If and how environmental friendliness be a profitable marketing strategy in the current recession? : Comparative study on management’s perspectives at two food retailers’ in Sweden

Abstract:

Abstract

Date: 2010-05-28

Authors:        Aamer Shahzad & Syed Nadeem Hussain Shah.

Advisor: Mr. Konstantin Lampou

Program: M.S. International Marketing

Title: If and how environmental friendliness be a profitable marketing strategy in the current recession? A comparative study on managements’ perspectives at two food retailers in Sweden.

Problem: During the current recession, consumers are not as much willing to pay more for green but expensive products as were in the past. However, despite this changing consumer attitude, food retailers in Sweden claim their marketing strategy as environmentally friendly. When maximizing profits is considered major corporate goal of every business, investigating the managements’ point of view on environmental friendliness as profitable marketing strategy in the recession period becomes an interesting topic for research.

Purpose: The objective of this paper is to get insight on management’s perspectives from large-scale food retailers in Sweden on their choice of environmental friendliness as marketing strategy with respect to profitability in the current recession.

Method: This qualitative study utilizes realist approach to research and exploratory research method. Through literature review, a conceptual model was developed for study. Primary data comes from interviews whereas secondary data from websites and annual reports of the companies.

Conclusion: The green marketing strategy is profitable even in recession as it is a great source of competitive advantage and numerous profitable opportunities. This commitment to environment in hard times yields favorable reputation and helps companies in developing new products; finding new markets and suppliers; expanding customer-base; improving processes and stores; enhancing efficiency; etc.

Key Words: Environmental friendliness, green marketing strategy, food retailers in Sweden, green products, impact of recession, profitability, communication.