Sustainability marketung Free Essays

string(227) " product line will continue to be consistent in quality, functionality as well as technical features of the current existing product line but will also be environmentally sustainable through the use of 100% recycled materials\." This report analyses SPINE, an online Korean company specializing in quality mobile phone accessories and its plan to enter the sustainability market. The report further analyses the company’s mission statement that will set the course for sustainable development. It is recommended that SPINE adopts a sustainable strategy and launch new line of CEO-friendly products that is a variant of three of Spine’s best-selling phone cases, â€Å"Neo Hybrid†, â€Å"Slim Armor† and â€Å"Tough Armor†. We will write a custom essay sample on Sustainability marketung or any similar topic only for you Order Now These new phone cases will be made out of 100% recycled materials. This report will further evaluate the marketing mix strategies involved in implementing sustainable development such as the target market, product, price, promotion and distribution. The report finds that with the company shifting towards a CARS policy, the new sustainable product line will now be targeted at technology savvy Gene X and Gene Y consumer age between 22 to 45 seeking green alternatives as well introducing green alternative to already existing customers. The company is to adopt a differentiation strategy to challenge the current market leader head on in this fairly new market. Pricing will continue to be at a premium but a proportion of profit earnings (20%) will be contributed to WFM for funding sustainable campaigns. Distribution strategy will adopt the use of reverse logistic to recycle overstocking of inventory so that raw materials can be reused for future products. CONTENTS INTRODUCTION MARKET BACKGROUND The mobile phones market has received substantial growth in the past years due to the technological advancement as well as the introduction of smart phones becoming an essential part of a person’s life in today’s digitally connected lifestyle. Along with he progressive growth in smart phone sales around the globe, the market for mobile phone accessories has also received a direct boost in growth. Primarily driven by the uprising sales in smart phones, the market for mobile phone accessories is projected to reach $ASS 84. 6 billion by the year 2018. This growth is akin to the fact that currently there are over 5. 9 billion mobile phone subscribers worldwide against the world population of 7. Billion people, mirroring a penetration rate of over 80% (Global Industry Analysts, 2012). On top of adding protection to your phone, mobile hone accessories also provide additional customizable and personalization for the user and this creates opportunities for accessories focused on aesthetic. COMPANY BACKGROUND Launched in 2004, SPINE is an online South Korean company specializing in the design of various mobile accessories such as screen protectors, cases, and utility bags for a variety of phones, tablets, and laptop. The company offer products of quality and innovation at a premium price range and is targeted towards the high end consumer market. Some of its notable products include the GLASS series range of . Mm thick tempered glass screen protectors manufactured at different shapes and sizes to fit popular smart phone models and also a line-up of high quality polycarbonate phone casings and frames that are light in weight and shock absorbent. In reaction to global awareness, SPINE has realized the need to cater its products to the shift in consumers’ mindset towards green products. This means to re-establish the current goals and commitment of the company and also to create a new product line to pander towards a new market segment. The objective is to increase the rand’s product reach and also employ ethical and green policy that will bring a positive image to the brand as a company who supports in the sustainability of the world. AIM This report aims to establish a good sustainable strategy that will aid SPINE in the launch of a new product range of mobile accessories that will be 100% environmentally friendly. This will redefine SPINE as sustainable company that will set itself apart from its competitors as well as enrage new customers to the brand through its appeal towards environmental sustainability. This report will state the recommendations for change required to proceed with the munch of this new product such as altering and creating new marketing mix strategies for SPINE to appeal to a new audience. This includes defining a new target market, as well as implementing a suitable product, pricing, and promotion and distribution strategies for the new product line. 2 MISSION STATEMENT In the past, companies were narrowly concern the quantity of production and manufactures only expanded supply and lower cost which burden a huge impact on environment. Nowadays, mass production expanding led to overcapacity in various markets as supply exceeds demand. The sustainable marketing focuses on the target roof of green consumers who would be willing to pay premium prices for more environmentally friendly products. (Frank-Martin Bell and Ken Appetite 2009, pap) SPINE ignited the design of mobile phone markets revolution in the sass with the mobile phone accessories. Today, SPINE continue to lead the industry in innovation with its mobile phone accessories into sustainable market in order to paying more attention for responsibility to society, and ethical concerns about the social and environmental impacts. RECOMMENDATION FOR CHANGE In order to create sustainable development, SPINE will need to look into the economic, environmental and social factors that will contribute to this change. As Creating sustainable development is to meet the needs of the present without compromising the ability of future generations to meet their needs (The Borderland report ‘Our Common Future’ 1987), it is crucial for the company to not only look into environmental friendly alternatives but also to support the society through social responsibility such as equality, poverty etc. ND at the same time generating a sustainable profit for economic growth. For this to happen, it is recommended that SPINE adopts a sustainable development tragedy by promoting a new product line that will increase public awareness towards Spine’s decision in adopting a Corporate Social Responsibility CARS policy. This will be accomplished by reinventing three of its most popular product range, namely â€Å"Neo Hybrid†, â€Å"Slim Armor† and â€Å"Tough Armor† and creating new CEO- friendly variants for the respective product. The new product line will continue to be consistent in quality, functionality as well as technical features of the current existing product line but will also be environmentally sustainable through the use of 100% recycled materials. You read "Sustainability marketung" in category "Papers" For example, the Neo-hybrid phone casing CEO variant will continue to provide protection, shock absorption and customization through interchangeable frames and will also be made from 100% recycled parts. The new product line will be marketed towards environmentally aware consumers; it will also reach out to new users within the market to expand total demand. The introduction of new sustainable products will act as a stepping stone for Spine’s to convert more of its existing products into green products in the future and to fully incorporate sustainable development in all of its product range. In addition to helping the environment, SPINE has paired up with World Wide Fund for Nature (WFM) to engage in humanitarian activities through contribution of 20% of their product’s earning in funding charity campaign. Economically, with the cost in research and development as well as the cost of outsourcing recycled materials from various suppliers, SPINE will need to set a maximum cost of goods sold COGS no higher than 30% of mark-up to be able to generate a healthy profit in order to sustain the business. By satisfying the all three elements in creating a balanced sustainable development Truckee, SPINE will create a strong foundation in the shift towards a sustainable solution. MARKETING OBJECTIVES While Spine’s primary marketing goal is to offer products for the mobile phone and gadgets not only from being scratched or impacted but also, as there are potentially a sizeable market for more sustainable products, shifting our marketing focus towards targeting on green market have been identified as a great opportunity. Presently, Spine’s aimed at people between the ages of 22-45 who are searching for functional and sustainable protection covers. If SPINE can put forward an agenda uh for seeking the environmental, safe and recycle products would enable SPINE to start enhancing its positive image as an CEO-friendly company. The following are important objectives for Spine’s green product range. INCREASE MARKET SHARE Conventionally, marketing performance is only concern about economic and growth- oriented issues, managers are not aware of considering in sustainability objectives. Presently, marketing objectives have to be provided by green materials. Frank-Martin Bell and Ken Appetite, 2009) SPINE should increase market share in era of sustainability from 0% into 10%. RAISE PUBLIC CUSTOMER SATISFACTION To connect with consumers by taking advantage of social media could increase more public awareness, faith, loyalty, and by creating higher customer popularity results for making high level of benefits. There are more modern communication tools in today’s society. For example, Faceable is the most popular tools with over 300 million users; SPINE should follow closely with the development of modern communication channels. Social media is the vital tools being used for communicating which provide the fast-paced information from global online channels, making consumers get more acknowledge with the brands. The Faceable online page posts photos, activities, innovations of new products and customer comments. The customers of SPINE on the Faceable can post their individual products photos, information, and impressions in order to let the company to acknowledge immediately. SPINE can then reply to the comments and provide more advices about the products, making the communication more effectively and increase customers’ satisfaction about the products. Specializing on social media will allow SPINE enhance brand awareness and gain more satisfactions from customers. REDUCE THE POTENTIAL NEGATIVE IMPACT ON HEALTH Researches have shown that mobile phone accessories that are made from mass- production plants using cheap materials in the manufacturing process can generate CHIC, a hazardous gas in which if it reaches the point at 0. OMG/mm are very harmful to the human body and also to the environment. Spine’s production plants are closely monitored to ensure all materials are quality controlled and that all emission levels are kept at or below industry levels. All of the recycled materials in production process goes through the same monitoring and control to ensure all the mobile hone covers and gadgets match the highest safety standards not only to keep customer more safe and healthy, but also to reduce our carbon footprint on the environment. MARKETING MIX STRATEGIES Camphor Bandage, (2005) mentions in the Journal â€Å"Green Marketing Philosophy’ that if marketing philosophy is a process of which the firm conceives the consumer into an exchange relationship whereby the firm offers a product to the market, which is driven by the desires of the consumer and aims to fulfill that desire in the most beneficial way for the entity or company. Then green marketing philosophy can be scribed as the exchange relationship that goes beyond the current needs of the consumers in terms of addressing the social interests in the conservation and protection of the natural environment at the same time. From a green marketer’s perspective, as Fuller (1999) describes, a ‘new competitive game’ is at play as there are three parties that are involved in the exchange relationship: the company, the consumer and the environment. Green marketing goes beyond the commercial exchange of fulfilling a desire of the consumer, it is a way of understanding the company’s relationship with society in general. With that in mind, green marketing an be found within the approach of social marketing (Kettle, 1995), it is a way of understanding the exchange relationship by planning, implementing and controlling a policy for product, price, promotion and distribution that at the same time fulfill customer needs and the objectives of the company while reducing any current or potential negative effects to the natural environment. TARGET MARKETS The previous target market for SPINE products are technology sax. N. Y Gene X and Gene Y consumers between the ages of 18-45. Primarily enthusiasts for electronic gadgets such as smart phones, tablets and laptops. These consumers seeks for accessories that can not only protects their favorite gadgets, but also be able to do it in a way that allows them to express who they are from Spine’s variety of products that offers form, functionality and protection through innovative designs and materials. As the company re-defines itself through the launch of a new product range of 100% environmental friendly mobile accessories that are made from recyclable materials. The new target market is now aimed at people between the ages of 22-45, who are seeking for greener alternatives to accessories their gadgets without sacrificing quality and functionality. Consumers in their early ass’s start to get more influence from the importance of green sustainable products, also the income level is another factor of consideration as people get older, their disposable income are likely to increase along with the level of green-awareness. SPINE’S green-product range consumers represent a demographic group of well-educated successful young adults, single or married with an annual household income range of ADD $40,000 – $100,000 or more. They are particular about their taste in styling and self-image aware, trendy and strives for high-quality innovative and sustainable products on the racket. PRODUCT STRATEGIES With over ten years in the industry, SPINE has established a solid reputation through its design and innovation. The success of SPINE is a direct result of the fast-growing smartened and tablet users around the globe (SPINE, 2014). With this in mind, SPINE have discovered that there are enormous market opportunities for green-sustainable gadget accessories as there are currently very few numbers of competitors in this segment, for example:, Case-mate, Groveled, Minimize and Ore that produces phone cases and accessories from part to 100% recycled materials, wood and bamboo. SPINE aims to challenge the market leaders by differentiation and with plans to become the market leader of this segment. In order for the company to differentiate from other competitors, it aims to use 100% recycled materials in the production of our green product range. The recycled materials will come from industry and household wastes as well as recycling old mobile phones, phone cases and other electronic devices. The green range products will not substitute quality, functionality or appeal for using recycled materials, in fact, all of our green products are able to keep all of the original features so our customers can est. assure that they are getting high quality products while contribute to our mission to raise awareness and the importance for using sustainable phone and gadget accessories. SPINE will also donate 20% of profits from its green range to WFM and other organizations for research and conservation purposes. PRICING STRATEGIES The prices of our green sustainable product range are set accordingly with the competition in mind, also to cover the initial research and development costs as well as on-going costs associated with recycled materials. The company does not aim to hare a high premium over the green label, nor does it attempt to lower the price in order to sell high quantities of products. It is set at a price where consumers feel that it is reasonable and will be comfortable of purchasing knowing that a large portion of the profits will be used for a better cause such as further research for more sustainable products and in forms of donations to conservation organizations such as the WFM. PROMOTION STRATEGIES SPINE currently has 7 sub divisions apart from the Korean headquarters in different countries around the world which are USA, Japan, Hong Kong, I-J, Turkey, China and Taiwan. Each of the divisions has its own authorized retailers and resellers. These divisions are responsible to interact and provide information with the consumers, retailers and resellers whenever it launches a new product through various methods such as direct mail, face to face, e-mail and through social media sites such as Faceable and twitter. All of Spine’s product range can be found on the division countries respective websites (SPINE, 2014). Promotional activities will take place before the launch of the green product ranges to establish awareness for sellers and errs to grasp an idea of what is to be released and how it is differentiated from the competitor’s products, training programs will be conducted by trained staff assigned from Korean, American and Japanese headquarters to prepare each division’s in-line managers and sales personals to be able to pass on to consumers and individual retailers on the features of the new sustainable products. After launch promotions will include forms of discounts, a further 5% discount for customers who trade-in an old phone case when they purchase a product from the green range at participating detail stores. These promotional activities will be carried out through methods mentioned above. As SPINE depend heavily on online sales through its own websites as well as liaising with Amazon and eBay, online promotional activities through these websites, e-mail and social media are vital to keep up to date with the company’s goals and visions while constantly seek better ways of improving existing products to shift into the new green sustainable future of phone and gadget accessories. DISTRIBUTION STRATEGIES Currently, SPINE adopts direct marketing channels through online sales from its official weeping and also through third party online distributors such as eBay and Amazon. When adopting a sustainable distribution strategy, the company will look at providing biodegradable and recyclable packaging that enables overall volume reduction when transporting to serve the goal of sustainability. Materials used in the packaging will be in the form of lightweight recycled cardboard boxes that provides good protection but maintain flexibility when it comes to transport efficiency. Information and communication technology is also key to Spine’s sustainable striation as under overstock can be counter intuitive in reaching the goal of creating a sustainable framework. As SPINE uses short distribution chains (products are shipped directly from their warehouse to the customer’s doorsteps) good coordination can increase efficiency, but it should be noted that outsourcing suppliers for recycled materials should be monitored and well communicated to avoid over or under stock in inventory. To counter this, reverse logistics will be implemented to recycle unsold goods so that materials can be reused for future products instead of scraping all unwanted inventory. In conclusion, Spine’s move to a more sustainable direction will set itself in a positive motion. How to cite Sustainability marketung, Papers