Sustainable Marketing: A Case Study of Adidas and H&M Group

Running head: SUSTAINABLE MARKETING
SUSTAINABLE MARKETING
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Background of the case:.........................................................................................................2
Fundamental approaches of circular economy.......................................................................5
Value Dimensions:.................................................................................................................6
Value proposition-..............................................................................................................6
Value creation and delivery-..............................................................................................7
Value capture-....................................................................................................................7
Conclusion..................................................................................................................................8

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Introduction
The marketing approach when an organization concentrates on environmental and
social investments in the form of marketing strategy is known as sustainable marketing
(Chakrabarty 2015). With the increasing rate of negative impact on the environment,
organizations of the 21st century are being criticized for the choice of energy usage and
operational functions. Due to this realization, organizations are incorporating sustainable
marketing in their marketing infrastructure. The purpose of the paper is to demonstrate a
discussion regarding the concerns of resources of two brands and the manner in which the
brands are using and managing the resources in their business activities. The two brands
selected for this paper is Adidas and H&M group. In this report, the fundamental approaches
for addressing the slow, close and narrow resource loops will be presented. The paper will be
concluded by presenting a summary for the main resources usability and managing initiatives
of Adidas and H&M group.
Discussion
Background of the case:
The case deals with the linkage sustainability approach and marketing management.
Marketing management includes various strategies to respond to external environmental
needs of the market. The case depicted that over the period of 15 years, the production of
clothing items has doubled (Dhakatribune.com 2019). The reason behind this situation is, the
increasing trend of choosing fast fashion brand due to their wide-range price offerings and
due to the linear production system of clothing brands. The linear clothing production leads
to the wastage of produced goods, which in return leads to the outcome of unattained
economic opportunity (Dhakatribune.com 2019). The organizations are producing clothing
items from non-renewable resources, and those produced goods are then dumped to the
landfills after usage by consumers, resulting in land pollution, resource wastage and

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unattained economic opportunity of selling the same clothes after recycling or reusing
approach (Dhakatribune.com 2019). According to the data in the case, most of the fast
fashion produced items are disposed of in the landfills in the form of waste within a year.
With the environmental damage, the linear economy model also harms the societal state.
According to the case, only one percent of material utilized while producing clothes are
recycled, resulting in approximately a loss of around 100 billion. The case depicted the
significance of employing a circular economy by changing the marketing and operational
initiatives and approaches based on sustainability (Dhakatribune.com 2019).
Usage and Management of resources:
The circular economy involves a circular strategy of reusing, remaking, repairing,
remanufacturing, recycling and refurbishment for creating a closed loop. The entities
involved in the circular economy involves, manufacturer, consumers, reuse-recycle-repair by
consumers and businesses, recycling sector and again start the cycle by manufacturing Coste-
(Maniere et al. 2019).
In the context of Adidas, the company have launched Adidas Futercraft Loop by
recognizing the negative impact of the linear economy on the environment and in business.
This is the first model for running shoe by Adidas that is designed for circular lifecycle. The
material engineer at Adidas explained that, after wearing the shoe to its full potential, the
shoes need to be returned to us from customers for the next step of recycling the products.
The recycling process is then followed by remaking or manufacturing. The brand has
launched this approach at a larger scale to improve the opportunity response and
environmental impact of the organization (Lewandowski 2016). The company launched a
cent percent recyclable shoe with the purpose of unlocking circular future in the sports
industry (Circulareconomy.europa.eu 2019). This product line is focussed at the concern
arising from plastic wastes and linear economy. Overutilization of resources is another
resource issue that the company aims at addressing. The resource utilization issue also