FIJI Water and Corporate Social Responsibility -
Green Makeover or “greenwashing”?
Principles of Marketing
Dr. Konya Weber
September 20, 2012
FIJI Water Case Study
A corporation that says it is socially responsible, claims that they are concerned for society's welfare; which also includes the environment, because now days, we are a lot more concerned about our environment and how everything affect it. The corporation will make sure to insure those values within the company and also to its partners. ("Social responsibility in Marketing," 2012 - 1998) Also, if a corporation says it is ethically responsible and it really is, it shows to their customers and partners their integrity and empathy; which are characteristics that we all seek in a company. If the company is ethical and socially responsible, people will want to buy from it, and other companies will want to partner with it. (Lawhorne, 2011)
Marketers should be concerned about corporate social responsibility for three reasons: First, because it is the right thing to do. Some of the societal problems that we face today were created by businesses; for example: pollution. It is the business job to not do anything that can harm our environment and our society. If the business has already done that, it is double the responsibility to try to fix it and be socially responsible. Second, if businesses aren't socially responsible, the government can or will create regulations and perhaps fine the corporations. This is not good, because the company is already being “bad” for not act responsibly, and also for having to spend money, paying a fine, instead of just doing something about it. Third, because the company can be profitable doing so. Companies can prosper and build values by focus on society problems. That's where sustainability comes in; which means that companies that are socially responsible will outperform other companies who aren't, focusing on world's society problems. When a company decides to be socially responsible and focus on sustainability, it focuses on the future. It starts acting in long-term consequences and focus on environmental, economic and social factors that can affect its business, and plan a strategy that will focus on that, but still maintaining its competitiveness and reputation. (Lamb, Hair & McDaniel, 2012)
FIJI Water had to adapt to new market trends, people's desire, and it seems like it was pretty successful. The water had light mineralization, and it helped with the taste of it, which was an important advantage. Also, it gave the impression that the water was clean and pure taste. In addition to taste, the water contained silica; an ingredient that people believed helped with rejuvenation and anti-aging. Also, another aspect was that the water was “virgin”; it was taken from an unpolluted ecosystem. All of this helped with the success of the company, but another important element for success, was the package. The package of a product is the way we differentiate products, and that's how a product gets attention on the shelf. FIJI Water created a packaging that was different to everyone else; it was the first company to make square bottles. Also, the packaging reflected images from where the water came from; little images to represent Fiji Island, and with time, they innovated their images, to call more attention.
Another important element on the success was the premium-price policy. This strategy is also called price-quality signaling, because the high price signals to consumers that the product is high in quality. Some companies use this strategy to give their product an aspirational image. FIJI Water wanted to show its customers that their water was the best; it was taken from an unpolluted place and there was less mineralization, helping with aging. Likewise, distribution also helped with the success of the company. It had good distributors, which helped the brand to be...
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