Total Marketing Solutions

Following on from the last blog, it occurred to me that perhaps - whilst it might be a case of STBO for many - with many SME’s still lacking any kind of sustainability strategy, it might be worth looking more closely at the reasons why we as Marketing Consultants are keen to ensure that sustainability is at the forefront of the work we do with our clients.  So why should we really care if our products are sustainable or not? Grab that cup of fairtrade coffee again and chew on this:

• The world’s population has doubled in the last 50 years.
• UN forecasts show a further explosion of 3.3 billion to 2050 - 90% of which will be in the developing world.  
• The predicted resulting growth in consumption of energy and natural resources is already ringing alarm bells. 
• The globalisation juggernaut is still gathering speed - creating a greater North-South divide, destroying habitats and species diversity, whilst CO2 emissions have doubled over the last 50 years.

Thankfully, it’s not all doom and gloom. Consumers are realising that their current levels of consumption are having a negative impact on the planet and are looking to change their buying behaviours to reflect a more responsible approach to being a consumer in the 21st century. Businesses are now also realising that reacting to this shift in consumer demand not only represents an opportunity to do the right thing but also is evolving into a real chance to develop their own competitive advantage.  This advantage could be down to successfully differentiating a product due to its sound environmental or social performance. Alternatively, it could be down to any cost savings due to a reduction in materials or energy usage. Either way, it’s a win-win situation that is too good to ignore. Understanding your customers’ potential appetite for sustainable products is key to deciding how to shape your strategy.

So where to start? Mentioning the Marketing Mix may warrant another slurp of that strong coffee to stave off the inevitable yawn, but it really is a good starting point. As Marketing Consultants, it still plays a valuable role in defining our customers current strategic position, particularly regarding sustainability. A quick skip through the 7P’s in the Mix can bring some real insight:

1. Product/Service - how sustainable is your product or service? What are the real social and environmental aspects of making, using and disposing of your product?
2. Price - What is the true cost of the product? Perhaps those costs are only really apparent at the end of it’s Product Life Cycle when it has to be disposed of.
3. Place (or distribution) - can your distribution channels be streamlined to reduce their impact on the environment?
4. Promotion - a tough one, but is your current product promotion encouraging excessive promotion? (Just upgraded your perfectly functioning mobile for a slicker model anyone?) Are any sustainability claims accurate, because if they are not, a bumpy ride ahead can almost be guaranteed. The aware consumer will not tolerate tokenism and any bogus claims will be quickly found out and fired right back at you.
5. Your people - are they treated fairly, paid a living wage? (That’s a good one to ask when you buy your £2 T-shirt.)
6. Company processes - do current processes actively encourage the enhancement of natural and human resources?
7. Physicals (lorries to livery) - are there processes in place to reduce excess usage and sustainable sourcing? 

This sounds like a lot, but many SME’s are now grappling with these issues as a basis for developing their sustainability strategy. They are not only starting to sleep more soundly at night but they will also start to see the improvements in their bottom line.