CARGILL SUSTAINABILITY MARKETING Juan-Victor Seminario, Karena Mahung, Osman Sengul, Randall Brown, Tao Jiang (Tony)

Facts  The largest private-hold company in terms of revenue ($134.9 billion in 2014)  67 countries. 143,000 employees  6 regions: North America, Asia Pacific, Latin America, Europe, Sub-Saharan Africa and North Africa/Middle East Agriculture commodity trading and processing Food ingredients and products Meat, poultry and eggs farmer services animal feed and nutrition Energy & industrial products Financial service 7 business units Some Customers  Vision: Expresses the collective aspirations of the people who work here. It unifies us, directs our efforts and sets us apart from other companies  Purpose: To be the global leader in nourishing people  Mission: To make food more abundant, accessible, safe and nutritious, and to support sustainable and responsible practices

Sustainability & CSR Improvement in energy efficiency Renewable sources in energy portfolio Improvement in greenhouse gas intensity Improvement in freshwater efficiency 2014 Progress 2015 Goal 2014 Progress 2015 Goal 2014 Progress 2015 Goal 2014 Progress 2015 Goal 4.6%5%14.3%12.5%5.1%5%8%5% CSR: Cargill improved the livelihoods of more than 100,000 people from rural farming communities in emerging markets. Some examples include: Partnering with Coca Cola and the World Wildlife Fund in China to improve the livelihoods of smallholder farmers Offering financial tools to manage price volatility to help farmers in Romania gain better access to seeds, fertilizers and technology Invested $30 million to construct a chicken processing facility in Russia and help community with vocational school, building new playgrounds and refurbishing the local children’s hospital. Cargill’s 2014 Sustainability report

Current Marketing Strategies  In the United States Cargill has a limited general marketing strategy in regards to marketing to consumers since they are known as B2B company in this region Awards in sustainability:  2014 McDonald’s Best of Sustainable Supply Awards (7 awards)  2013 Presidential Green Chemistry Award  2011 Design for the Environment Award  2011 ENERGY STAR Award  2011 Connekt Sustainable Logistics’s Lean and Green Award  In certain international regions, however, Cargill does operate as a B2C company with products that they sell directly to consumers but use a brand name other than the Cargill name In Brazil, Cargill has consumer brands sold in supermarkets such as “Liza”, “Mazola”, “Mariana”, and “Purilev” In India, they had a commercial for Sweekar oil using a famous Indian chef to market to consumers

Cargill should devise and implement both a B2B and a B2C marketing strategy that is aligned with the company’s overall corporate culture and business strategy which embrace strong sustainability and social responsibility practices ASSESSMENTS & RECOMMENDATIONS

Marketing Assessments Cargill has been able to position and differentiate themselves as a world leading supplier with sustainability focused core values that can help bring more sustainable, natural and corporate socially responsible products to major household brand names such as McDonalds Strength Cargill has a limited marketing strategy with regard to consumers but does promote its sustainability efforts through awards given to Cargill by its business customers Cargill has a commitment to sustainability that is well perceived by its customers but does not necessarily target “green” customers through either its B2B or B2C aspects Weakness Cargill’s current marketing strategy does not communicate this well to consumers and as a result there is substantial opportunity to more properly and adequately communicate and promote their sustainability efforts and products which can help drive the sustainability aspect of their corporate mission as well as their bottom line Opportunities

Business to Business Make use of McDonalds to promote Cargill brand on their marketing campaigns (packaging, website, commercials etc.), emphasizing how the eggs (McDonalds USA) or Chicken McNuggets (McDonalds Russia) are sustainably produced and sourced by Cargill. Cargill Co-Branding Cargill Co-Branding Brand Content Marketing: “Opening the backstage door” Use the influence and power of social media to visually demonstrate their engagement with local farmers and investment in rural development in countries such as Brazil, Indonesia and others. Example: GE #InstaWalk Integrate Cargill’s VI in their customers’ media and marketing campaigns, which can be dually shared with the member bases of the partners, as well as Cargill’s business and consumer bases

Business to Consumers Cargill can create campaigns targeting “green” corporate customers and/or consumers to capture the value of its current sustainability measures This can be done by maximizing the marketing potential and perceptual differential advantage that partnerships and projects pursued with well-known and respected conservation organizations such as The Nature Conservancy and the World Wildlife Fund can provide Cargill can use its own brand as the “Endorser Brand” to the local brands such as “Liza” or “Mariana”. In this way, Cargill could leverage the local brands to better penetrate local markets, and at the same time it would be able to promote the Cargill “master” brand by providing support and assurance to the local “endorsed” brands’ equities Mockup references Example

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