Thesis (MBA)--Stellenbosch University, 2011. / This case study explores why the strategic positioning of the wall-panel heater, manufactured by
Econo-Heat, justifies a green marketing strategy. The primary research objective is to provide
Econo-Heat with a coherent marketing strategy framework, based on the outcome of the strategic
analysis of the competitive positioning of the wall-panel heater. The following factors form the
context of the study: the impact companies have on the environment, the energy crisis and the
rising “green economy” in South Africa, and the increased consumer awareness about lifestyle
consequences for the environment.
The wall-panel heater uses convection-heating technology to warm rooms and has unique selling
properties, such as being energy efficient, economical, effective and safe. Other space-heating
products found in South Africa do not encapsulate all these qualities in one product. A strategic
analysis done of the company revealed that the current competitive positioning of the wall-panel
heater is a best-cost strategy. However, based on a literature review, the strategic analysis of the
company and an exploration of the small household appliance consumer profile, the study found
that the current competitive positioning of the wall-panel heater could be augmented. The
combination of factors revealed by this study could be interpreted as push-factors towards the
implementation of an applicable green marketing strategy that could support the re-positioning of
the wall-panel heater to a broad-differentiated competitive positioning. These factors are the
unique selling properties of the wall-panel heater, the lean manufacturing principles of the
company, the rising green economy in the country, the energy crisis and the slow recovery from
the global financial crisis in South Africa, as well as the unique characteristics of the
environmentally-focused consumer. The view is held that green marketing can mitigate mass
consumption.
The case study suggests a future marketing strategy framework that consists of three combined
elements. First, the argument is made that the unique selling properties of the wall-panel heater in
combination with the unique operations of the company, against the backdrop of external factors
that influence companies and consumers (i.e. the rising green economy and the energy crisis),
could be utilised to discover new market space. The concept of “lateral marketing” is suggested as
a framework should the company position itself to differentiate along the green dimension.
Secondly, the “green marketing strategy matrix” is suggested as a framework to establish the size
and greenness of its consumer segment, as well as the ability to differentiate along the green
dimension. Lastly, the suggestion is made that the marketing objective of the company (its
greenness) can be measured through the application of a “green marketing grid” that leads to
innovation and the challenging of consumer behaviour. The combination of these elements is
thought to form a coherent green marketing framework that could in future place the product at a
strategic and competitive advantage within the space-heating industry.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/21376 |
| Date | 12 1900 |
| Creators | De Klerk, Edwin Cavin |
| Contributors | Herbst, F. J., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Rights | Stellenbosch University |
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