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SWOT Analysis of Sustainable Marketing Mix of Food Industry Enterprises

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The article is a pioneering attempt to identify the strengths and weaknesses as well as opportunities and threats to the development of a sustainable marketing mix in Polish food industry enterprises. The study enriches the poor state of literature on the sustainable marketing and marketing mix. The value of research is to acquire and present new knowledge about the four elements of marketing mix in the sustainable concept. The article may support managers who want to implement the concept of sustainable marketing mix in their companies. The aim of the study is to conduct a SWOT analysis, identifying strengths, weaknesses as well as opportunities and threats to the development of a sustainable marketing mix in Polish food industry enterprises
SWOT Analysis of Sustainable Marketing Mix of Food Industry
Enterprises
TOMASZ TROJANOWSKI
Department of Management
Jan Kochanowski University in Kielce
Żeromskiego Street 5, Kielce 25-369
POLAND
Abstract: The article is a pioneering attempt to identify the strengths and weaknesses as well as
opportunities and threats to the development of a sustainable marketing mix in Polish food industry
enterprises. The study enriches the poor state of literature on the sustainable marketing and marketing
mix. The value of research is to acquire and present new knowledge about the four elements of
marketing mix in the sustainable concept. The article may support managers who want to implement
the concept of sustainable marketing mix in their companies. The aim of the study is to conduct a
SWOT analysis, identifying strengths, weaknesses as well as opportunities and threats to the
development of a sustainable marketing mix in Polish food industry enterprises.
Key-Words: SWOT analysis, sustainable marketing mix, food industry enterprise
Received: May 30, 2021. Revised: September 24, 2021. Accepted: September 27, 2021. Published: September 30, 2021.
1 Introduction
The processes of environmental degradation and
emerging social problems put the welfare and
prosperity of the next generations at risk. The
development of modern civilization, the desire for
industrial enterprises, including those from the food
sector, to have more and more material and financial
resources, means that the natural resources of the
Earth are rapidly shrinking and, in some cases,
completely disappearing. The changing economic
environment of food enterprises, which is related
not only to the development of civilization, but also
to the increase in competition, technology
development, or common consumerism, observed
mainly in developed and developing countries,
strongly affects the functioning of enterprises [1].
The manufacturing activity of food industry
enterprises is obviously related to the impact on the
natural environment of man. Taking the Earth's
natural resources needed for production is an
unquestionable interference with the ecosystem of
our planet. The business activity of enterprises,
which ignores the environmental and social aspects,
is doomed to failure in the long term. For this
reason, there is a need to change the current way of
managing enterprises, including marketing
activities, into more environmentally and socially
sustainable economic ventures.
An effective solution to meet the emerging
environmental and social problems is the
reorganisation of production processes towards
more sustainable and responsible manufacturing
activities [2]. For this reason, food sector companies
should make efforts to change their current
production activities into pro-environmental and
pro-social activities [3]. One of the main conditions
for reorienting the philosophy of conduct of food
companies to date is a properly understood and
professionally conducted sustainable marketing mix.
2 The Concept of Sustainable
Marketing Mix
The concept of sustainable development gave
foundations to the formation of a new scientific
trend known as sustainability marketing. A.
Pomering and L. W. Johnson claim that in the
last decade there has been an increased interest
in the issues of sustainable marketing, including
the sustainable marketing mix, among scientists
and researchers [4].
As a result of the recognition of the state of
knowledge in the field of sustainable marketing,
including the sustainable marketing mix, it
should be indicated that this is
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a new and developing scientific area that
requires further analysis in terms of theoretical
and empirical aspects. They deal with the
subject of sustainable marketing: D. Fuller; F.
Belz, K. Peattie; K. Leitner; D. Kadirov; D.
Martin, J. Schouten; B. Emery; J. Kemper, C.
M. Hall, P. W. Ballantine [5-11]. When
referring to the achievements in the field of
sustainable marketing mix in relation to food
industry enterprises, the publications by E.
Rudawska; T. Trojanowski; P. T. Kazibudzki,
T. Trojanowski, should be suggested [1, 12-13]
The sustainable marketing mix of food
industry companies includes four instruments of
marketing impact on customers - a sustainable
product [14-15], a sustainable price [16-17],
sustainable distribution [18-19] and sustainable
promotion mix [20]. Proper management of the
marketing mix elements by managers of food
industry enterprises is associated with achieving
not only financial benefits, but also social and
environmental advantages.
A balanced marketing composition is
important for the success of the business on the
market because it directs the organisation's
activities not only to the sale of products, but
also to meeting the needs of buyers who are not
indifferent to social and environmental aspects.
The use of marketing mix instruments
supporting sustainable development by food
industry enterprises is particularly important
because production processes significantly
affect the condition of the natural environment,
thus contributing to environmental and social
problems. The concept of a sustainable
marketing mix assumes the introduction to the
market of food products that will be able to
properly meet the needs and desires of buyers,
while having a minimum impact on the natural
environment.
3 Research Methods
Research carried out in this article concerns
food industry enterprises. The aim of the study
was to identify strengths and weaknesses as
well as opportunities and threats to the
development of sustainable marketing mix in
Polish food industry enterprises. In order to
carry out the SWOT analysis, information on
the actual state of the phenomenon under study
was collected.
The conducted research used the method of
personal interview, the advantage of which is
high credibility, ensured by the possibility of
asking questions directly related to the studied
phenomena. Direct contact with the respondent
while asking questions made it possible to
deepen specific thematic issues, and also gave
the respondent the opportunity to develop and
justify his statements. The interview was
conducted in the places where the surveyed
companies have their headquarters.
The research also used the CATI interview
method. This type of research method makes it
possible to carry out research on large, targeted
samples in a short time and at low costs. In
addition to the CATI method, the study also
used the CAWI method, in which the
respondent was asked to fill in a research
questionnaire in an electronic form included in
web application. The CAWI method, as in the
case of the previous method, also makes it
possible to conduct tests on very large samples,
in a short time and at low test costs. In addition,
the advantage of this method is the anonymity
of the respondent, and thus freedom in
answering, for example, questions about the
amount of earnings. The overall aim of the
methods used was to get to know the facts and
capture as many details as possible in relation to
the questions posed. The research was carried
out on a random sample of 109 enterprises. The
response rate was 68%, which is 74 companies.
The tool used to conduct the research was a
research questionnaire containing an ordered
list of questions. It covered questions about four
areas of marketing mix - product, price,
distribution and mix promotion. The research
used a seven-point version of the Likert scale in
order to increase the accuracy of the
measurement.
4 SWOT Analysis Results
The data obtained as a result of the research study
made it possible to analyse the individual elements
of the marketing mix. Tables 1, 2, 3 and 4 present a
SWOT analysis on the elements of sustainable
marketing mix in food industry enterprises.
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Table 1. SWOT analysis sustainable product
Sustainable ProductPRO
Strengths
Weaknesses
Companies
design products
taking into
account their
impact on the
natural
environment
PRO
- W1
Enterprises do
not use
packaging made
from fully or
partially
recycled raw
materials
Companies
design products
taking into
account their
impact on the
health of
consumers
Companies save
energy, water
and fuel needed
for production
Companies
effectively
manage human
capital while
respecting
employee rights
Development
opportunities
Development threats
Enterprises are
gradually
reducing the
types and
quantities of
materials used
to produce
packaging, e.g.
foil, paper,
plastic,
aluminium, etc.
PRO
- T1
Enterprises do
not intend to use
renewable
sources
Enterprises
gradually reduce
the emission of
harmful gases,
dusts,
fragrances,
industrial
wastewater, and
the generation
of production
waste
PRO
- T2
The companies
do not intend to
introduce
modifications to
create
ecological
packaging
Enterprises are
gradually
reducing the
PRO
- T3
Activities of
competitive
companies in
content of such
raw materials
as: white sugar,
chemical
preservatives
and
preservatives,
flavour
enhancers,
artificial
colours, trans
fats, etc.
the area of
production
Source: Own study
Taking into account the first element of the
marketing mix, i.e. the product, it can be concluded
that enterprises are engaged in activities aimed at
introducing to the market food products that are
characterised by the characteristics of sustainability.
Regarding the product, four strengths of sustainable
product development (PRO-S), one weakness (PRO-
W), three opportunities (PRO-O) and three threats
(PRO-T) have been identified.
Table 2.SWOT analysis sustainable price
Sustainable Price(PRI)
Strengths
Weaknesses
PRI
- S1
Enterprises in the
prices of products
take into account
the costs of
purchasing raw
materials and
materials for
production
PRI -
W1
Enterprises do
not take into
account labour
costs in their
product prices,
e.g.
occupational
health and
safety, social
welfare
PRI
- S2
Enterprises
include the costs
of transporting
and storing
products in their
product prices
PRI
- S3
Enterprises take
into account
labour costs in the
prices of products,
e.g. ensuring
occupational
health and safety,
social welfare
Development
opportunities
Development threats
PRI
Increased
PRO
In their product
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- O1
consumer interest
in the purchase of
environmentally
friendly food
products
- T1
prices,
enterprises do
not intend to
take into
account the
costs associated
with reducing
the emission of
harmful gases,
dusts,
fragrances,
industrial
wastewater,
and production
waste.
PRO
- T2
Enterprises do
not intend to
include
packaging
recycling costs
in their product
prices
PRO
- T3
In their product
prices,
enterprises do
not intend to
take into
account the
costs of
treatment
related to the
consumption of
food products,
e.g. the costs of
treating
obesity,
diabetes, tooth
decay, etc.
Source: Own study
The second element of the marketing mix that
was analysed is the price. In this case, it can be seen
that the price has three strong trait of sustainable
price development (PRI - S), one weak trait (PRI -
W), one opportunity to develop sustainable prices
(PRI - O) and three threats to sustainable product
pricing. food (PRI T).
Table 3.SWOT analysis Sustainable distribution
Sustainable Distribution(DIS)
Strengths
Weaknesses
DIS
- S1
Enterprises
optimize product
deliveries by
choosing the right
DIS
-
W1
Enterprises do
not use
environmentally
friendly means of
route (shorter,
faster routes)
transport, e.g.
hybrid cars,
electric cars,
LPG-fuelled cars,
etc.
DIS
- S2
Enterprises
combine
deliveries to
several recipients
simultaneously
DIS
-
W2
Enterprises do
not optimise
distribution
channels by
reducing
intermediaries
involved in
distribution
processes
DIS
- S3
Enterprises adjust
the means of
transport to the
amount of
transported goods
DIS
- S4
Enterprises
maximise the use
of transport space
by proper
arrangement of
products in
means of
transport
DIS
- S5
Enterprises
monitor and
control drivers'
working time in
order to avoid
road accidents
DIS
- S6
Enterprises use
environmentally
friendly resources
and devices
Development chances
Development threats
DIS
- O1
Companies
intend to phase
out means of
transport with
high emissions
and noise
DIS
- T1
Enterprises do
not intend to
select
intermediaries in
terms of
environmental
and social
sensitivity
Source: Own study
Carrying out further considerations in the area of
SWOT analysis of the sustainable marketing of the
mix of food products, one should refer to another
element, which is distribution. In this case, the
results of the analysis indicate as many as six
strengths of the implementation of sustainable
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distribution of food products (DIS-S), while two
weak features of sustainable distribution (DIS-W)
have been identified. One development opportunity
(DIS-O) and one threat (DIS-T) in achieving
sustainable distribution have also been identified.
Table 4. SWOT analysis Sustainable promotion
Sustainable Promotion (Communication)
(COM)
Strengths
Weaknesses
COM
- S1
Enterprises post
the content of
promotional
messages that is
transparent and
credible
COM
- W1
Enterprises do
not publish
promotional
messages that
are educational
in nature
COM
- S2
Enterprises post
promotional
messages via the
Internet
(banners,
advertisements)
COM
- W2
Enterprises do
not publish
promotional
messages that
emphasize pro-
ecological and
pro-social
features of
product
Development chances
Development threats
COM
- O1
Enterprises
intend to resign
from publishing
announcements
in the form of
press articles,
brochures and
promotional
leaflet
COM
- T1
Enterprises do
not intend to
post
promotional
messages that
inform
consumers
about the
ecological and
social activity
of the
enterprise
COM
- T2
Enterprises do
not intend to
post
promotional
messages that
encourage the
purchase of
pro-ecological
and pro-social
products
manufactured
by the
company
Source: Own study
The last, fourth element of the marketing mix
that was investigated is the
promotion/communication of food industry
enterprises. With regard to corporate
communication, two strengths of the development
of sustainable communication (COM-S) and two
weaknesses of communication (COM-W) can be
identified. The situation is similar in terms of
opportunities and threats. As a result of the analysis,
one development opportunity (COM-O) and two
threats that occur in the implementation of
sustainable promotion/communication (COM-T)
were identified.
To better illustrate the conducted analysis, the
results are presented graphically in Figure 1.
Fig. 1: SWOT analysis of sustainable marketing mix
of enterprises in food industry.
4 Conclusion
The reason for the subject matter of the study is
the rapidly progressing degradation of the
natural environment caused by the economic
activity of production companies, including the
food sector. The negative effects of the
economic activity of enterprises contribute not
only to the degradation of the ecological
0246
2T
1O
2W
2S
1T
1O
2W
6S
3T
1O
1W
3S
3T
3O
1W
4S
Product PRO
Price PRI
Distribution DIS
Communication
COM
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2021.17.92
Tomasz Trojanowski
E-ISSN: 2224-3496
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Volume 17, 2021
environment, but also to the emergence of
social problems [21].
A production company that wants to define
itself as a sustainable organisation should first
adopt the principles of sustainable development,
and then implement them in the individual
organisational structures of the company.
Employee personnel is an important factor that
determines the company's success in conducting
sustainable economic activity. Especially senior
management is the body that defines the
mission and goals of the organisation focused
on the sustainable conduct of the entire
company, with particular emphasis on the
concept of the marketing mix [22].
The conducted SWOT analysis allowed to
identify the features that may have
a significant impact on the development of a
sustainable marketing mix in food industry
enterprises in Poland. The results of the analysis
indicate which areas of the marketing mix are
characterised by sustainability features and
which require improvement and refinement.
SWOT analysis covers four elements of the
marketing mix, i.e. product, price, distribution
and promotion mix, but according to the author
of this study, one should not forget about the
fifth element, which is the aforementioned staff.
The theoretical considerations, conclusions and
analysis of the research results included in the
study do not fully solve the subject matter.
Therefore, it remains an open question to search
for new and creative solutions aimed at
reconciling the economic development of food
industry enterprises, as well as other economic
entities, with ecological and social values. The
article may support enterprises that strive for a
balance between the company's activities aimed
at achieving financial goals and the
environmental and social environment.
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