Marketing Principles: Green Product Pricing and Sustainable Marketing

This presentation analyzes the marketing principles for green products, specifically focusing on the pricing strategy for sustainable offerings like paper coffee cups in the Australian market. The presentation identifies the problem of consumer willingness to pay a premium for green products, and it establishes financial, marketing, and sustainability objectives. It targets green consumers, particularly millennials, and proposes a positioning statement emphasizing environmental benefits. The pricing strategy aims to balance value and cost, suggesting creative pricing tactics to reduce green price premiums. The implementation involves offering the product with efficient pricing and discounts, with an estimated price point. The presentation references relevant literature and covers aspects of the assignment brief including current situation, objectives, target market, positioning, pricing, and marketing implementation, aligning with the course's emphasis on creating value responsibly.

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

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SLIDE 1
Problem
The main problem statement is are consumers willing to pay more for green products
or not. This will be analysed in this presentation, though it has been in various studies and
researches that customers are willing to pay for greener products, but only up to a certain
limit.
Current Situation
The current situation of the global business environment is to reduce the pollution that
is created in the environment by usage of green products and services in the market places of
Australia. Green products or services are offerings which help in economic improvement
along with conservation of energy for future generations. They are less harmful to the society
and health of the human beings. Green consumers need to be found out and they will be the
primary or major targeted group. Paper coffee cup can be selected as one of the green
products is selected as a green product for this presentation.

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Figure: Demand for Green Products and Services
Source: Created by the Author

3MARKETING PRINCIPLES
SLIDE 2
Objectives
Financial
The financial objective will be to set the price which can be afforded by all sectors of
people, mainly the green consumers, so that the green product which will possess all the
power reach to maximum number of people in the market place of Australia. Consumers will
pay for these green products but only up to a certain limit.
Marketing
The marketing objective of the offerings will be to reach the product to maximum
number of people through different marketing communication channels are sustainably
offered to the people of the market places according to the characteristics of the products.
Sustainability
The term sustainable market offering, also known as green market offering, include
those offerings that possess the ability or capacity through the offerings to satisfy the needs
and wants of the people in order to make better the environmental as well as social
performances of the entities who will use these offerings. Through sustainable market
offerings, the relationship between the people and the management who is offering the
product can be built and improved through the overall process of letting them know the
importance of them along with the future generations that will come.

4MARKETING PRINCIPLES
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SLIDE 3
Target Market
In Australia, it has been found that the paper cups are used in a wide range across the
state. It has been estimated that per year, approximately one billion paper cups are used in
Australia. Consumers who are willing to pay the highest green premium in packaging, and
they will be targeted for selling this particular product. For example, corporates, restaurants
and cafes can introduce this green product in the overall market place of Australia to reduce
the usage of plastic coffee cups. Overall, the green consumers will be identified and targeted
for this particular green product. To aware the targeted customers in this market, bottom up
green cups need to be produced and offered by the organizations. Millennials will be the
major targeted customers for this product.
Green Positioning
The positioning statement of this reusable coffee cups will be To Save the Future
Generation and Global Environment for Harmfulness. They need to be positioned
according to the target market group that has been discussed in target market section and the
affordability of paying the prices of this particular green product. It will be sold to those
places on initial stages where the consumers will willingly pay for them. The customer
perceived benefits need to be increased through this green positioning. Thus, it can be said
that green positioning will make the targeted people aware and ignite the interest to buy and
use this particular green product and help to save the environment from getting polluted.

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SLIDE 4
Pricing Strategy
The aim of pricing for sustainability is to increase perceived reasonable value, that is,
to increase the customer perceived benefits and reduce customer perceived total costs. A new
belief in the mind of the green consumers need to be added which will make them aware
about usage and payment for green products and services like paper coffee cups. For the
distributors and whole-sellers, allowances and rebates should be given to spread the
awareness about green products and services. Creative pricing for this green product needs to
be followed to reduce green price premiums. It can be said that consumers are willing to pay
for green products to safe the environment along with their future generation, but only up to a
certain limit, and the prices of the green products need to be set accordingly.

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SLIDE 5
Marketing Implementation
Green product in the form of paper coffee cups need to be offered to the people of
Australia with fine-tune base price with efficient pricing tactics. Discounts need to be given
to attract more people.
Budget
As discussed earlier, the price of a paper cup in Australia can be kept at around 5 AUD$.
Evaluation and Control
Creative pricing for this product need to followed in order to control the green price
premiums. Good and efficient pricing will create more opportunities for this particular green
product.

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Reference
Ferreira, J. and Ferreira, C., 2018. From bean to cup and beyond: exploring ethical
consumption and coffee shops. Journal of Consumer Ethics, 2(2), p.20834.
Martínez, P., 2015. Customer loyalty: exploring its antecedents from a green marketing
perspective. International Journal of Contemporary Hospitality Management.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Poortinga, W., Nash, N. and Hoeijmakers, L., 2019. Rapid review of charging for disposable
coffee cups and other waste minimisation measure.
Potting, J. and van der Harst, E., 2015. Facility arrangements and the environmental
performance of disposable and reusable cups. The International Journal of Life Cycle
Assessment, 20(8), pp.1143-1154.