Sustainable Marketing in China: The Case of Monmilk

It (sustainability) says something about a moral obligation that we are supposed to have for future generations. Robert M. Solow How can a firm engage in the adoption of sustainability practices? Chapter Overview Sustainable development refers to satisfying the current needs without sacrificing the needs for the future generations (Brundtland & Khalid, 1987). The sustainability movement is regarded as the bringing together of a diverse group of stakeholders to share a common “worldview”. The term “sustainability” is predominantly studied as a multidimensional construct requiring implementation of long-lasting relations with customers, and with natural and social environments in terms of strategy and operations. Based on the triple bottom line (3BL), this model incorporates ecological (planet), social (people), and financial (profit) (3P) sustainability. Through these three pillars, firms create unique capabilities that lead to better performance and customer preferences. However, integrating the three pillars may have shortcomings in real marketing practices. Specifically, sustainable marketing practices come down to building and maintaining relationships with various stakeholders, where consumers stand out as the most important group. Meanwhile, the conflict between individual benefits and benefits for the wider environment and society becomes the main obstacle to formulation, or implementation, of sustainability for firms. In recent years, changes in consumption patterns and recent food scandals in China have concerned both Chinese public policymakers and marketers. China, therefore, has much to gain by shifting to more sustainable production methods. This chapter uses the case of Monmilk in China, the top brand in China’s dairy industry, and explores how the company conducts its sustainability practices. The two pillars of people and planet, and the key challenges of 3BL, are highlighted by Monmilk to create a long-term-oriented sustainable development.