SUSTAINABILITY has been at the forefront of public consciousness in the past three decades, with good reason.
Large and small companies have been taking note of this trend and have started embedding sustainable practices into their business models, strategy and business development.
Green marketing has been rising, in terms of appeal, to customers who have become environmentally conscious about packaging and the products that they buy.
In this article, we explore the business value of sustainability, or green marketing, as a strategy.
According to a survey by Unilever, 33% of consumers are choosing to buy from brands they believe are doing social or environmental good.
This has potential ramification on products from developing economies like Zimbabwe when entering international markets.
Green marketing has been instrumental in creating value and positive impacts for global companies and their reputations.
Companies that prioritise sustainability are often associated with positive impacts on the environment and society.
- How companies can ride on sustainability marketing
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By promoting your company’s eco-friendly practices and green credentials, you improve customer loyalty.
Examples can be cited of Body Shop, which pioneered sustainable skin care.
Body Shop has a reputation for the social and environmental consciousness attached to its products reputation and brand recognition.
Similarly, Unilever has built the same reputation and market leadership.
Other companies that have benefited from the same approach could include Cemex, Holcim Lafarge, Patagonia, Coca Cola and Orsted.
Sustainability can lead to significant cost savings for businesses.
By reducing waste and implementing energy-efficient practices, companies can reduce operational costs.
One example is Toyota, which has been at the forefront of hybrid and electric vehicle production.
By implementing sustainability, Toyota has been able to reduce production costs and improve its bottom line.
Research has also shown that companies that deeply embed sustainability are often associated with lower employee turnover and high employee morale.
The ripple effect is high productivity and reduced costs from disruptions.
At the core of corporate sustainability is stakeholder engagement.
Stakeholder engagement allows customers, employees, suppliers and others to raise concerns and make contributions to business.
It allows stakeholders to be recognised in the company’s value chain, which brings customer loyalty.
By promoting eco-friendly operations and products, companies can demonstrate their commitment to social and environmental issues, which customers have become conscious of.
An example can be cited of Patagonia, which has made a commitment to sustainable materials in its outdoor gear.
This approach was well-received by its customers as a shared value.
Similarly, Body Shop, Unilever and Coca Cola continue to dominate the market with strong customer loyalty.
Green marketing is a powerful tool for companies looking to appeal to environmentally conscious consumers.
By implementing sustainable practices, companies can build a positive reputation, reduce costs and satisfy consumers.
However, there are also several challenges associated with green marketing, such as a lack of consumer education and regulatory restrictions.
Companies that want to succeed in green marketing must navigate these challenges while remaining transparent and true to their commitment to sustainability.
By doing so, they can build a loyal customer base and gain a competitive advantage in the marketplace.
While green or sustainability marketing provide numerous benefits, there can also be challenges in developing markets/countries.
In these markets, there can be consumer appreciation challenges, lack of demand and regulatory restrictions on green products.
Regulators may require these products to be certified for the green credentials that they purport.
In Zimbabwe, this is where the Standards Association of Zimbabwe (SAZ) is expected to play a role in validating green credentials of locally manufactured products.
Bureau Veritas can also inspect imported manufactured products.
For properties, the Green Building Council of Zimbabwe would validate before certification.
However, green marketing can be abused with “greenwashing” if national regulators do not keep an eye.
There are many consumers who may not be aware of the environmental and personal impacts of the products that they purchase every day.
In this regard, consumer education becomes fundamental.
In Zimbabwe, bodies like the Consumer Council of Zimbabwe could be instrumental in raising stakes in educating markets to consider green or eco-friendly profiles of various products consumers buy.
However, it is important for companies to enhance sustainable marketing practices that educate consumers on the environmental credentials of their products.
For example, organic food company Whole Foods created educational programmes to help consumers understand the benefits of organic foods and the environmental impacts of conventional agriculture practices.
In Zimbabwe, Ecochick, which provides sustainable and eco-friendly poultry solutions, promotes organic poultry feeds manufactured using renewable energy sources.
While there has been a growing trend towards sustainability, not all consumers are willing to pay a premium for eco-friendly products.
It is crucial for companies to test the market and determine the demand for sustainable products before investing heavily in green marketing.
A great example is Tesla, which has successfully built a brand around its electric vehicles.
By testing the market and identifying demand, Tesla has been able to create a successful business model built around sustainability.
Sustainability is a complex issue, which can be associated with regulatory restrictions to avoid greenwashing by companies.
In many cases, governments tend to impose regulations to protect consumers from being cheated by unscrupulous companies.
Companies that want to succeed in green marketing should be honest and comply with regulatory requirements.
Further, they must be truly committed to sustainability.
A good example is Ikea, which committed to using renewable energy in all of its stores in 2020.
The company has had to navigate complex regulatory systems to achieve this commitment.
Perhaps the most significant challenge facing green marketing is greenwashing, which is the practice of promoting eco-friendly practices without being honest to the commitments and required standards.
Companies that engage in greenwashing can damage their reputations and alienate environmentally conscious consumers.
To avoid greenwashing, companies must be transparent about their eco-friendly practices and commitments.
A great example of this is Seventh Generation, which has built its reputation on eco-friendly cleaning products. The company is transparent about its sustainable practices and commitments, earning the trust and loyalty of environmentally conscious consumers.
In conclusion, there are several examples of green marketing initiatives in Zimbabwe, with companies promoting sustainability and social responsibility around their products.
These initiatives are helping to reduce the carbon footprint of various industries and improve the quality of life of Zimbabweans.
As the world continues to face environmental and climate challenges, green marketing will become increasingly important. Businesses can be at the forefront of promoting sustainable development through their products and services.
Chikara is a business development officer at the Institute for Sustainability Africa, an independent think tank and research institute. These weekly New Horizon articles, published in the Zimbabwe Independent, are coordinated by Lovemore Kadenge, an independent consultant, managing consultant of Zawale Consultants (Pvt) Ltd, past president of the Zimbabwe Economics Society and past president of the Chartered Governance & Accountancy Institute in Zimbabwe (CGI Zimbabwe). — kadenge.zes@gmail.com or mobile: +263 772 382 852
