Iceland Foods Ltd is a British groceries retailer specializing in selling frozen goods: fruits, vegetables, and pre-packaged meals. Iceland concentrates on providing consumer items at low prices, and the firm is growing increasingly interested in selling higher-quality cuisine to broaden its clientele (Hooley et al., 2020). The company has differentiated itself in the market via campaigns emphasizing sustainability and natural taste in advertisements about excluding palm oil from brand-labeled foods and excluding genetically modified consumables (Hooley et al., 2020). However, the exclusion of palm oil was the campaign failed to deliver its promises on time and could be said negatively impact the brand image (Ng, 2022). Moreover, the necessity for such a campaign was questionable as instead of the abolishment of palm oil products in the protest against deforestation; it is far more favorable to conduct sustainable manufacturing of the ingredient.
Nevertheless, the campaign did not have a lingering effect due to the company’s return to palm oil products. The decision followed the shortage of sunflower oil and the recent COVID-19 outbreak (Ng, 2022). In 2018, the company promised to eradicate plastic from its shelves by 2023, but the feasibility of such a bold statement is questionable (Hooley et al., 2020). Therefore, a more comprehensive approach to the retailer’s marketing strategy should be implemented with reference to the SMART (Specific, Manageable, Achievable, Realistic, Time-Bound) set of goals. Furthermore, as the company aims to maintain its brand image around the sustainability of the products delivered, it is necessary to ensure certification of the suppliers and create the association of environmentally conscious products with the company.
The announcement of the plastic removal objective was a clear and concise message that led to high media coverage of the company. However, the announcement alone does not account for the actual reorganization of the supply chain that will fulfill the promise, and the broad scope of the message may negatively impact corporate social responsibility and integrity. Therefore, the first strategy would be an admission of the past failure related to the Rang-tan advert and redirection of the plastic abolishment towards manageable halving as the first steppingstone. The redirection could be accomplished via clear delivery of how by 2023, the company would achieve the goal and demonstrate ongoing progress on the corporate website available to the customers.
The halving is achievable and realistic with the suggestions introduced by the Greenpeace organization that emphasized what products account for major carbon footprints and how to tackle their negative consequences. Greenpeace (Bullett, 2022) suggested five core changes that may allow halving of plastic consumption. These changes include implementing a reusable packaging system, introducing in-store refills, selling concentrated cleaning liquid instead of regular cleaning products, eradicating unnecessary plastic packaging, and selling loose fruits and vegetables (Bullett, 2022). These steps would significantly reduce plastic products within the store and outside of it while nurturing clients to follow a sustainable lifestyle.
The second strategy that could positively impact Iceland Foods’ branding is certification and assessment of the suppliers. The company could organize a division that will assess the quality and sustainability of the methods used by manufacturers to reassure its customers and create an even stronger brand image that will create an association with eco-friendliness. Although the certification process is tedious, the assessment could be done by constraining suppliers to certain eco-friendly resolutions and conducting annual supervising of negotiated terms. Then assessment results could be published on the website for transparency. Objectively, if the resources could be allocated for the cause, it would be possible to organize the necessary team within a fiscal year, and the effect may bear lasting results for the company.
In conclusion, Iceland Foods was negatively impacted by the Rang-tan commercial as it failed to deliver its promises to the customer and had to revoke advocation of the anti-palm-oil campaign. However, the company may reinforce its brand image via redirecting its plastic resolutions and aspiring toward a transparent supply chain that will follow company-specific guidelines on environmental efforts. As a result, it will create a strong brand image around sustainability and integrity.
Reference List
Bullett, J. (2022) ‘How supermarkets can halve plastic packaging.’Greenpeace UK.
Hooley, G. et al. (2020) Marketing strategy and competitive positioning. 7th edn. Harlow: Pearson Education, Limited.
Ng, K. (2022) ‘Iceland to go back to using palm oil ‘with regret’ amid rising food prices.’The Independent.