Sustainable Marketing Case Study 2022

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Running head: SUSTAINABLE MARKETING
SUSTAINABLE MARKETING: A CASE STUDY OF KELLOGG'S
Name of the Student:
Name of the University:
Author’s Note:

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1SUSTAINABLE MARKETING
Table of Contents
1.0 Introduction...........................................................................................................................2
2.0 Key Sustainability issues in the Singaporean Food Retail Industry..........................................3
2.1 Triple Bottom Line Approach to Sustainability....................................................................3
2.1.1 People.............................................................................................................................4
2.1.2 Planet..............................................................................................................................6
2.1.3 Profit...............................................................................................................................8
3.0 Recommendations for Kellogg's................................................................................................9
3.1 Marketing Mix.......................................................................................................................9
3.1.1 Product..........................................................................................................................10
3.1.2 Place..............................................................................................................................11
3.1.3 Price..............................................................................................................................11
3.1.4 Promotion.....................................................................................................................11
4.0 Conclusion...............................................................................................................................12
5.0 References................................................................................................................................13
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2SUSTAINABLE MARKETING
1.0 Introduction
As opined by Grant, Trautrims and Wong (2017), the concept of sustainability enables the
business corporations to attain the desired growth level without causing the over-exploitation or
for that matter the over-utilization of the natural resources of the planet. Vo, Hartmann and
Langen (2018) are of the viewpoint the extensive focus of business corporations on the aspect of
profitability and also the recent surge in the customer demand for the products or commodities
had given rise to the over-utilization of the natural resources which are being used as raw
materials by the corporations for the production of products or services. However, as argued by
Aschemann-Witzel et al. (2017), the major problem arises since these natural resources are
depleting at an alarming rate in the face of the extensive usage of the same and this had given
rise to the concern that the future generation would be deprived of the natural resources that the
present generation have access to. Thus, in order to attain long-term growth as well as
competitive advantage or for that matter sustainability it is important for the business
corporations to optimally utilize the natural resources of the planet.
Xue et al. (2017) have noted that the business entities are required to fulfill their
responsibility towards the environment as well as the society through the effective resolution or
for that matter the mitigation of the different issues that the environment or the society of the
nation of their operation face. Moreover, the different business corporations are trying to resolve
the societal or environmental issues like gender inequality, discrimination, climate change,
global warming and others through the different corporate social responsibility (CSR) initiatives
that they are taking in the present times (Kozlowski, Searcy and Bardecki 2016). However, the
business corporations try to resolve these issues only up to the point that it is profitability for
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them to do so and this in turn is one of the most important reasons for the ineffective resolution
of the different social or the environmental issues over the years. The objective of this paper is to
undertake a critical analysis of the key sustainability issues in the food retail industry of
Singapore through the usage of the case study of Kellogg's and offer relevant recommendation to
the corporation which it can follow for the attainment of sustainability.
2.0 Key Sustainability issues in the Singaporean Food Retail Industry
2.1 Triple Bottom Line Approach to Sustainability
Rut and Davies (2018) are of the viewpoint that one of the primary or the major reasons
for the extensive usage of the construct of CSR by the different business corporations can be
attributed to the benefits offered by the same along with the opportunity that the business
corporations get to effectively fulfill their obligations as business corporations. As discussed by
Greenland (2019), the usage of the framework of CSR offers the opportunity to the business
corporations to create value for their stakeholders (both internal and the external), increase their
revenue base, improve their brand image or branding, enhance their operations efficiency, lower
the different business risks that they face, effectively manage their intellectual and human capital
and others. However, in the particular context of the food retail industry of the nation of
Singapore it is seen that most of the corporations are simply disregarding the different
sustainability issues or for that matter relegating the framework of CSR to the background
(Darbari et al. 2018).
As per the results of a survey conducted by Fuji Xerox in the year 2018, 88% of the
business professionals agreed with the idea that CSR is an integral framework for the business
corporations to follow whereas 54% of the business professionals agreed to the idea that the

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4SUSTAINABLE MARKETING
adequate usage of CSR had helped them to enhance their revenue (Greenland 2019). However,
another survey conducted by Fuji Xerox in the particular context of the food retail industry of
Singapore reveals that only 8% of the food retail enterprises of the concerned nation consider
CSR as an integral part of their business activities (Rut and Davies 2018). Furthermore, the
results of another study reveals the fact that more than 69% of the food retail enterprises of
Singapore only spend around S$50,000 (US$44,026.4) on CSR related programs or initiatives
(Greenland 2019). These in turn had led to the ineffective resolution of the different issues that
the nation of Singapore had been facing over the years. In this relation, it needs to be said that
perhaps Kellogg's is one of the very few food retail enterprises operational in the nation of
Singapore which has a well-dedicated CSR program intended for the fulfillment of its
obligations as a business corporation and also meant to help it to attain sustainability (Rut and
Davies 2018). More importantly, the success attained by Kellogg's over the years in the nation of
Singapore is a case in instance regarding the success or for that matter the benefits that the
business corporations can derive through the adequate usage of the different CSR programs.
2.1.1 People
Koh et al. (2017) are of the viewpoint that the issues of gender inequality, discrimination,
ineffective management of diversity, gender pay gap and others are some of most important
issues related to people which are perceptible within the nation of Singapore. As discussed by
Cheah, Ho and Li (2018), these issues faced by the citizens of the nation of Singapore are
important since the bulk of the work within the spectrum of the different food retail enterprises
of the concerned nation is being performed by these people itself. The different business
corporations of the nation of Singapore with the exception of very few score very low on the
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GRI CSR index and this in turn had substantially reduced the overall score of the concerned
nation on the GRI CSR index which is being indicated by the below given figure-
Figure 1: Singapore on GRI CSR Index
Source: Rut and Davies (2018)
Kellogg’s is presently trying to address the societal issue of women inequality and also
gender pay gap through its different CSR programs. For instance, the CSR program “Women’s
Equality Day: Recognizing a True D&I Champion” had tried to foster gender equality not only
within the workplace of the concerned enterprise in the nation of Singapore but also within the
societal framework of the concerned nation as well (Kelloggs.com 2019). Furthermore, it had
been seen that adequate growth opportunities as well as training is being offered to the women
employees of the concerned corporation in Singapore so that they are being able to work on par
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with the male employees of the corporation and the also the corporation is being able to resolve
the issue under discussion here. In addition to these, it is seen that different initiatives are being
undertaken by the corporation under discussion here for the resolution of the evil of gender pay
gap. For instance, presently it had been seen that the corporation is offering wages solely on the
basis of the work that they perform within the corporation and entities of qualification and
experience is also being taken into account for the same (Kelloggs.com 2019). However, the
annual reports of the other business corporations of the nation of Singapore especially the ones
related to the food retail industry are not taking active initiatives for the resolution of these issues
because of the cost, resources and other complexities involved in the same.
2.1.2 Planet
Heizer, Render and Munson (2016) have noted that the business operations or the
activities of the business corporations cause a substantial of environmental pollution or damage
which is detrimental from the interest of the environment. As discussed by Eastham, Aguiar and
Thelwell (2017), in the face of this it had become imperative for the business corporations
especially the ones related to the food retail sector to take accountability for their business
activities or operations and thereby take the help of sustainable practices which in turn would
enable them to reduce the environmental damage caused by them. However, the problem arises
because the majority of the business corporations related to the food retail industry of Singapore
are presently focusing on the enhancement of their profitability at the complete disregard of the
damage that they are causing to the environment (Galvez, Mejuto and Simal-Gandara 2018).
This in turn had given rise to different kinds of environmental issues like global warming,
climate change, the melting of the polar icebergs and others which are threatening the long-term
growth or for that matter the survival of the planet (Peng 2019).

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7SUSTAINABLE MARKETING
Kellogg’s over the years had formulated different kinds of CSR programs which are
especially intended to improve the condition of the planet while ensuring the fact that the natural
resources of the planet are not being depleted at an alarming rate. In this relation, mention needs
of the programs of the corporation under discussion here which are specifically related to green
packaging, energy conservation, water preservation, effective waste management, recycling of
the waste generated by the corporation and others (Kelloggs.com 2019). An overview of the
different CSR programs that the corporation follows to contribute effectively towards the planet
and also the benefits that the corporation under discussion here had been able to get through the
usage of the same is being outlined by the below given figure-
Figure 2: CSR Programs of Kellogg’s related to the improvement of the condition of the
planet
Source: Kelloggs.com (2019)
The above mentioned initiatives undertaken by the business corporation Kellogg’s offers
dual benefits to them. For instance, on the one hand they had enabled the corporation under
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discussion to contribute effectively towards the improvement of the condition of the planet and
thereby improve their brand image significantly which in turn had helped it to enhance its
profitability in the recent times in the nation of Singapore (Greenland 2019). On the other hand,
the effective usage of different measures like energy conservation, water preservation, effective
waste management, recycling of the waste generated by it and others have lowered the
operations cost of the concerned corporation by promoting the optimal utilization of the
resources of the corporation which in turn had positively affected the financial returns earned by
the concerned corporation as well (Peng 2019). However, the other business corporations of the
nation of Singapore especially the ones related to the food retail industry barring a few simply
disregard these measures. Thus, although they have been able to attain a substantial amount of
success in the present times yet it is highly unlikely that they would be able to sustain this growth
in the longer run.
2.1.3 Profit
As per the narrow view of CSR, the primary objective or for that matter the obligation of
the business corporations should be to earn revenue and it is through the revenue earned by them
they need to contribute towards the economic growth of the nation of their operation (Frenkel,
Mamic and Greene 2016). As discussed by Anastasiadis, Tsolakis and Srai (2018), this is usually
being done by the different business corporations by way of the taxes, subsidies, import charges,
export charges and others that they pay to the national government of the nation of their
operation in lieu of getting the opportunity to conduct business in the concerned nation. In this
relation, it needs to be said that the total revenue generated by the business corporation Kellogg’s
for the year 2017 was US$ 12.923 billion worldwide and this amount is expected to grow in the
subsequent years (Kelloggs.com 2019). Furthermore, the concerned corporation had never been a
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defaulter when it comes to the payment of taxes, subsidies and other kinds of charges which it
owes to the national governments of the nation of its operation. However, the same cannot be
said regarding the other business corporations related to the food retail industry of the nation of
Singapore. For example, it had been found that the different business corporations of the nation
of Singapore manipulate the amount of revenue earned by them so as to evade the tax money,
subsidies, import and export charges and other they have to the national government (Ndraha et
al. 2018). This in turn had given rise to the situation wherein it is seen that the national
government of Singapore is unable to undertake different developmental projects which are
intended for the development of the concerned nation because of the shortage of funds or for that
matter financial resources (Popkin 2017).
3.0 Recommendations for Kellogg's
The business corporation Kellogg’s follows an effective CSR program when compared to
the other food retail enterprises operational in the nation of Singapore yet at the same time it
needs to be said that there is room for much improvement. Some of the most important measures
that the business corporation under discussion here can follow are listed below-
3.1 Marketing Mix
Grandhi and Singh (2016) have argued that the business corporations need to take into
account the aspects of ethics or morals for the conduct of their business operations and this in
turn would enable them to contribute effectively towards the resolution of the different
sustainability issues. In this relation, it needs to be said that one of the best ways through which
the business corporations like Kellogg’s and others can do is through the adequate usage of

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10SUSTAINABLE MARKETING
product, price, promotion and distribution strategies. A brief outline of these strategies that the
business corporation can take into account is given below-
3.1.1 Product
Kellogg’s has a wide product portfolio which has been designed taking into account the
health concerns and also the demands shown by the customers. However, at the same time it
needs to be said that for the purpose of addressing the issue of food scarcity the concerned
corporation would not only have to lower the prices of the food products offered by it but also
ensure the fact that they are not detrimental from the health perspective of the consumers
(Galvez, Mejuto and Simal-Gandara 2018). In this relation, it needs to be said that the different
food retailers are increasingly taking the help of different kinds of artificial preservatives,
conservatives, taste enhancers and others for the purpose of enhancing the taste as well as the
quality of the food products offered by them (Cheah, Ho and Li 2018). However, the usage of
these artificial ingredients has shown adverse effects on the health of the consumers and thus it
becomes ethical on the part of the food retailers to use the same (Xue et al. 2017).
In addition to these, Kellogg’s also has the opportunity to start a new line of food
products which would be completely organic in nature keeping in perspective the ever-increasing
customer demand for the different kinds of organic food products. It is true that there are various
food products of Kellogg’s are organic in nature yet at the same time it needs to be said that there
are very limited in nature and completely related to the snacks section of the product portfolio of
the concerned corporation. Thus, it can be said that the corporation under discussion here
through the usage of organic food products has the opportunity to address the health concerns
faced by the customers and also the issue of food scarcity as well.
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3.1.2 Place
Kellogg’s has the opportunity to take the help of the construct of green supply chain
logistics for the procurement as well as the delivery of the food products offered by it to the
customers in the nation of Singapore. This will help the concerned corporation to reduce the
damage that it causes to the environment through the supply chain logistics that it uses. More
importantly, the adequate usage of this construct is also likely to help the concerned corporation
to enhance the efficiency or for that matter the effectiveness of the supply chain logistics that it
uses and thereby enhance its profitability.
3.1.3 Price
Kellogg’s is presently taking the help of the mid-premium pricing policy because of its
extensive focus on the aspect of quality. However, the major problem associated with the usage
of this pricing strategy is the fact that it is not possible for all the customers in the nation of
Singapore to afford the food products offered by the concerned corporation. Thus, it becomes
important for the business corporation under discussion here to take the help of the cost
leadership strategy through the usage of which it would be able to offer the best quality food
products to the customers and that too in a comparatively lower price in comparison to its
competitors. This in turn would enable the concerned corporation to address the issue of food
scarcity which in the present times had emerged as one of the most important sustainability
issues in the nation of Singapore.
3.1.4 Promotion
Kellogg’s needs to take the help of ethical and social marketing which will help the
concerned corporation to take into account the entities of ethics or morals in the marketing or for
that matter the promotional advertisements that it creates for the promotion of the food products
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offered by it. For instance, the concerned corporation rather than focusing merely on the benefits
that the food products offered by it would offer the customers would have to focus on the
implications of the usage of the concerned food products and also the manner in which it is
trying to address the different societal or the environmental issues as well.
4.0 Conclusion
To conclude, the business corporations have an obligation towards the society and the
environment which they are required to fulfill through the adequate usage of the construct of
CSR. This even becomes important from the perspective of the attainment of sustainability as
well or for that matter long-term growth and competitive advantage. These are important since in
the present times it had been seen that the majority of the business corporations are merely
focusing on the attribute of profitability rather than on the attainment of long-term growth or
sustainability. These aspects become apparent from the above analysis of the same in the
particular context of the business corporation Kellogg’s.

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5.0 References
Anastasiadis, F., Tsolakis, N. and Srai, J., 2018. Digital technologies towards resource efficiency
in the agrifood sector: Key challenges in developing countries. Sustainability, 10(12), p.4850.
Aschemann-Witzel, J., Jensen, J.H., Jensen, M.H. and Kulikovskaja, V., 2017. Consumer
behaviour towards price-reduced suboptimal foods in the supermarket and the relation to food
waste in households. Appetite, 116, pp.246-258.
Cheah, S., Ho, Y.P. and Li, S., 2018. Business Model Innovation for Sustainable Performance in
Retail and Hospitality Industries. Sustainability, 10(11), p.3952.
Darbari, J.D., Agarwal, V., Sharma, R. and Jha, P.C., 2018. Analysis of impediments to
sustainability in the food supply chain: an interpretive structural modeling approach. In Quality,
IT and Business Operations (pp. 57-68). Springer, Singapore.
Eastham, J., Aguiar, L.K. and Thelwell, S. eds., 2017. Contemporary Issues in Food Supply
Chain Management. Goodfellow Publishers Limited.
Frenkel, S., Mamic, I. and Greene, L., 2016. Global supply chains in the food industry: Insights
from the Asia-Pacific region. ILO.
Galvez, J.F., Mejuto, J.C. and Simal-Gandara, J., 2018. Future challenges on the use of
blockchain for food traceability analysis. TrAC Trends in Analytical Chemistry.
Grandhi, B. and Appaiah Singh, J., 2016. What a waste! A study of food wastage behavior in
Singapore. Journal of Food Products Marketing, 22(4), pp.471-485.
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Grant, D.B., Trautrims, A. and Wong, C.Y., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management. Kogan Page
Publishers.
Greenland, S.J., 2019. Future Sustainability, Innovation and Marketing: A Framework. The
Components of Sustainable Development: Engagement and Partnership, p.63.
Heizer, J., Render, B. and Munson, C., 2016. Principles of operations management:
sustainability and supply chain management. Pearson Higher Ed.
Kelloggs.com 2019. Kellogg’s Home Page [online] Available at:
https://www.kelloggs.com/en_US/home.html [Accessed 28 Aug. 2019].
Koh, S.L., Gunasekaran, A., Morris, J., Obayi, R. and Ebrahimi, S.M., 2017. Conceptualizing a
circular framework of supply chain resource sustainability. International Journal of Operations
& Production Management, 37(10), pp.1520-1540.
Kozlowski, A., Searcy, C. and Bardecki, M., 2016. Innovation for a sustainable fashion industry:
a design focused approach toward the development of new business models. In Green
Fashion (pp. 151-169). Springer, Singapore.
Ndraha, N., Hsiao, H.I., Vlajic, J., Yang, M.F. and Lin, H.T.V., 2018. Time-temperature abuse in
the food cold chain: Review of issues, challenges, and recommendations. Food Control, 89,
pp.12-21.
Peng, M., 2019. The Growing Market of Organic Foods: Impact on the US and Global Economy.
In Safety and Practice for Organic Food (pp. 3-22). Academic Press.
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Popkin, B.M., 2017. Relationship between shifts in food system dynamics and acceleration of the
global nutrition transition. Nutrition reviews, 75(2), pp.73-82.
Rut, M. and Davies, A.R., 2018. Transitioning without confrontation? Shared food growing
niches and sustainable food transitions in Singapore. Geoforum, 96, pp.278-288.
Vo, H.T.M., Hartmann, M. and Langen, N., 2018. Rewarding the good and penalizing the bad?
Consumers’ reaction to food retailers’ conduct. British Food Journal, 120(11), pp.2539-2553.
Xue, L., Liu, G., Parfitt, J., Liu, X., Van Herpen, E., Stenmarck, Å., O’Connor, C., Ö stergren, K.
and Cheng, S., 2017. Missing food, missing data? A critical review of global food losses and
food waste data. Environmental science & technology, 51(12), pp.6618-6633.
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