Marketing Strategy and Plan

Requirement

1.    Examine the conditioning factors leading to the need for sustainable marketing practice 
•    Identifying and discussing the most relevant Triple Bottom Line (TBL) issues 
2.    Evaluate the challenges faced by Aveda from the demands of the sustainability agenda (Relating to 3Ps – People, Planet, Profit)
•    Linking the TBL issues to specific business challenges?
•    How do the issues affect Aveda’s practice??
•    How are these issues reflected specifically within the context of your chosen sector? What is the mainstream challenge??
•    Is this challenge being met by the sector??What is the consumers’ perception of sustainability issues within this sector??
•    Is the mainstreaming of sustainability a viable option at the moment? 
3.    Critically analyse the viability of strategies and tactics for the implementation of sustainable marketing management 
•    Determining the marketing strategy and tactics of Aveda based on the evidence you have gathered on them?
•    Evaluating what Aveda does to deal with TBL issues / business challenges?
•    Deciding how well Aveda addresses its challenges 
•    Is Aveda trying to make sustainable cosmetic more mainstream? How? Why not??
•    Should Aveda be trying to expand its appeal and mainstream its products and business philosophy? 
•    Can Aveda still be successful and not mainstream its offer??
•    What are other similar businesses doing? How could your provider learn from the best practice of others?

Solution

Introduction

The concept of sustainable marketing is related to the commitment of the companies that they will avoid depleting and degrading the environment, and their marketing practices will not generate wastes, reduce the consumption of energy and the demand of the consumers will not exert unnecessary pressure on the environment (Emery, 2012). Sustainable marketing not only helps the companies in building good relations with the customers, but they also help in protecting the environment. Thus, the practices of the companies are regarded to be transparent and ethical. The purpose of this assignment is to evaluate the sustainable marketing practices of the company Aveda. There are many challenges that the companies have to face in this kind of marketing activity, so the assignment will determine those challenges faced by Aveda and analyze the viability of strategies and tactics for the implementation of sustainable marketing management in Aveda.
About the company
Aveda Corporation was founded by Horst Rechelbacher. The headquarters of the company is in Minneapolis suburb of Blaine, Minnesota (Milliman, 2013). The company is in the business of manufacturingthe body and skin care products like the cosmetics, perfumes, hair colors, etc. Its products are natural and organic, and the company has a great focus on the concept of sustainability.  

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An examination of the conditioning factors leading to the need for sustainable marketing practice in Aveda
Sustainability is an integral part of the way in which Aveda does business. The company planned to innovate its products and meet the demands of its customers in a sustainable way. The company found the journey of sustainability as an exciting journey and they felt that the enhanced performance of the company can be delivered only by adopting this path of sustainable marketing (USA, 2016). The company wanted to make ethics as the core of its business practices, and hence it planned to go for the sustainable marketing practice in Aveda (Sahota, 2014)... 

The Triple Bottom Line (TBL) issues

These issues also developed the need for sustainable marketing in Aveda. The TBL is a framework of accounting that incorporates the dimensions of performance for a company that is: social, environmental and financial or in other words, the 3Ps: people, planet and profits (Nikolaou, 2013).  

The company Aveda wanted to maintain good and mutually beneficial relations with its customers, community, and the employees. The company Aveda wanted its profile to be positive in the eyes of the social world, and it wanted to have continuous support of its customers and community (Willard, 2012).  Hence, for the social sustainability is one of the factors due to which Aveda started its sustainable marketing practice. 

Aveda wanted to gain the benefit of reduced costs for its products. So, instead of using low-quality raw materials for the manufacturing and creating a potential threat  to  the company, it focussed on using the resources in  a thoughtful way and not wasting them  (Nikolaou, 2013). It protected itself from the hazardous substances and also reduced the emissions from its factories. Thus, the focus on reduced cost was another factor that made the company adopt a sustainable marketing practice and achieved environmental sustainability along with the reduction in its own costs. 

The goal of every company is to earn profits and become economically sustainable. So, this was the last factor that influenced the company to go for sustainable marketing practice. With this, the company improved the efficiency of its business, improved productivity and earned more profits (Savitz, 2012). 
Challenges faced by Aveda from the demands of the sustainability agenda

Linking the TBL issues to specific business challenges?

  • The company Aveda sources natural ingredients because it has focused on the environment (as per the TBL issues discussed above). The world has finite resources, and the strategy of this company revolves around these resources only. So, the first challenge is the limited resources available and the difficulty in sourcing them. 
  • Another challenge is to maintain good relations with the suppliers and the community because of the company networks with almost 8000 salons and spas in the world (Nagy,  2015) and therefore it has to supply its products to many countries. When the company faces shortage of the products, then its relations with the countries are at stake as it has to choose that to which buyer it will supply its limited stock. 
  • sustainable path as it had to navigate its need for a steady supply of natural ingredients (Nagy, 2015). 
  • Effect of the issues on the Aveda’s practice
  • =•    When Estée Lauder company bought Aveda, it decided not to share the Aveda's laser focus on plant-based sourcing (Pine, 2014). So, the company faced a challenge to operate on the
  • =The issues have affected the entire life cycle of the products of Aveda. The company continuously tries to find such technology that creates a sustainable design for the products and the sustainable manufacturing of the ingredients of the cosmetics. 
  • Aveda has secured for itself a certification that recognizes its products to be good for the environment and for the customers (Pine, 2014). This practice has made the company move ahead of just the ‘eco-efficient’ practices. 
  • The issues have also made the company meet all the expectations of the consumers in the market as they have got a genuine product that has solved many of their beauty and skin related problems. 
  • Reflection of the issues within the context of cosmetics sector and the mainstreaming challenge

The cosmetics sector is one of the most looked upon sector by the consumers. It is seen as a solution to their day-to-day problems like the skin problems, beauty issues, hair problems, etc.  This sector should aim to solve the challenges that the consumers face with their beauty on a daily basis like the falling hair, rough skin, dark skin tone, etc.  Therefore, this sector should not focus on just earning profits, but it should focus on the customer service. Thus, the TBL issues play an important role in the cosmetics sector. The main reflection of these issues in a context of the cosmetics sector happens in the manufacturing and the sourcing of the raw materials. The cosmetic sector is expected to use all the natural ingredients in the production of its products.  So, it is expected from the companies in this industry that they do it in a sustainable way because the sourcing of the raw materials has direct impact on nature and the environment. The companies are expected to take care of the environment as well. The social issues are also reflected within the context of cosmetics sector because the companies have to maintain good relations with its customers to understand their needs in a proper manner, understand their problems and accordingly producing the products that are able to solve their specific problems. 

The mainstreaming challenge is to engage all the people associated with the company in the sustainable marketing practices and protecting the environment (Martins, 2014). This is because, in some instances, the companies produce the sustainable products, but the consumers don’t buy it. The suppliers may not be willing to search for the natural ingredients, and they may supply a false or non-natural products, etc. So, it is very difficult to motivate all the people to get engaged in the practices of sustainable marketing. 
Determining whether the challenge has been met by the sector or not and the perception of consumer regarding the sustainability issues within this sector
The challenges that have been mentioned above have been met by the sector to some extent. The sector faces difficulty in sourcing the products, but it tries hard to do that and remain intact with its policy of using only the natural ingredients in the cosmetic. It faces difficult in maintaining good relations with the buyers in other countries because sometimes, the limited stock fails to fulfill demands of people across the world. But, the company try to balance this.

The consumers have a wide variety of cosmetics to choose from.  But, the consumers are well-aware these days, and before using any cosmetic, they check the company and the ingredients of the product. So, the perception of the consumer regarding the sustainability issues within this sector is positive. They have a preference for the products of the company that is involved in sustainability and use the TBL framework for the development of its products(Spa, 2016). The company Aveda also has a wide customer base, and it supplies its products to almost 8000 salons and spas. This shows that people have a preference for the products that are developed sustainably and they perceive these products to be good. 

Is the mainstreaming of sustainability a viable option at the moment?
Yes, the mainstreaming of sustainability a viable option at the moment because the growth in the world is happening at a very fast pace and in comparison to the growth, the resources in the world are limited.  Also, the wastages and under or over utilisation of the resources is leading to losses to the environment. This is likely to affect the future generations in the coming years. So, sustainability should be mainstreamed by all the companies and the cosmetic sector too. This will help in the reducing of the costs related to energy consumption (Martins, 2014). The companies will adjust their consumption of energy as per the level of production, and hence the costs will get saved. Then customers also favor the products that are produced naturally and are eco-friendly. So, the sales of the companies are likely to increase. Finally, the greatest viability in mainstreaming the sustainability lies in the positive impact that it will have on the society. Thus, at present, the companies must make sustainability the core of its business. 

Critical analysis of the viability of strategies and tactics for the implementation of sustainable marketing management
Determining the marketing strategy and tactics of Aveda based on the evidence you have gathered on them
The marketing strategy of Aveda involved use of social media widgets, AdWords campaign and the cross-media competition for promoting the products (Chan, 2014). For implementing the sustainable marketing management, the company opened affordable salons at various places so that the costs are saved, and it enrolled students from various schools like the beauty school, modern beauty school, etc. Instead of wasting resources like paper and printing brochures, it used the social media platform to interact with its audience (von Meyer-Höfer, 2014).   

Evaluating what Aveda does to deal with TBL issues / business challenges

Aveda involves genuine suppliers with its business who can supply only the natural ingredients to it. If the company feels that any supplier is not able to source the natural ingredients or it is trying to get the ingredients by damaging the environments, then it breaks its partnership with that supplier(Aveda patents colour-depositing shampoo, 2003). 

  1. •    The company uses sustainable practices of manufacturing the product like it avoids wastage create superior aesthetics etc. 

  2. •    The company has installed eco-friendly technology for production. This makes the production happen at low cost, in an efficient manner, wastes produced are less and acceptance by the consumers is more.

Deciding how well Aveda addresses its challenges

According to the above analysis, Aveda addresses its challenges in a very well manner except for the challenge of navigating its need for a steady supply of natural ingredients. The company has been able to deploy strategies for overcoming all the challenges in the path of suitability and till date the company is moving on the path of sustainable manufacturing and sustainable marketing. It has been using the green tools that produce the exceptional green products (von Meyer-Höfer, 2014) and solves the problems of its customers. 

Is Aveda trying to make sustainable cosmetic more mainstream? How? Why not?

Yes, Aveda is trying to make sustainable cosmetic more mainstream because the company Aveda is maintaining good and mutually beneficial relations with its customers, community, and the employees. Aveda wanted to gain the benefit of reduced costs for its products. So, instead of using low-quality raw materials for the manufacturing and creating a potential threat  to  the company, it focussed on using the resources in  a thoughtful way and not wasting them. It protected itself from the hazardous substances and also reduced the emissions from its factories(Aveda patents colour-depositing shampoo, 2003). The company also improved the efficiency of its business, improved productivity and earned more profits. 

Should Aveda be trying to expand its appeal and mainstream its products and business philosophy?

Yes, Aveda should do that because sustainable products are needed in today's world, and they are preferred products too.  If the products and the philosophy of the company are beneficial to the people, customer, and the environment in any way, ten its must be spread and mainstreamed.

Can Aveda still be successful and not mainstream its offer?

This may not happen because the company has already positioned itself as a sustainable company in the market and if it does not mainstream this then the customers may lose confidence in the products of the company, and it may no longer remain so popular and competitive in the market. 
What are other similar businesses doing? How could Aveda learn from the best practice of others?
L’Oreal is another brand of cosmetics which is following the path of sustainability. It is very much committed to the society and community. It creates the products that are most useful to the consumers and meet their real social needs (Campion, 2013). 

Aveda can learn from its business practices as L’Oreal has announced a commitment to sustainability for 2020 and it is making the move to achieve that, thus the confidence of the consumers in the company has grown. This is the best practice because it has attracted the attention of the consumers and they prefer the products of the company. The campaign has shown that how much the company is dedicated towards the sustainability and thus, the company has concern for the environment.By committing to similar ambitions, the company Aveda can also attract the consumers and make further moves towards achieving the sustainability. 

Conclusion

It can be concluded that the sustainable marketing practices of the company Aveda are very efficient except for few like the control on the suppliers and engagement of all people in sustainability. There are many challenges that the company has to face in this kind of marketing activity like the sourcing of ingredients, maintaining good relations, etc.  But, the strategies and tactics for the implementation of sustainable marketing management in Aveda are viable, and the company has been successful to a great extent in adopting and practicing the sustainable marketing concepts. 

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References

  • Aveda patents colour-depositing shampoo. (2003). Focus on Surfactants, 2003(5), p.5.

  • Campion, J.F., Barre, R. and Gilbert, L., 2013. PART 2: INNOVATING TO REDUCE THE ENVIRONMENTAL FOOTPRINT, THE L’OREAL EXAMPLE.Sustainability: How the Cosmetics Industry is Greening Up, p.31.

  • Chan, P., 2014. A framework linking positioning strategy and resource-based view: Women-friendly hotels. Web Journal of Chinese Management Review,17(2), pp.1-22.

  • Emery, B., 2012. Sustainable marketing. Pearson.

  • Martins, A., Vieira, H., Gaspar, H. and Santos, S., 2014. Marketed marine natural products in the pharmaceutical and cosmeceutical industries: Tips for success. Marine drugs, 12(2), pp.1066-1101.

  • Milliman, J., 2013. Leading?Edge Green Human Resource Practices: Vital Components to Advancing Environmental Sustainability. Environmental Quality Management, 23(2), pp.31-45.

  • Nagy, B.G. and Dovalina, C.L., 2015. Five senses spa and salon: The best, but at what cost?. Journal of Asia Entrepreneurship and Sustainability, 11(2), p.57.

  • Nikolaou, I.E., Evangelinos, K.I. and Allan, S., 2013. A reverse logistics social responsibility evaluation framework based on the triple bottom line approach. Journal of Cleaner Production, 56, pp.173-184.

  • Pine, C., 2014.The art of consultation. Instyle, (May/Jun 2014), p.158.

  • Sahota, A. ed., 2014. Sustainability: how the cosmetics industry is greening up. John Wiley & Sons.

  • USA, C. (2016). Aveda opens up on how sustainability has become integral to its business. [online] CosmeticsDesign.com USA. Available at: http://www.cosmeticsdesign.com/Business-Financial/Aveda-opens-up-on-how-sustainability-has-become-integral-to-its-business [Accessed 4 Oct. 2016].

  • Savitz, A., 2012. The triple bottom line: How today's best-run companies are achieving economic, social and environmental success--and how you can too. John Wiley & Sons.

  • von Meyer-Höfer, M. and Spiller, A., 2014. “Sustainability” a semi-globalisable concept for international food marketing-Consumer expectations regarding sustainable food–An explorative survey in industrialised and emerging countries (No. 182513).

  • Willard, B., 2012. The new sustainability advantage: seven business case benefits of a triple bottom line. New Society Publishers.

  • Spa, R. (2016).Aveda's Sustainability Policy. [online] Rejuvenationspa.net. Available at: http://rejuvenationspa.net/about-us/environment/?ID=24 [Accessed 4 Oct. 2016].

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