Abstract

This case is about the inception, growth and green marketing practices of Vermont (U.S.) based Seventh Generation Inc, (SG), producer and distributor of environment-safe household products. Started by Alan Newman in 1989, SG established itself as an ethically, socially and environmentally conscious firm, with sustainability being the core of its business. SG strove to bring the ‘green’ aspect not only in procurement, development, and production, but also in the disposal of the products. SG showed a high level of concern about the ecological impact of its products and focused on aspects like protection of natural resources and biodegradability. It also tied up with many companies for getting recyclable packaging for its products. Through its practices, the company established benchmarks for ethical corporate behavior. SG evaluated its manufacturing partners on parameters like quality assurance, manufacturing, logistics, corporate responsibility, and research and development. SG also made the manufacturing a part of its sustainability efforts, and communicated its values and expectations from them regularly. It was also ensured that recyclable packaging was used for all its products. In 2012, SG began its journey to achieve its ‘2020 Goals’, a roadmap containing four aspirations — nurture nature, enhance health, transform commerce, and build communities. By 2015, it appeared that SG was well on its way to achieve its goals. In September 2016, SG announced that it was being acquired by British Dutch multinational FMCG giant Unilever. Unilever was accused for misleading advertising, animal testing, and engaging in greenwashing in the past. Allegedly the company spent a lot of energy and money on marketing and commercialization of its products but there was very little effort put towards sustainable practices. Questions were raised whether SG would remain committed to its 2020 goals. Some critics were concerned that SG’s image as a green, socially conscious company might get tarnished as huge multinational corporations tend to be less committed towards the communities and environment. At the same time, few analysts quoted the Ben & Jerry's Inc.’s, (a Vermont ice cream company) sale to Unilever in 2000 as an example of how a company could keep its core values intact even after being acquired. The case concludes with discussion on whether SG would be able to sustain like Ben & Jerry’s or would eventually give up its green ‘mojo’ and get caught in the profit and revenues quagmire under Unilever.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the concept of sustainability, green marketing and societal marketing.
• Explain sustainable marketing and how it differs from traditional marketing
• Analyze how companies can employ sustainable ‘green’ practices to encourage green consumerism and green purchasing
• Discuss why marketing a sustainable brand is different than a mainstream product
• Understand how sustainability-focused strategy can contribute to competitive advantage

Keywords

Green Marketing,Societal Marketing,Environmental friendly products,Green Consumerism,Green purchasing,Sustainability practices,Mergers & Acquisitions,Greenwashing,Social Enterprise,Social Mission