Shades of green marketing

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Webinar on green marketing topics, presented in 2010.

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<ul><li><p>| October 27, 2009</p><p>Prepared and submitted by:BURNS MARKETING COMMUNICATIONS</p><p>Shades of Green MarketingGoing Green without Going Overboard </p><p>Copyright 2009. All rights reserved.</p></li><li><p>AGENDA Greening an officeGreen Ps_ Paper_ Printing_ Promotional items</p><p>Green marketing GreenwashingGreen fatigue?Green conclusionGreen questions</p></li><li><p>GREENING AN OFFICE</p><p>Running a green office is both good for the environment and the bottom line, as conserving resources and cutting waste saves money.</p><p>Little things you can do at your company:_ Recycle paper, commingled containers, and ink </p><p>cartridges/old computer equipment_ Set automatic duplexing on printers_ Install fluorescent/compact fluorescent light bulbs_ Turn off lights at night_ Program thermostat_ Use Energy Star appliances_ Bring reusable coffee mugs, plates, and utensils_ Opt for virtual meetings (conference calls, WebEx, etc.)_ Carpool_ Shut down (not just log off) computers at end of day_ Use less paper and buy recycled paper</p><p> Look for a high percentage of post-consumer content and minimum of processed chlorine bleaching</p><p>_ Switch to green cleaning products</p></li><li><p>GREEN Ps</p><p>PaperPrintingPromotional items</p></li><li><p>GREEN PAPER</p><p>Choose paper that is:_ Recycled, preferably 80- to 100-percent post-</p><p>consumer waste (PCW)_ Chlorine free</p><p> Elemental chlorine free (ECF) Totally chlorine free (TCF) Processed chlorine free (PCF) for recycled paper</p><p>_ Uncoated_ Forest Stewardship Council (FSC) certified </p><p> Contributes to conservation, responsible management, and community level benefits for people near the forests that provide the paper</p><p>_ Made by renewable energy sources_ Treeless</p><p> For example: hemp, kenaf, sugar cane, cotton, Cranes Denim Blues and Old Money, TerraSkin (made of stones), etc.</p></li><li><p>GREEN PRINTING</p><p>Whats the problem with printing?_ The pulp and paper industry is the third largest </p><p>industrial polluter to air, water, and land in the United States and Canada, and releases over 100 million kg of toxic pollution each year. </p><p>_ Petroleum-based inks damage the environment and our health with volatile organic compounds (VOCs).</p><p>_ The printing process itself is hazardous with the toxic pollutants such as solvents, shellacs, driers, and other solutions employed in producing film, printing plates, and cleaning presses.</p></li><li><p>GREEN PRINTING </p><p>(continued)</p><p>How can you print green?_ Use vegetable-based inks or soy inks instead of </p><p>petroleum-based inks These alternatives are low in VOCs, made from a </p><p>renewable resource, competitively priced, and make paper easier to recycle.</p><p>_ Look for a printer that uses renewable energy sources (e.g., wind and solar power)</p><p>_ Try waterless printing, which eliminates the dampening systems used in conventional printing</p><p>_ Go digital, which avoids the film and chemicals in traditional printing</p><p>_ Avoid bindings, adhesives, or foil stamps that render printed items unrecyclable</p><p>_ Reduce ink usage by going with one- or two-color designs</p><p>_ Save paper by using standard press size sheets</p></li><li><p>GREEN PROMO ITEMS</p><p>Promotional products companies are capitalizing on the green movement.Examples of available items:</p><p>_ Bamboo or organic cotton apparel_ Biodegradable plastic products (e.g., bags, pens, etc.)_ Recycled material shopping bags, portfolios, etc._ Recycled paper calendars, notepads, etc._ Recycled plastic cups, water bottles, Frisbees, etc._ No-battery and water-battery gadgets (e.g., </p><p>flashlights, clocks, calculators, disposable cameras, etc.)</p><p>_ Eco-friendly golf balls_ Plants and seeds in biodegradable packaging</p></li><li><p>GREEN MARKETING</p><p>Marketing of products, services, or companies that are presumed to be environmentally friendly, sustainable, or socially responsible. </p><p>_ Ingredients/materials_ Packaging/design_ Production/manufacturing process_ Alternative energy_ Organic_ Local_ Fair trade_ Philanthropic_ Corporate social responsibility</p></li><li><p>GREEN MARKETING </p><p>(continued)</p><p>The five simple rules of green marketing: (Jacquelyn Ottman, MarketingProfs, November 20, 2007)</p><p>_ Know your customer First, make sure that the consumer is aware of and </p><p>concerned about the issues that your product addresses.</p><p>_ Empower customers Make your customers feel that by using your product, they </p><p>can make a difference (either alone or together with all the other users). Empowerment is the main reason consumers buy green products.</p><p>_ Be transparent Consumers must believe the legitimacy of your product </p><p>and the specific claims youre making. Theres a lot of skepticism out there now because of greenwashing.</p><p>_ Reassure the buyer Consumers must believe your product does what it is </p><p>supposed to do they wont forgo product quality to save the environment.</p><p>_ Consider your pricing Make sure consumers can afford a premium price and feel </p><p>its worth it.</p></li><li><p>GREEN MARKETING </p><p>(continued)</p><p>Generation Ys favorite green brands (Outlaw Consulting survey):_ Companies that are going beyond the niche segment </p><p>of hard-core Greenies to win-over Gen Y (ages 21-29) influencers. </p><p>_ These brands are not necessarily the leaders in the issues of sustainability, but they are trendsetters in image categories.</p><p>_ Qualities of these standout companies include: Trailblazers that went green long before competitors. Brands with clean, minimalist design. Products in categories that are key to basic needs (e.g., </p><p>food, clothing, health/beauty).</p></li><li><p>CASE STUDIES</p><p>Sprint Reclaims some green cred._ The green-themed smart phone is loaded with green </p><p>content, eco-conscious accessories, and sustainable packaging.</p><p> Content from Planet Green provides basic green info Preloaded eco-sonic ringtones including chirps and </p><p>ribbits More environmentally-conscious instruction book Postage-paid recycling bag included for your old phone</p><p>_ 80-percent is recyclable material, 40-percent of the casing is made from corn-based bio-plastic bulk of other phones are also made of recyclable material.</p><p>_ Sprint is committed to recycling 90-percent of the phone they make by 2017.</p><p>_ Green or greenwash? They have taken real steps towards cleaning up an </p><p>industry that contributes an incredible amount of material into the global e-waste stream. Timothy B. Hurst</p></li><li><p>CASE STUDIES</p><p>Burts Bees attacks the ingredient, not the brand._ Consumers can easily get confused by what </p><p>constitutes natural products, and are unwittingly buying products with ingredients they want to avoid.</p><p>_ To address this confusion, Burts Bees advertising depicts the difference between the benefits of natural ingredients in their products versus the surprising, icky ingredients in non-natural products.</p><p>_ In this ad, petroleum, which is found in many lip balms, is defined as a nonrenewable hydrocarbon made from crude oil sometimes used to stop corrosion in car batteries.</p><p>_ Beeswax, on the other hand, is a naturally replenishing moisturizer made by bees.</p></li><li><p>CASE STUDIES</p><p>Tide Coldwater a benefit shift._ While many green products focus on the environmental </p><p>benefits, Tide Coldwater promotes consumer savings.</p></li><li><p>CASE STUDIES</p><p>Levi Strauss practices Goodwill._ The beginning and ending of jeans lifecycle are the </p><p>most carbon/energy intensive parts of the chain._ Levis Strauss is working to increase its use of organic </p><p>cotton, but what are they doing for the end of the lifecycle?</p><p>_ A partnership with Goodwill encourages Levi owners to donate their jeans rather than toss em. </p><p>_ The Levi Strauss/Goodwill partnership helps to: Prevent jeans from landing in the landfill. Provide clothing to people in need. Supply job training for at-risk populations.</p></li><li><p>CASE STUDIES</p><p>Agency raises clean water awareness._ A Belgian agencys pro-bono creative grabbed peoples </p><p>attention on the issue of clean water. Every 15 seconds a child dies from a disease caused by </p><p>lack of clean drinking water.</p><p>_ A boy would run into live broadcasts and grab a glass of water, drink it, then run off again.</p><p>_ Only producers, not the on-air talent, were informed of the stunt to keep the reactions as real as possible.</p><p>_ The message was that its not so normal to have a glass of water its not in reach for millions of people.</p><p>_ The live interruptions were gathered and broadcast as a commercial that explained who was behind the events and why.</p><p>_ The effort raised 3.3 million euros (1 million from the Belgian government).</p></li><li><p>CASE STUDIES</p><p>Denver Water uses only what it needs. _ Denver Waters campaign (by Sukle) to help conserve </p><p>during the summer months in Colorado.</p></li><li><p>GREEN WASHING</p><p>Greenwashing describes the act of making an unsubstantiated or misleading claim about the environmental soundness or benefits of a product, service, technology, or company practice.Greenwashing is essentially an environmental twist on whitewashing a coordinated attempt to hide unpleasant facts, especially in a political context.Greenwashing watch sites:</p><p>_ Greenwashing Index (EnviroMedia)_ Stop Greenwash (Greenpeace)</p><p>A 2008 survey shows that a rising number of Americans (currently 68-percent) think companies exaggerate their environmental initiatives.</p></li><li><p>GREEN WASHING </p><p>(continued)</p><p>The six sins of greenwashing (TerraChoice):_ Sin of the hidden trade-off</p><p> Suggestion that a product is green based on an unreasonably narrow set of attributes without attention to other important environmental issues.</p><p>_ Sin of no proof An environmental claim that cannot be substantiated by </p><p>easily accessible information or third-party certification.</p><p>_ Sin of vagueness Any claim that is so poorly defined or broad that its real </p><p>meaning is likely to be misunderstood by the consumer.</p><p>_ Sin of irrelevance A claim that may be truthful, but is unimportant and </p><p>unhelpful for consumers seeking environmentally preferable products.</p><p>_ Sin of lesser of two evils Green claims that may be true within the product </p><p>category, but risk distracting the consumer from the greater environmental impacts of the category as a whole.</p><p>_ Sin of fibbing Environmental claims that are simply false.</p></li><li><p>CASESTUDIES</p><p>General Motors promises Gas-Friendly to Gas-Free._ GMs campaign highlights ways Chevrolet is </p><p>greening its fleet: Increasing fuel efficiency Producing E85 ethanol vehicles Developing hybrids, plug-in hybrids, and fuel cells</p><p>_ Web site, commercials, and print ads feature green-friendly images that suggest GMs support for the environment.</p><p>_ GREENWASH As this campaign was launched, GM was lobbying </p><p>Congress to stop the increase of fuel economy standards and is still a leading producer of gas-guzzling vehicles.</p></li><li><p>CASESTUDIES</p><p>Bottled water gets in eco-shape?_ Fiji water tells consumers that every drop is green</p><p>and fijigreen.com promotes the companys promise and progress toward going carbon negative, saving the rainforest, reducing packaging, and recycling.</p><p>_ Nestle brand bottled waters have a new eco-shapebottle featuring 30-percent less packaging.</p><p> The lightest half-liter bottle ever produced.</p><p>_ GREENWASH Bottled water is still extremely environmentally unfriendly </p><p>when you factor in the energy used and pollution emitted with transportation (especially from Fiji), distribution, and plastic packaging.</p></li><li><p>CASESTUDIES</p><p>Sigg hits plastic status._ Sigg metal water bottles have been popular with those </p><p>looking to avoid plastic water bottle waste and the dreaded BPA compound.</p><p>_ GREENWASH The companys reputation tanked after consumers </p><p>discovered the aluminum water bottles were found to have BPA.</p><p> The company was careful to avoid saying BPA was in its products it now admits that the compound was present until production changes occurred 13 months ago.</p><p> I bought the Sigg bottles thinking they didn't have it in there, but they did in fact have it. I feel cheated and lied to. San Francisco resident Mai Mai Wythes</p></li><li><p>CASESTUDIES</p><p>Shell oil emits flowers and admits foul._ Shells ad showing oil refineries spewing flowers </p><p>instead of smoke claims that it uses its own waste CO2 to grow flowers and waste sulfur to make concrete.</p><p>_ So many complaints were filed that Royal Dutch Shell was ordered by the Dutch Advertising Code Authority to withdraw the ad.</p><p> However, the ad continued to run in other European countries, including Britain.</p><p>_ GREENWASH The ad implies all of Shells waste CO2 is recycled, while </p><p>in reality, only tiny percentages of Shells waste products are recycled for flowers and concrete, etc.</p><p> Shell boasts that a refinery in the Netherlands pipes CO2 to heat greenhouses, saving 350,000 tonnes of carbon dioxide a year. But this is only 0.325-percent of Shells direct emissions, estimated by Shell to be 100 million tonnes in 2005.</p></li><li><p>GREENFATIGUE?</p><p>Consumers are in a green fog. _ Eco-friendly messages are so pervasive that it can be </p><p>confusing and frustrating to understand which are meaningful, which are just hype, and how to make wise decisions on purchases and personal actions.</p><p>Skepticism is strong._ 64-percent of consumers view sustainability campaigns </p><p>as little more than a marketing tool opportunism on the part of big business. (Source)</p><p>The green market is not yet mature and consumers still lack an understanding of going green.</p><p>_ About one in three consumers say they dont know how to tell if green product claims are true. (Source)</p><p>_ Half of consumers say a companys environmental record is important in their purchasing decisions. (Source)</p><p> But only 21-percent said this had actually driven them to choose one product over another.</p><p> And a mere 7-percent could name the product they purchased.</p></li><li><p>GREENFATIGUE? </p><p>(continued)</p><p>But despite confusion, skepticism, and the recession, green products are growing.</p><p>_ In 2009 (as of April), companies have launched 458 products that claim to be sustainable,environmentally friendly, or eco-friendly. (Source)</p><p> If this trend continues, 1,570 new green products will be launched this year triple the amount launched in 2008, which was double the amount in 2007.</p><p>_ Four out of five people say theyre still buying green products and services. (Source)</p><p> Primary influencers in deciding what to buy:. Products reputation: 21-percent. Word of mouth: 19-percent. Brand loyalty: 15-percent. Advertising: only 9-percent</p><p>_ Green shoppers come with desirable characteristics including brand loyalty, lower price sensitivity, and more frequent shopping. (Source)</p></li><li><p>GREENCONCLUSION</p><p>Even though many consumers are experiencing eco-anxiety and shutting down to green marketing, they are still intrigued and influenced by sustainability considerations.And, some companies are truly making progress reaching consumers with the right strategy and messages.Tips for engaging consumers:</p><p>_ Be honest and transparent with your efforts and true company values. </p><p>_ Create remarkable, lovable products that are both hip and green.</p><p>_ Invite customers to participate in the brand and be your ambassadors.</p><p>_ Partner with established non-profits, etc._ Move beyond the green fad into sustainability </p><p>continuous improvement. Address not only the environment, but your affect on the </p><p>greater society and your local community.</p></li><li><p>QUESTIONS?</p></li></ul>