 Sustainable construction.
Sustainability in construction involves ensuring that
modifications to initial plans do not impair the sustainability
features of the design, nor do they reduce energy efficiency
Usage of energy in transportation
A. Introduction: Transportation Sector Contributors to Carbon
Emissions
Instead of a locomotive, the Sapsan uses electric motors
attached to wheels all along the train cars.
The Russian example is consistent with other markets in
which high-speed trains have roundly beaten planes on price,
overall travel time, and convenience at ranges up to 600
miles (965 km) between major cities.
In addition, using electricity provides the opportunity to use
replenishable sources of energy. Due to the benefits of this
form of travel, the construction of a high-speed rail route
between Paris and Lyons eliminated most commercial flights
between the cities.
In December 2009, a new opportunity for transportation
began to take shape as the Russians implemented high-speed
trains purchased from Siemens.
B. Personal Mode of Transportation
In 2005, passenger travel energy use was 30 exajoules, which
represents an increase of 24% since 1990. More than 2.1
gigatons of carbon emissions are generated through
passenger travel.
Diesel
Rudolph Diesel invented the diesel engine in the 1880s as an
alternative to steam and gasoline engines. Initially, diesel
engines were more fuel-efficient than gasoline engines but
had drawbacks like soot, noise, and slower pickup.
Over time, advancements improved diesel technology,
making the choice between diesel and gasoline more
complex. Today's diesel engines are quieter, cleaner, and
offer competitive fuel efficiency, contributing to the
popularity of diesel-powered vehicles.
Enhanced Gasoline
Consumers can improve fuel efficiency by purchasing smaller-
engine vehicles, using ethanol, and upgrading fuel injection
systems, without necessarily switching to gasoline engines.
One of the simplest and most cost-efficient means by which
to save energy in the auto sector is the education of the
drivers they used GPS to saves energy.
Mass Transit
Mass transit is a transportation service available to the public
for trips generally within metropolitan areas.
• IPCC estimates that the aviation contribution to global
warming is 3.5%.
• Air travel has increased at an average annual rate of more
than 5% since 1970.
AIR TRAVEL
90% of the exhaust emitted from aircraft is in the form of
oxygen or nitrogen.
CONSIDERATION THAT TAKES EFFECT IN THE REDUCTION OF
CLIMATE CHANGE
• Technological performance -these include enhance engine
designs, aerodynamic deficiencies, and structural deficienies.
• Operational Acitivities
High-Speed Trains
Since the introduction of the Shinkansen High-speed
train service between Tokyo and Osaka, Japan, in 1964,
the high-speed train (HST) has increasingly become a
vibrant part of transportation in many parts of the
globe. High-speed trains are family of technologies that
provide high-capacity, frequent railway services
achieving an average speed of more than 200
kilometers per hour (124 miles per hour)
Benefits of high-speed trains
 Reduced travel time relative to other rail systems
 Safety record of these train systems
 Increases the opportunities to travel
Rapid Transit

Since 1995, public transit use has increased by 20%, yet it still
only accounts for about 1% of total passenger miles. One
technology that has drawn substantial recent attention is bus
rapid transit (BRT). BRT is a rubber-tired rapid transit mode
that combines stations, vehicles, services, running ways, and
intelligent transportation system (ITS) elements into an
integrated system.62 BRT systems and features have been
implemented in South America, Europe, and Australia, and
BRT systems are integrated into urban planning programs in
more than 20 cities in the United States and Canada

Benefits of bus rapid transit

 Increased service quality

 Attractive components of light rail systems
 Can be flexibly integrated into existing
transportation routes
 Lower carbon footprints for communities

Freight Transportation

Within the transportation sector, freight accounts for 30% of

energy consumption among the International Energy Agency
s 18 countries. Freight transport energy use was 18 exajoules,
and this consumption level was 27% greater than the level in
1990. Freight includes the transport of products by highway,
air, rail, sea, and pipeline. At 99% of total final energy
consumption, oil is far and away the fuel of choice for moving
freight. Most of this fuel is some form of diesel.