MARKETING ASSIGNMENT

TOPIC-Green Marketing of McDonalds

GREEN MARKETING Green marketing refers to the marketing of products and services considered environmentally friendly that make their marketers environmentally responsible. The advent of green marketing was due to consumer demands. Polls show that seventy-six percent of Americans consider themselves environmentalists and would prefer to buy from a company that is "Green1." A survey conducted by the Wall Street Journal and NBC News indicated more than eighty percent of Americans consider protecting the environment more important than keeping prices down. According to the same study, forty-six percent said that they had bought products based on a manufacturer's or a product's environmental reputation within the last six months. An even larger percentage, fifty-three percent, said that they had purposely not bought a specific product because of environmental concerns. What makes a product Green? Green products and packages have one or more of the following characteristics: 1) are less toxic, (2) are more durable, (3) contain reusable materials, or (4) are made of recyclable materials. The U.S. Federal Trade Commission issued "Guides for the Use of Environmental Claims" (a set of advertising guidelines) that define a green product as one that 1) has reduced raw material, high recycled content (aluminum cans); 2) non-polluting manufacture/non-toxic material (de-inking solvents); 3) no unnecessary animal testing (cosmetics); 4) no impact on protected species (dolphinfree tuna); 5) low energy consumption during production/use/disposal; 6) minimal or no packaging; reuse/refillability when possible (detergent bottles); 7) long useful life, upgrading capabilities; 8) post-consumer collection/disassembly system; remanufacturing capability. These Green Marketing Guidelines were required after some companies began misusing Green Marketing. For example, it became necessary to have guidelines for "recyclable" after some companies put the term on their packages when the product was actually recyclable only under certain conditions. Other possible misused terms include: (1) biodegradable (whether or not a product will be truly able to completely break down and return to the earth within a reasonable time); (2) environmentally safe; and (3) environmentally friendly. The Federal Trade Commission's guidelines were established to set national Green Marketing standards, but it has received several criticisms. Many environmental marketers feel that the guidelines are loaded with oversights, omissions, opportunities for legal wrangling, and shortsightedness. The biggest problem is that the state guidelines are still different from the national guidelines: a company can put "ozone friendly" on a package label in California, but not in Rhode Island.3 To overcome this federal-state labeling problem, a group of eleven state attorneys general issued its final environmental advertising recommendations called "Green Report II." The report requests the federal government to adopt standards with specific definitions for terms like degradability, compostable, recycled, and recyclable"4 The FTC further indicates any objective environmental claims must be substantiated by scientific evidence.

McDONALDS:
Fast food giant McDonalds is trying to show consumers its greener side with a new institutional marketing effort, Global Best of Green.

About 80 percent of packaging used by McDonalds Europe comes from renewable resources. In Canada, switching from bleached white napkins to plain brown has saved $1.3 million annually, while reducing energy, wood and water use. U.S. restaurant locations recycle about 13,000 pounds of used cooking oil per year, on average. Using a fryer that requires less oil allows restaurants to cook the same product with 40 percent less oil, saving 4 percent in energy over other fryer models. U.S. locations completing an energy survey identify savings of $3,000-6,000. McDonalds USA recognizes Energy All-Stars, or store managers that have provided examples for others. In France, 10 restaurants that have committed themselves to an interactive software, EcoProgress, have reduced electricity consumption 11 percent over a few months. McDonalds Mexico is testing solar hot water heaters in four locaitons to reduce use of liquified petroleum gas, with a correspondnig 2.7 percent decrease in monthly LP gas consumption and a 19 percent drop in carbon emissions. McDonalds Sweden is using CO2 detectors in 24 restaurants to adjust ventilation systems to the amount of customers in the store, reducing electricity use 15 percent annually. McDonalds Europe is serving salads in cardboard bowls instead of plastic dishes, and wooden coffee stirrers instead of plastic. In the U.S., decreasing the weight of polyproylene cold cups has decreased costs by 6 percent and saved nearly 1,000 tons of resin. Various anti-littering marketing campaigns have been implemented in Portugal, Italy, Switzerland, the UK, Australia, Germany and other nations. A variety of different waste and recycling bins have been tested in certain countries. A German model achieved a 90 percent recycling rate.

Restaurants in Switzerland feature a separate recepticle for organic waste, which is sold to Kompogas, which ferments the waste into biogas. Despite its efforts, McDonalds has been criticized for the waste it creates around the world. In the UK, McDonalds is responsible for 29 percent of all takeaway litter, according to The Mail. Greenpeace has alleged that the Brazilian soya that McDonalds feeds its chickens is responsible, in part, for the destruction of rain forest lands, according to Wikipedia. Eric Schlossers 2001 book Fast Food Nation claimed that McDonalds uses political influence to put profits before peoples health and the social conditions of its workers. Back in 1990, London Greenpeace, which bears no connection to the international pressure group Greenpeace, distributed leaflets entitled Whats wrong with McDonalds?, criticizing its environmental record, among other things. McDonalds sued the group for libel, resulting in one of the longest-running civil cases in British history.

In an effort to test various energy saving and waste-reducing methods, McDonalds is evaluating 10 prototype green restaurant locations. The restaurant is treating the 10 locations as learning laboratories. One of the green prototype stores, in the Chicago area, uses 25 percent less energy than similar locations. Energy savings and waste reduction are central to McDonalds corporate social responsibility strategy, Langert said. Globally, the restaurant consumes $1.7 billion annually in energy and it spends another $1.3 billion handling its waste. McDonalds has more than 31,000 locations worldwide. Reducing waste most often comes down to redesigning, trimming and using new materials for existing packaging, he said, with solutions that can be organically composted getting the most traction. Turning waste into something that can be useful is our vision. So far, finding a type of biodegradable packaging made from corn or other non-tree resources has proved fruitless. Most such options have had problems with warping or not keeping the food warm. In other news, a McDonalds location in Cary, N.C., which was built with an eye toward sustainability and energy efficiency, is offering drivers of electric cars use of a charging station on site.

GREEN MARKETING PROS The pros of green marketing in Mcdonalds are very clear, however the primary advantage is their environmental benefits. These types of marketing products and services cause less waste, don't use unpleasant chemicals and dyes, and are often created using recycled materials. An extra benefit is that many consumers will appreciate the additional steps that you're taking to become more eco-friendly with your marketing that will improve their perception of your business. GREEN MARKETING CONS Although there are many upsides to selecting a green marketing strategy for your personal Mcdonalds business, these kinds of services and products tend to cost more a lot of the time. In fact, the price tag is about the only drawback there is to green marketing in Mcdonalds. However, the great news is that when the availability of these types of marketing services and products goes up the price will go down and based on the strategies you use green marketing could help you save money in other ways. Another thing to consider is the possible lack of local green marketing options in some areas. GREEN MARKETING IDEAS FOR McDONALDS Today, there is a wide range of green marketing products and services in Mcdonalds to choose from. Below are things to consider using and incorporating if you wish to green up your marketing. Green packaging Think about how you can recycle things like old newspapers and magazine to cushion packages. You can even buy biodegradable packaging and choosing boxes and envelopes made from recycled materials. Reusable grocery bags Put your logo on a reusable bag for a functional promo marketing product. Along with helping people reduce waste, a reusable bag is a marketing product people want and will use thus upping your ROI with free advertising. Use online marketing Not only is online marketing a highly targeted and cost effective approach, it's also the greenest strategy to market your business. Online marketing doesn't use nearly as many resources and create as much waste as print and even commercial marketing. Choose local food If you're putting on a seminar, hosting a luncheon, or throwing a launch party choosing to use locally grown and produced foods will reduce the carbon footprint that it takes to cater the event. It's also supporting local Mcdonalds business which is a good way to help grow your own. Use green incentives - Motivate consumers by marketing about donations to environmentally friendly organizations. This makes a huge impact if you advertise that you'll donate to an organization each time a purchase is made. The customer

will feel like they're getting more for their money and that their purchase benefits the environment as much as it benefits them. Depending on the type of green marketing products and services you are searching for you can opt to use a local business, online provider, doing it DYI or a combination. The internet is a great resource for finding green marketing tools in Mcdonalds, Alabama and will provide you with options no matter where your business is located so it's the perfect starting point your search. It's also a wise decision to look for green marketing products and services in Mcdonalds that are Green Seal certified. Green Seal has been providing standards and third party certification since 1989.

WHY ARE FIRMS USING GREEN MARKETING? Reasons are as follows: Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives. Organizations believe they have a moral obligation to be more socially responsible. Governmental bodies are forcing firms to become more responsible. Competitors' environmental activities pressure firms to change their environmental marketing activities. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behaviour.