The Significance and Implementation Methods of Sustainable Marketing: A Case Study of Procter & Gamble

Research Article
Open access

The Significance and Implementation Methods of Sustainable Marketing: A Case Study of Procter & Gamble

Yitang Zhao 1*
  • 1 University of Science and Technology Beijing    
  • *corresponding author pamphlw@163.com
AEMPS Vol.84
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-433-0
ISBN (Online): 978-1-83558-434-7

Abstract

The necessity of protecting the environment is clear due to the escalating worldwide environmental problems and the growing environmental consciousness among consumers, making it a vital topic of discussion for humanity. Businesses should strive to achieve maximum economic benefits while also taking into account environmental considerations to ensure a sustainable and optimal solution that benefits both the economy and the environment. Sustainable marketing has evolved as a new concept to assist firms in their operations. This paper examines the importance and strategies for sustainable marketing through methods of literature analysis and case study, such as Procter & Gamble. This study concludes that sustainable marketing benefits organizations by improving their brand image, increasing consumer loyalty, and steering their development towards more ecologically responsible practices. Sustainable marketing has problems such as significant expenditure and uncertain returns on benefits. Thus, organizations should assess themselves before developing precise sustainable marketing strategy. The primary contribution of sustainable marketing is to enhance firm economic benefits while also significantly contributing to environmental conservation.

Keywords:

Sustainable Marketing, Procter & Gamble, Low-carbon Products, Sustainable Innovation

Zhao,Y. (2024). The Significance and Implementation Methods of Sustainable Marketing: A Case Study of Procter & Gamble. Advances in Economics, Management and Political Sciences,84,5-9.
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1. Introduction

The growth of human civilization involves adapting to and changing the environment, which also leads to its degradation and alienation [1]. With escalating global environmental concerns and growing consumer focus on sustainable development, firms must adapt their marketing methods. Sustainable marketing is a strategy that aims to balance commercial goals with environmental protection to promote long-term sustainable development. This marketing strategy prioritizes existing consumer demands while also guaranteeing the long-term environmental sustainability. Procter & Gamble earned commercial success through the development of environmentally friendly products, effective resource usage, and promotion of green consumption, leading to sustainable marketing and development.

Scholar You Jing suggests that small and medium-sized firms should take a long-term strategic approach, prioritize consumer and societal advantages, embrace a sustainable marketing idea, and concentrate on brand development and maintenance [2]. Effective marketing decision-making strategies should be developed based on five aspects: green marketing, personalized marketing, humanized marketing, moderate marketing, and relationship marketing. Scholar Yang Yongchao's research recommends that enterprises, merchants, customers, and governments enhance their practices in five areas: green marketing, humanized marketing, personalized marketing, moderate marketing, and relationship marketing. This method strives to advance the economy, society, and ecology simultaneously through a sustainable e-commerce development model [3].

This paper employs literature review and case analysis to examine the implementation methods of sustainable marketing and their effects on businesses and society. It offers theoretical foundations and practical guidance for enterprises to adopt sustainable marketing strategies. This study provides businesses with methods to tackle global sustainable development concerns by encouraging them to engage in environmental protection and social duties alongside commercial pursuits. It has significant consequences for advancing sustainable economic growth, ensuring social fairness, and protecting the environment. It also has substantial theoretical and practical importance for promoting the execution of worldwide sustainable development initiatives.

2. Overview and Significance of Sustainable Marketing

2.1. Overview of Sustainable Marketing

Sustainable marketing refers to a company's commitment to meeting consumer requirements while also pursuing sustainable development in ecological, economic, and social aspects throughout its production and operation. It focuses on creating enduring ties with customers while also considering societal progress [4]. This notion encompasses environmental preservation, economic advantages, and social responsibility, with a focus on ensuring the long-term sustainability of company activities rather than solely maximizing short-term profits. Sustainable marketing focuses on environmental, social, and economic elements, encouraging firms to prioritize long-term societal and environmental well-being when promoting their products or services.

Conventional marketing strategies were criticized for not supporting the preservation of natural resources and sustainability due to the adverse impact of most items on the environment. In 1987, Brundtland introduced the notion of "sustainable development" in the report Our Common Future, highlighting the importance of meeting current demands without jeopardizing the ability of future generations to fulfill their own needs. Sustainable marketing has evolved steadily alongside ongoing human growth.

Sustainable marketing promotes the use of eco-friendly products, waste reduction, pollution prevention in production, and the adoption of renewable energy and efficient resource management. This methodology can reduce the adverse effects of corporate activities on the natural environment and safeguard the health and variety of ecosystems. This model also facilitates the green transformation of economic activities by assisting businesses in entering new markets and generating new customer needs through innovation and efficiency enhancements, thereby stimulating economic growth and employment. Businesses are urged to invest in clean technologies and sustainable solutions under this marketing approach to lower long-term expenses and boost international competitiveness. Sustainable marketing fosters collaboration among countries globally on sustainable development objectives, establishing a universal agreement and joint efforts to minimize environmental harm.

2.2. Significance of Sustainable Marketing

Businesses that implement sustainable marketing techniques promote their innovative and eco-friendly products and services while also communicating environmental values to consumers on a societal scale. This promotes consumer knowledge of environmental issues and sustainable consumerism, urging consumers to evaluate the potential environmental effects of products while making purchasing choices. It promotes corporations to work together with local communities to support community development initiatives like education, health, and infrastructure building. Participation can strengthen the social image of the business and immediately improve the quality of life for neighborhood people. Sustainable marketing can serve as a catalyst for social change by motivating firms and consumers to engage in activities that safeguard the environment, mitigate environmental harm, and tackle social inequality and injustice. Society may progress towards a fairer, eco-conscious, and sustainable path by endorsing sustainable products and services.

Sustainable marketing at an economic level can stimulate innovation and financial advantages, motivating businesses to implement more effective and eco-friendly approaches in design, production, and sales operations. This encourages innovation in technology and business models. This innovation minimizes resource wastage, reduces costs, and improves economic efficiency for businesses. Sustainable marketing enables businesses to appeal to environmentally conscious and socially responsible consumers, therefore capitalizing on new market prospects. As consumer knowledge grows and consumption patterns change, the market's potential will be significant, benefiting firms in attaining sustained growth. This marketing strategy can motivate consumers to embrace more sustainable purchase habits, reinforcing their dedication to environmental conservation and in turn motivating more firms to implement sustainable practices. Sustainable marketing can promote ecologically friendly products and services that efficiently utilize resources, minimizing dependence on natural resources and encouraging resource recycling. It is essential to prevent resource depletion, price volatility, and secure a stable long-term resource supply.

3. Methods for Implementing Sustainable Marketing

Product Development: Sustainable products use natural raw and auxiliary materials that are harmless or minimize harm to consumer life and health; their processing exerts less pressure on the environment [5]. Production design should prioritize easy disassembling, repair, and upgrade of items to prolong their lives and minimize waste. Suppliers prioritized should adhere to sustainable production methods, including the use of renewable energy, water consumption reduction, and waste emission minimization. Energy-saving technologies and techniques should be implemented in production to decrease energy usage, optimize processes to limit waste generation, and enhance material utilization. Durable, easy-to-maintain, and repairable items in product development and design promote prolonged consumer use, minimizing resource wastage from frequent replacements. Enhancing products or services with upgrade features might reduce the need for frequent product replacements. Additionally, product recycling services can be expanded, offering incentives to consumers, encouraging them to develop a habit of recycling products for reuse.

Marketing: Businesses should integrate sustainability into their brand story and values, communicating their commitment to environmental protection and social responsibility to consumers; actively disclose the company's production processes through reports and social media channels to enhance brand transparency, making consumers believe in the company's sustainable marketing approach. They can also utilize eco-labels or third-party certifications to enhance the credibility and appeal of their products, emphasizing the environmental and social responsibility advantages of their products, establishing a brand image for eco-friendly products, reinforcing their features and advantages, and striving for competitive initiative [5].

Channel Management: Businesses should choose suppliers and partners who follow sustainable production and operation criteria, such as firms accredited in fair trade or green energy. Periodic evaluations of these providers and partners are essential. Environmentally friendly logistics solutions are crucial, emphasizing low-carbon transportation techniques like rail instead of road transport, and utilizing electric or hybrid cars. Utilize advanced logistics management software to design and optimize delivery routes, avoiding unnecessary travel, therefore saving fuel usage and carbon emissions. Minimalist packaging design is crucial, using recyclable, biodegradable, or regenerated materials to reduce packaging material while maintaining product safety. Energy-efficient lighting and smart management technologies can be used in warehouses to decrease energy usage and optimize space utilization.

Communication and Dissemination: Businesses can share stories of sustainable development through various digital channels such as corporate websites, social media platforms, blogs, and online advertising, while also using traditional media channels like television, and advertisements to broaden the reach of sustainable marketing messages and attract consumer attention. However, it is important to be sincere in communication, refraining from exaggeration or misleading consumers, and ensuring that all messages and promotions are factual and can be verified. Companies can encourage sustainable lifestyles among consumers by actively engaging in and supporting community activities as part of their sustainable marketing efforts. Businesses can engage in environmental events like tree planting, river cleaning, and marathons to enhance the effect and feasibility of sustainable marketing concepts by involving community members and consumers.

4. Case Study: Procter & Gamble

Procter & Gamble is one of the world's largest daily chemical product companies. As a major multinational corporation, P&G at its peak had over 300 brands across 16 categories including personal care, baby care, and household furnishings [6].

First, Procter & Gamble has made significant breakthroughs in sustainable product innovation, consistently reducing the environmental impact of its products through environmentally friendly design. By integrating sustainability into product, packaging, and supply chain innovations, it offers consumers attractive, high-quality products while better protecting the environment [7]. Additionally, a significant portion of the company's operations involves energy consumption, making the development and use of renewable energy an important means to achieve sustainability goals [8]. The company continually develops more efficient products to reduce energy consumption by consumers during product use.

Second, P&G chooses partners who follow environmental and social responsibility standards and conducts routine reviews and audits to confirm they align with the same environmental values and criteria. The company pledges to enhance its openness by openly revealing its raw material origins and supply chain procedures, in turn bolstering trust from consumers and investors in the brand. Furthermore, Procter & Gamble informs consumers about the significance of sustainable living through several platforms and events, motivating them to embrace more environmentally conscious lives. For example, by engaging in public welfare initiatives focused on water conservation, energy efficiency, and recycling through its various brands. The information provided ensures accurate product usage and instructions to optimize product efficiency while reducing environmental effect. This allows consumers to cultivate eco-friendly habits, so enhancing environmental protection from the consumer's point of view.

Procter & Gamble established aggressive objectives to decrease its brand's carbon footprint, aiming to achieve carbon neutrality in its operations and lower energy usage during product use. P&G is dedicated to reaching zero manufacturing waste and decreasing plastic usage by innovating packaging and enhancing its recyclability. For instance, in reducing waste emissions, waste from shampoo production is converted into bricks, enabling 16 P&G factories to achieve virtually zero waste to landfill in their production processes [8].

5. Conclusion

Businesses can showcase their dedication to environmental protection by incorporating sustainable marketing practices, which can enhance customer and public trust, ultimately setting them apart in the market. Sustainable marketing allows organizations to create new products and services, appeal to diverse consumer segments, and consequently access untapped markets. Sustainable marketing can increase customer knowledge of environmental protection by educating and spreading information, therefore supporting ecologically friendly consumption methods and social responsibility. Furthermore, it can mitigate the adverse effects of production and consuming activities on the environment, thereby effectively safeguarding it.

Sustainable marketing plays a crucial role in creating a more sustainable future through minimizing environmental impacts, improving social accountability, and fostering a harmonious blend of economic advantages. Implementation strategies encompass product sustainability, sustainable supply chain management, consumer participation and education, social responsibility, and the utilization of ecologically friendly resources. The chosen scenarios in this paper are representative, nevertheless, there are constraints in all elements of sustainable marketing, which may result in insufficient in-depth examination in certain areas. Future study should focus on gathering and examining additional cases from many industries and countries, particularly those organizations with extensive expertise in sustainable marketing strategies, to achieve a more thorough and profound understanding. Furthermore, the research on technology innovation and application lacks comprehensiveness. A comprehensive comprehension and assessment of these technologies are crucial to assist firms in improving their sustainability capabilities. Future studies should thoroughly examine these developing technologies.


References

[1]. Dong Junwu. Research on Green Marketing in the Era of Sustainable Development [D]. Wuhan University of Technology, 2002. p.1/60.

[2]. You Jing. Research on Sustainable Marketing for Small and Medium-sized Enterprises Based on the E-commerce Ecosystem: Taking Alibaba's E-commerce Ecosystem as an Example [J]. Business Economy, 2017, (19):84-87. p.1/4.

[3]. Yang Yongchao. Application and Value of Sustainable Marketing Concepts in E-commerce Development [J]. Reform and Strategy, 2015, 31(12):141-145. DOI:10.16331/j.cnki.issn1002-736x.2015.12.033. p.1/5.

[4]. Huang Ruqian. Research on Sustainable Marketing Strategy of Fast Fashion Brands Based on the ABC Attitude Model [D]. Wuhan Textile University, 2021. DOI:10.27698/d.cnki.gwhxj.2021.000021. p.11/61.

[5]. Yang Shuqing. How Businesses Can Implement Sustainable Marketing Strategies [J]. Business Times, 2004, (18):23-33. p.1/2.

[6]. Yuan Mingyang. Study on the Brand Spillover Effect under Multi-Brand Strategy [D]. Tianjin University, 2022. DOI:10.27356/d.cnki.gtjdu.2022.000905. p.31/85.

[7]. Song Wenqi. Procter & Gamble (PG) [J]. China Paper Industry, 2023, 44(03):14-16. p.3/3.

[8]. Tang Ming. An Overview of Sustainable Development at Procter & Gamble [J]. China Cleaning Industry, 2012, (10):37-39. DOI:10.16054/j.cnki.cci.2012.10.006. p.3/3.


Cite this article

Zhao,Y. (2024). The Significance and Implementation Methods of Sustainable Marketing: A Case Study of Procter & Gamble. Advances in Economics, Management and Political Sciences,84,5-9.

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About volume

Volume title: Proceedings of the 2nd International Conference on Management Research and Economic Development

ISBN:978-1-83558-433-0(Print) / 978-1-83558-434-7(Online)
Editor:Canh Thien Dang
Conference website: https://www.icmred.org/
Conference date: 30 May 2024
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.84
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Dong Junwu. Research on Green Marketing in the Era of Sustainable Development [D]. Wuhan University of Technology, 2002. p.1/60.

[2]. You Jing. Research on Sustainable Marketing for Small and Medium-sized Enterprises Based on the E-commerce Ecosystem: Taking Alibaba's E-commerce Ecosystem as an Example [J]. Business Economy, 2017, (19):84-87. p.1/4.

[3]. Yang Yongchao. Application and Value of Sustainable Marketing Concepts in E-commerce Development [J]. Reform and Strategy, 2015, 31(12):141-145. DOI:10.16331/j.cnki.issn1002-736x.2015.12.033. p.1/5.

[4]. Huang Ruqian. Research on Sustainable Marketing Strategy of Fast Fashion Brands Based on the ABC Attitude Model [D]. Wuhan Textile University, 2021. DOI:10.27698/d.cnki.gwhxj.2021.000021. p.11/61.

[5]. Yang Shuqing. How Businesses Can Implement Sustainable Marketing Strategies [J]. Business Times, 2004, (18):23-33. p.1/2.

[6]. Yuan Mingyang. Study on the Brand Spillover Effect under Multi-Brand Strategy [D]. Tianjin University, 2022. DOI:10.27356/d.cnki.gtjdu.2022.000905. p.31/85.

[7]. Song Wenqi. Procter & Gamble (PG) [J]. China Paper Industry, 2023, 44(03):14-16. p.3/3.

[8]. Tang Ming. An Overview of Sustainable Development at Procter & Gamble [J]. China Cleaning Industry, 2012, (10):37-39. DOI:10.16054/j.cnki.cci.2012.10.006. p.3/3.