The most sustainable companies in America are beating the market (#M4BW)

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Regular readers, and those who have already seen the 17th edition of Essentials of Marketing know that we believe business can contribute to making a better, more sustainable world — without necessarily sacrificing profits in the process. Barron’s recently posted an article on this topic, and while the real thing is behind a paywall, I found this copy online (I hope it lasts there for your review).

After Barron‘s ranked the 100 most sustainable companies (#1 Texas Instruments), it compared their stock market returns in 2019 (+34.5%) with those of the S&P 500 (+31.5%). The article is optimistic that this trend will continue. Why? Some of the reasons given in the article include:

  • These companies attract employees — people want to work there,
  • They are better at employee retention,
  • Good environmental policies lower costs,
  • Customers want to do business with these companies,
  • Investors want to buy into sustainable companies.

What’s Now? Chapter 19 – Fargreen helps Vietnamese farmers and the planet

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fargreen-logo-retina1I have a soft spot in my heart for Fargreen. The startup that emerged from the Colorado State University Global Social and Sustainable Enterprise MBA program (full disclosure, Colorado State is my employer and I served for many years on the advisory board for this program). I also know Fargreen’s founder, Trang Tran. She developed a great idea to help Vietnamese farmers while also lowering carbon emissions. What is not to like? After winning several business plan competitions, Trang is now moving her business forward. This brandchannel article “Yale on Purpose-Driven Startups: Fargreen — Going Far By Going Green” (May 2, 2016) is one in a series with Yale MBA students.

Read the article about Fargreen. Explain how Fargreen ties into macromarketing, micromarketing, and innovative marketing planning — all major topics in chapter 19. 

What’s Now? Chapter 18 – Consumers Willing to Pay More for Products Boasting Fair Trade Logo

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FairtradeA research study at the Universität Bonn (Germany) found that consumers are willing to pay more for products that include the Fair Trade logo (see image of logo on left). The logo can be found on a range of products including bananas, coffee, chocolate, and wine. TheUniversität Bonn study found consumers were willing to pay 30% more when the product carried the Fair Trade logo.

In addition, they thought Fair Trade branded products tasted better. Another part of the study asked consumers to sample two pieces of chocolate and determine which tasted better. While the chocolates were identical, one included the Fair Trade logo. the logo alone caused consumers to report the chocolate tasted better. Read more at Science Daily, “Fair Trade Logo Boosts Consumer’s willingness to pay” (August 27, 2015).

The Fair Trade logo appears to reduce consumer’s price sensitivity. Review chapter 18’s discussion of price sensitivity and explain how the Fair Trade logo example influences price sensitivity.  

What’s Now? Chapter 2 – Hungry Harvest Tackles Food Waste and Hunger

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hungry-harvest-logo-picture-600The website brandchannel has launched a series of short case study articles. A team of Yale MBA students evaluate a purpose-driven startup and offer some marketing strategy recommendations.  We used a different case from this series in chapter 1. In this case (see “Hungry Harvest – No Food Waste, No Hunger, brandchannel, April 25, 2016), Hungry Harvest tries to tackle two seemingly dichotomous problems – food waste and hunger. It tries to put some of the 40% of produced grown in the U.S. that goes to waste with into the mouths of 50 million poor Americans who don’t get enough food.

From the Hungry Harvest case, give at least one example of each of the elements of the marketing strategy planning process model (see Exhibit 2-9).

What’s Now? Chapter 1 – Startup Sustainable Furniture Company Gets Tips from Yale MBA Students

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C1HugoHobyLogoThe website brandchannel has launched a series of short case study articles. A team of Yale MBA students evaluate a purpose-driven startup and offer some marketing strategy recommendations. In “Hugo & Hoby – Quality, Sustainably Sourced Furniture,” (April 27, 2016) you learn about a startup furniture maker that needs to move from making sustainably sourced furniture for friends and family to a wider market.

Read this article and review the recommendations made by the team of Yale MBA students. What concepts from chapter 1 do you see demonstrated in this case study? Can you think of any other ideas for improving Hugo & Hoby’s marketing?