2012 challenge gov - using competitions and awards to spur innovation
Target - Eco Consulting Final
1. Captivating the
Next Generation
Prepared by ECO Consulting, Inc.
Presented to
____________________________________
Kate Heiny
Manager of Sustainability
Target Corporation
Prepared by
____________________________________
Ryan Mirow
Laura Summers
Lauren Halpern
Steven Gorski
Leslie Irwin
Jason Hsu
December 3, 2008
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2. Transmittal Letter
ECO Consulting
Wells Library, Fifth Floor
1320 East Tenth Street
Bloomington, IN 47406
December 3, 2008
Kate Heiny
Target Corporation
1000 Nicllet Mall
Minneapolis, MN 55403
Dear Ms. Heiny:
Submitted for your approval is a detailed plan describing how a partnership with the gDiapers company
would serve to increase Target’s sustainability.
After an evaluation of the current market, research has concluded that consumer preference has shifted
towards products that do not harm the environment. This emerging market is still new ground for many
retailers, and while Target is currently working towards sustainability in some categories, a partnership
with one of the premiere infant and toddler supply companies would serve to give Target an edge in this
new market.
Our information was collected through extensive research utilizing independent market data, trade
journals, corporate publications, public media, and privately maintained websites. Using a variety of
sources allowed ECO Consulting to gain an understanding of the sustainability movement from
corporate, small business, and individual perspectives. We believe that analyzing and approaching
sustainability from multiple angles has enabled us to create a complete report and proposal for Target.
ECO Consulting thanks you for providing the opportunity to research and design a plan to help address
your sustainability goals. If you have any further questions, please contact our team at
consult@ECO.com.
Sincerely,
Ryan E. Mirow
ECO Consulting
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3. Table of Contents
List of Figures ...................................................................................................................................... iii
Executive Summary ............................................................................................................................ iv
Introduction......................................................................................................................................... 1
Sustainability ....................................................................................................................................... 2
Growing Environmental Concerns ...................................................................................................... 2
Sustainability in General ..................................................................................................................... 2
Sustainability at Other Organizations ................................................................................................. 3
Sustainability at Target........................................................................................................................ 3
Sustainability Recap ............................................................................................................................ 4
The Next Generation ............................................................................................................................ 5
“Eco-Shoppers” in the Growing Market .............................................................................................. 5
Who Will Care ..................................................................................................................................... 5
Importance of Eco-Friendly Products at Target .................................................................................. 5
Spreading the Word ............................................................................................................................ 6
Where to Focus ................................................................................................................................... 6
Importance of the Next Generation .................................................................................................... 6
Problems with Current Diapers ............................................................................................................ 7
Disposable Diapers and the Environment ........................................................................................... 7
Disposable Diapers and Health Issues................................................................................................. 8
Cloth Diapers and the Environment .................................................................................................... 9
Inconvenience of Cloth Diapers .......................................................................................................... 9
Current Eco-friendly and Biodegradable Diapers ............................................................................... 9
Insufficiency of Current Products ........................................................................................................ 9
Introducing a New Product: gDiapers ................................................................................................. 10
Introducing gDiapers ......................................................................................................................... 10
gDiapers’ Sustainability Efforts Thus Far ........................................................................................... 10
gDiapers’ Partnerships to Benefit the Next Generation ................................................................... 11
Benefits of gDiapers at Target ........................................................................................................... 11
Bringing gDiapers to Target............................................................................................................... 12
gDiapers Review ................................................................................................................................ 12
Implementing the Partnership ........................................................................................................... 13
A Shared Set of Values ...................................................................................................................... 13
Supplying the Product at Test Sites................................................................................................... 13
Costs Involved ................................................................................................................................... 14
Importance of Implementation ......................................................................................................... 14
Marketing the Promotion .................................................................................................................. 15
Appealing to the “Green” Consumer ................................................................................................ 15
Promotional Signs In-Store................................................................................................................ 15
Media and Print Advertising ............................................................................................................. 16
Credit Cards ....................................................................................................................................... 16
Team Member Training ..................................................................................................................... 17
Continued Implementation ............................................................................................................... 17
Conclusion ......................................................................................................................................... 18
Works Cited ....................................................................................................................................... 19
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4. List of Figures
Figure 1 Comparison of Waste Produced................................................................................................ 2
Figure 2 Companies Reporting Corporate Responsibility Data ............................................................... 3
Figure 3 Natural/Organic Personal Care Market ..................................................................................... 5
Figure 4 Decomposition Rates of Various Garbage Items ....................................................................... 7
Figure 5 Babies Suffering from Diaper Rash with Cotton and Disposable Diapers ................................. 8
Figure 6 Cost Comparison of gDiapers and Competing Disposable Diapers ........................................ 11
Figure 7a In-store Advertisement 1 ....................................................................................................... 15
Figure 7b In-Store Advertisement 2 ....................................................................................................... 15
Figure 8 New Target Credit Card .......................................................................................................... 16
Figure 9a Credit Card Screen 1 ............................................................................................................... 16
Figure 9b Credit Card Screen 2 ............................................................................................................... 16
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5. Executive Summary
The purpose of this report is to offer Target a plan to increase its sustainability efforts by partnering with
a smaller company, gDiapers. This company can offer a new product to Target’s guests that will not only
increase Target’s profits, but allow its guests to live a “greener” lifestyle. With the growing concern for
protecting the environment, Target can become a frontrunner in this progression.
Sustainability
Twenty-five percent of Americans prefer environmentally conscious products.
Target is known for both its innovation and ability to promote new products through its popular
marketing strategies.
Target has the power to not only raise awareness of environmental issues, but also enable guests to
fulfill their part in sustainability by purchasing the eco-friendly products that Target offers.
The Next Generation
The increase in the natural and organic personal care product market is projected to increase
from $6 to $8 billion from 2006 to 2012.
Mothers are making efforts to inform each other about dangers of current baby care products.
The mothers of the green market are calling for a solution to many baby personal care product
issues, as there are many health risks involved with these products.
Word is spreading of the hazards of baby care products. By introducing a product that solves some of
these problems, Target will gain a larger share in the green market and increase its bottom line.
Current Diapers
The diaper market has no available products that meet the current needs of consumers.
Disposable diapers have numerous consequences in the environment and to babies’ health.
Cloth diapers are more efficient in terms of health and the environment, but they are extremely
inconvenient, causing consumers to ignore their benefits.
Target can flourish in this market by introducing a product that has the convenience of disposable
diapers and the eco-friendliness of cloth diapers.
A New Product and Partnership: gDiapers
The gDiaper flushable liner is septic and compost safe, meaning parents can easily dispose of
soiled diapers through their plumbing or their backyard compost pile.
This smaller liner, when thrown away in a traditional trash receptacle, takes up significantly less
space than the standard disposable diaper in landfills.
Target carrying gDiapers will expand its share in the $6.1 billion baby care supplies market, thus
presenting the company with increased financial opportunities.
As more consumers develop interest and loyalty to Target’s sustainable merchandise, the
gDiapers company will experience tremendous economic gains.
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6. Target and gDiapers both stand to benefit greatly from this partnership. Target, in its efforts to further
communicate its dedication to sustainability, will now carry an environmentally friendly diaper that is
also competitively priced. The associations that gDiapers currently have with other environmental-
conscious organizations will also connect with Target, drawing eco-mindful guests to its stores.
This economic opportunity will enable gDiapers to better execute its company goal of increasing
sensitivity towards the Earth and its future.
Implementing the Program
It would be wise to first introduce the product gradually in well-known sustainable cities across
the country.
Current products would not be entirely removed from Target’s shelves; space would just be
made to supply the gDiapers.
Together, Target and gDiapers can work to provide a more sustainable diaper for new mothers and
babies.
Marketing the Product
Target should promote the products in a way that highlights the convenience, environmental
benefits, and competitive prices relative to current diaper offerings.
By introducing a campaign to directly involve guests in preserving the environment through a
revised REDcard system, Target’s guests can choose where their 5% goes, and see their
donations accumulate with each Target shopping experience.
These marketing methods will lead to an increase in popularity for Target, as the concern for
sustainability is becoming more important than ever before.
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7. Introduction
In order to further establish Target’s reputation as a leader in innovation as well as increase corporate
profits, partnerships with other environmentally conscious organizations should be established.
Specifically, the formation of a partnership with gDiapers will provide the growing number of eco-friendly
consumers with an alternative to the traditional form of diapers.
Problem
Due to the rising concern over the well-being of the environment, consumers are seeking more products
that help protect the environment. Disposable diapers damage the environment due to the lengthy
amount of time needed for them to decompose in landfills. Also, both disposable and cloth diapers can
have negative effects on children because of the dangerous chemicals that they contain, which can
cause children to break out in rashes. Therefore, efforts should be made to sell a new type of diaper
that benefits both the child and the environment.
Purpose and Scope
This report will examine the benefits of a partnership between Target and the developing company
gDiapers. The importance of sustainability will be discussed, as well as the importance of focusing on the
next generation. In order to understand the insufficiency of current products, the dangers of traditional
diapers will be revealed. Following this will be an explanation of the advantages of gDiapers due to their
comparable costs to other diapers and their environmental and health benefits. After this,
implementation and marketing techniques will be explained so that Target and gDiapers can form a
mutually beneficial partnership.
Assumptions
While it is uncertain as to whether gDiapers would actually have an interest in partnering with Target,
this report assumes that this relatively new company would seize this opportunity for a partnership.
Because its products are not commonly known, the exposure that Target could provide could
significantly increase the profits of both gDiapers and Target. Also, gDiapers currently has partnerships
with other small companies, but could benefit greatly from partnering with an established Fortune 500
Company.
Limitations
Because gDiapers is an upcoming organization, it has not released a significant amount of financial
information to the public with regards to income statements or balance sheets. Therefore, specific
numbers pertaining to its revenue and net income could not be located. However, due to the nature of
its eco- and child-friendly products, extensive marketing of these products will allow consumers to
realize the numerous advantages of purchasing these products and create a demand for an alternative
form of diapers.
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8. Sustainability
While Target has been developing practices and selling products that offer both environmental and socio-
economic benefits, further emphasis in this area will not only improve Target’s reputation and profits, but
also preserve the world for future generations.
Growing Environmental Concerns
With the rapidly increasing global population and growing number of environmentally detrimental
industrial methods, the earth is becoming less capable of supporting its inhabitants. Due to the 6.7
billion people on the planet and the rising consumption of natural resources, 1.3 ‘Earths’ are now
needed to support the population’s current living habits. The consequences of gross over-utilization of
resources include climate change, extinctions of varying species, water shortages, and a dramatic
decrease in the amount of natural environments, such as forests and jungles (McMichael 2008).
According to the Global Footprint Network, all of the resources that the earth was able to produce for
2008 had been consumed by September 23. For the remaining three months of the year, humans are in
“ecological debt” and living beyond their means.
Furthermore, the amount of waste produced every year
damages the environment, as landfills are overflowing and
additional places for garbage disposal are greatly needed. Every
American uses a staggering 20 tons of raw materials every year,
and the amount of America’s total annual waste “would fill a
convoy of garbage trucks long enough to reach half-way to the
moon” (“What Is It?”). Continual consumption and depletion of
resources means more waste, and thus the gradual destruction
of the earth to the point that it can no longer sustain life.
Therefore, it is imperative for every individual and every
corporation to do its part to ameliorate this situation.
Figure 1 – Comparison of Waste Produced
Information from “What Is It?” 1995-2008
Sustainability in General
Sustainability was first defined in the 1987 United Nations “Our Common Future” report as
“development that meets the needs of the present without compromising the ability of future
generations to meet their own needs” (Olson 1996). Within the past two decades, this term has gained
increasing popularity with the public and consequently become a core value for businesses to follow. A
study by the National Purchase Diary (NPD) Group, which is a leader in global market research, revealed
that the number of consumers who desire products that are more beneficial to the environment and to
their health has increased 13% since 2000. According to Packaged Facts, which publishes information on
market research, eco-friendly consumers comprise 25% of the American population (Natural and
Organic Personal Care). Clearly, sustaining the environment for the health of individuals and the health
of the world has become a priority for many consumers.
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9. Sustainability at Other Organizations
Numerous companies across the world have recognized the importance of eco-friendly products and
practices. In an analysis by KPMG, the number of U.S. companies releasing sustainability reports
regarding the environment, society, and government has doubled since 2005. The analysis stated that
74% of the top revenue-generating
American companies and 80% of The
Global Fortune 250 are publishing
corporate responsibility data. Also, 61%
of the U.S. companies also included a
formal strategy for sustainability. Even
the United States government has
become a part of the sustainability
movement, as Congress introduced
almost 200 bills involving environmental
issues (Hurson).
Figure 2 – Companies Reporting Corporate Responsibility Data
Information from “KPMG Analysis”October 27, 2008
Both established and upcoming companies have developed sustainability practices. The Wal-Mart
website emphasizes the following three goals: “to be supplied 100 percent by renewable energy, to
create zero waste, and to sell products that sustain our resources and the environment.” Wal-Mart also
experiments with solar power through its two testing sites in California and Hawaii and has created a
“High Efficiency” store in Illinois that is 25% more energy efficient than its other stores. Like Target,
Kroger focuses both on the environment and society and recently held a contest for customers to create
a reusable bag for their stores, thus creating a more interactive approach to saving the environment
(“The Kroger Company”). Companies that revolve around environmental awareness have seen
tremendous increases in profits due to the sustainability movement. Specializing in eco-friendly baby
products, Seventh Generation has seen a 45% increase in sales for 2007, as stated on its website. While
other organizations have realized the importance of sustainability, Target has also implemented its own
sustainable practices.
Sustainability at Target
It is clear that Target realizes the importance of both environmental and socio-economic sustainability
and works to improve its efforts in this area. According to the Target website, 70% of its materials are
reused, recycled, or rethought, and campaigns such as “Target today. Target tomorrow” demonstrate
that environmental concern remains a top priority for the corporation. Target implements eco-friendly
designs and practices in its stores through the 700 organic foods that it sells, its efforts to conserve
water, and its lighting methods that reduce energy costs. However, these strategies do not simply
preserve natural resources—they also benefit communities and society. Through transforming forty
acres of wetlands in Ohio into a natural habitat for wildlife, Target demonstrated its concern for
maintaining natural environments. By giving 5% of its income to charity, it demonstrates its concern for
the improvement of local communities.
Target prides itself on its innovation and emphasis on affordable quality products and is striving to
improve in these areas by becoming more environmentally friendly. Michael Russo, a management
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10. professor at the University of Oregon, conducted a study of 243 companies in the late 1990s which
revealed that “Greener companies tend to promote innovation, conserve valuable resources in their
production systems and enhance their reputation for both prospective employees and potential
customers. They go beyond the minimum required by law, and their shareholders reap the rewards”
(Priesnitz). Target has seen the truth in this analysis, as Fortune Magazine ranked Target as one of
“America’s Most Admired Companies,” and Business Week ranked Target as 24th in the World’s Most
Innovative Companies in 2008 (“Corporate Recognition Awards”). However, further actions must be
taken.
According to the Bureau of Labor Statistics, Americans work an average of 7.6 hours per day (“American
Time Use”). They often realize the importance of being more environmentally aware, but feel that they
do not have the time to make a difference. However, by offering more sustainable products, individuals
can help protect the environment simply by shopping. In order to maintain and exceed the high
standards that it has set, Target must continue to develop eco-friendly methods and products in order
to become a leader in the sustainability movement. In doing so, Target will not only fulfill its core
company values, but it will also improve profits, customer satisfaction and the world as a whole.
Sustainability Recap
Sustainability continues to become an increasingly important concept for businesses to follow. While
Target has prioritized this idea and proven it through its practices and products, it has the opportunity to
become a leader in this area by exceeding current efforts in order to benefit society, the environment,
and the Target Corporation. By analyzing market trends and the Target consumer base, Target can
develop a new strategy to improve its sustainability.
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11. The Next Generation
The current market for sustainable and green products is growing, and Target must find who within the
market will be most willing to purchase its products. After analyzing the current market, focusing on the
next generation will be most beneficial to Target.
“Eco-Shoppers” in the Growing Market
As new research on the hazards of current products emerges, the demand for green and sustainable
personal care products increases every year. Packaged Facts, a major market research publisher, stated
that there were almost 55 million consumers who could be considered an “Eco-Shopper.” All shared the
same preference of “buying products that used recycled paper, banning pollution, paying more for
environmentally friendly products, and looking for natural and organic foods when shopping.”
The natural and organic personal care product market alone saw an increase from $3.9 to $6 billion
from 2003 to 2006, and the market is projected to increase
Natural/Organic Personal Care
to $8 billion by 2012 (Packaged Facts 38). Despite the size of
Market
$10 the new market, many companies struggle to reach its
Market (billions)
members. However, the recent overlap of the green market
$5 and the mass retail market opened the door for companies
to expand their appeal. Since big retailers have introduced
$0 green products, Eco-Shoppers are more interested in the
efforts of larger corporations to expand their appeal. Since
2002 2006 2012
Year
(projected) big retailers have introduced green products, Eco-Shoppers
are more interested in the efforts of larger corporations.
Figure 3: Natural/Organic Personal Care Market
Information from Packaged Facts 2008
Who Will Care
In the same Packaged Facts publication, half of those 55 million Eco-Shoppers were women. Because
the majority of Target’s guests are female, this would be an ideal market upon which to focus. Several
studies conducted to find mother’s opinions on sustainability and protecting the environment concluded
that mothers demand more eco-friendly products in hopes of preserving the environment for their
children. In fact, one study done by Time Magazine stated that 91% of mothers recycle to improve their
children’s future. Today’s actions can greatly impact the next generation. Giving them new means to
preserve the environment for their children without straining their budget will further excite the market,
drawing them to Target and increasing Target’s sales.
Importance of Eco-Friendly Products at Target
Rashes, infections, infertility and developmental issues are only a few of the many problems associated
with the baby personal care products in the current mass retail market. Mothers are eager to adopt a
solution to these problems when they are informed with the information on the hazards of these
products, and they would like to find solutions in the same place they buy the rest of their products.
Since Target carries a wide range of products, guests know that they will be able to find everything that
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12. they need, and they hope that these products will solve these issues. The Target website claims, “From
pregnancy to caring for a new addition, Target provides parents with everything needed for this exciting
stage in their lives.” Although typical retailers carry the basics for baby care, the natural and sustainable
products are often left off the shelves. The addition of new eco- and child-friendly products to the few
available now (Aveeno, California Baby, etc.) would give Target a competitive edge (Target).
Spreading the Word
As studies are released on the dangers of baby personal care products, an increasing number of sources
have been diligently spreading the word. There are thousands of websites promoting the use of greener
and more natural products and informing parents of the potential hazards to which they are exposing
their children. Small-scale organizations like Healthy Child Healthy World post lists of what products to
use and which to avoid, and mothers heed the advice given, hoping to raise a healthier baby.
Of all the forms of product awareness, personal online blogs are the most common and often most
effective. The mother’s goal is to spread her message about green issues from her own perspective
through sites such as MothersGoingGreen, and GreenandCleanMom—and others are listening.
Marketing VOX conducted a survey in 2006 designed to discover how shoppers decide which products
to buy. It is evident that consumers are being influenced by each other, as 91% said that they prefer
brands that other moms recommend (“Word of Mouth”). BIGresearch organized a similar survey that
revealed 91% of consumers search for suggestions from other consumers before purchasing a product
(Furtado). Since word of mouth is the best form of advertisement, mothers post their parenting stories
daily with detailed reasons for what they do and don’t do—and readers follow the advice religiously.
Where to Focus
Mothers are clearly aware of the consequences of their current purchasing habits. In many ways, the
modern mother’s goal is to be as green as possible while raising her children. She should be able to
raise her children using materials that will not adversely impact her goal. The easiest way to accomplish
this is by using eco-friendly baby products, preferably one that claims a large portion of the baby
personal care market. Packaged Facts analyzed the baby personal care market and weighed diapers as
claiming 65% of the $6.8 billion (and rising) market. Unfortunately, there have only been two options
for diapers in the past—reusable cloth or disposable. Neither has a desirable effect on the environment,
as they litter landfills and are made from harmful materials. However, if Target offered an alternative—
one that eliminated health risks to children and could be beneficial to the environment—all of the Eco-
Shoppers would be satisfied and there would be no need to create a new market. Similarly, new
mothers would not have previous diaper purchasing habits, and habits are easier to pick up than
change. Target can give mothers a chance to make a difference in their children’s future.
Importance of the Next Generation
Opening sustainable and eco-friendly markets invite many new additions to the green industry. Given
the demand for green products by millions of shoppers and the recent success of companies introducing
green products, Target should expand its green product line to establish itself as a leader in the
movement. It should focus on the next generation, since research has concluded that mothers are the
most dedicated shoppers in the eco-friendly market. Once the dangers of baby care products become
public, the demand for all-natural and organic products will increase. Target’s solution to the diaper
problem will be a beneficial investment, since diapers are the dominate product in this market.
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13. Problems with Current Diapers
After realizing the benefits of targeting the next generation, baby products were examined to discover if
and where there is a need in the market. It is clear that there is a need for new products in the diaper
industry due to the limited amount of choices and the excessive amount of harm done to the environment
and babies.
Disposable Diapers and the Environment
According to the gDiapers website, disposable diapers hold 90-95% of the current diaper market for
babies and toddlers. A range of 18 to 23 billion diapers are bought annually by this consumer group,
which consists mainly of mothers. Over the years, disposable diapers have become a problem for the
environment and for sustainability in general because they take a very long time to decompose. They
are the third greatest consumer waste in America’s waste system. Disposables can sit in a landfill for up
to 500 years. Figure 4 shows a comparison of different garbage items and the time each takes to
decompose. Note that disposable diapers take the longest of these examples. To put it into perspective,
the diapers of today would not fully decompose in a landfill for 20 generations.
Decomposition Rates of Various Garbage Items
500
500
Time, in Years
400
300
200
100
100 0.2 0.5 5 12 20
0
Paper Orange Milk Cigarette Plastic Tin Can Disposable
Peel Carton Butt Bag Diaper
Garbage Items
Figure 4 – Decomposition Rates of Various Garbage Items
Information taken from “Evans Library Displays present Recycling Reality” October 1, 2006 - January 15, 2007
Diapers have two other significant environmental impacts. They account for an estimated 2.8 billion
pounds of human waste are thrown into landfills every year. In addition to the contamination of the
landfills and water, diapers also use numerous available resources. For instance, it takes 82,000 tons of
plastic and 250,000 trees each year to produce disposable diapers (“The Diaper Decision”). Diapers also
consume large amounts of natural resources to produce. As reported in The Diaper Pin, a website
dedicated to informing consumers about the environmental hazards in current diapers, it takes one cup
of crude oil per disposable diaper to make the plastic. Also, 200-400 kilograms of cotton are necessary
to supply one baby with disposable diapers for a year. This is a large misuse of natural resources.
Although the effects on the environment alone could be enough to describe the harms of diapers, there
are many other issues in regards to health.
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14. Disposable Diapers and Health Issues
In addition to the numerous consequences of disposable diapers on the environment, a link exists
between babies and multiple health problems. For instance, as stated in The New Parents Guide,
“according to the Journal of Pediatrics, 54% of one-month old babies using disposable diapers had
rashes, 16% having severe rashes.” The high correlation between disposable diapers and rashes is a
result of the super absorbency in a disposable diaper causing less frequent changes. To further examine
this correlation, in 1955, 100% of babies wore cotton diapers, and only 7.1% of babies suffered from
diaper rash. On the other hand, in 1991, 90% of babies wore disposable diapers, and the percentage of
babies that experienced diaper rash increased to 78% (“Your Baby’s Bottom Line”).
Babies Suffering from Diaper Rash with Cotton and Disposable Diapers
100
90
80
70 Market
Percent
60
Share
50
40 Diaper
30 Rash
20
10
0
1955, cotton diapers 1991, disposable diapers
Years and Diaper Types
Figure 5 – Babies Suffering from Diaper Rash with Cotton and Disposable Diapers
Information taken from Your Baby's Bottom Line "Wreaking havoc."
Additionally, plastic diapers may be the cause of the large increase in infertility rates over the past 30
years. Due to the plastic in the disposable diapers, babies’ temperatures remain alarmingly high
throughout the diapering period. Also, disposable diapers contain various chemicals which can cause
severe consequences to a baby’s health. One of these dangerous chemicals is Dioxin, which is the
chemical by-product of the paper bleaching process. Research confirms that Dioxin causes skin and liver
diseases, lowers the immune system, increases the likelihood of miscarriage, and other health defects.
Although exposure to Dioxin can cause many of these problems, it is most known for its strong link to
cancer. In fact, the Environmental Protection Agency has deemed Dioxin to be one of the most toxic
cancer-linked chemicals (“Dioxin”).
Similarly, Sodium Polyacrylate is also used in the production of disposable diapers in order to make the
diaper extremely absorbent. As stated in The Diaper Pin, some of the numerous side effects that can
result from exposure to this chemical are fever, vomiting, bleeding from tissues, and severe skin
irritations. Additionally, Sodium Polyacrylate has been banned from being used in the production of
tampons due to its high connection to Toxic Shock Syndrome. While mothers are protected from this
chemical, their children are still being exposed to its effects. Dioxin and Sodium Polyacrylate are just two
of the dozens of chemicals used in the making of plastic diapers.
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15. Cloth Diapers and the Environment
Even though the negative effects that cloth diapers have on the environment are very different from
those of disposable diapers, they are still a problem that should be addressed. Each baby who wears
cloth diapers will use about 30 pounds of cotton during the diapering period (gDiapers). Harvesting this
material can have harmful effects, as this process is responsible for 25% of the herbicides used around
the world and 25% of the pesticides in the United States alone.
Once produced, cloth diapers need multiple washes on a daily basis. In fact, each baby wearing cloth
diapers during the diapering period will require 10,000-20,000 gallons of water, depending on the
washer (gDiapers). In an attempt to dispute this fact, many argue that utilizing laundry services will
decrease the amount of water consumed. However, laundry services require extra energy and gas due
to the need for transportation. Also, according to an online survey conducted by The Green Guide
Institution, it was found that over 70% of cloth diaper owners used their own washers and dryers. In
addition to the amount of water used, cleaning cloth diapers involves time, detergent, and the energy.
Inconvenience of Cloth Diapers
Between energy, raw materials, and water, cloth diapers produce 60 times less waste than disposable
diapers (“A Tale of Two Diapers”). Despite this fact, consumers still feel that the hassle and
inconvenience of maintaining clean cloths outweigh the increase in environmental benefits. The average
child will need 6,000-8,000 diaper changes throughout this approximate two-and-a-half year diapering
period, translating to thousands of washes for cloth diapers. In other words, using cloth diapers entails
washing seven diapers a day on average. Cloth diapers are also impractical outside one’s own home.
For example, many day care centers only allow children to come with disposable diapers. Because of
this rule, the parents of babies who use cloth diapers would need to purchase both types of diapers if
they wish to use day care. Cloth diapers would also be difficult to clean while traveling, and would result
in more frequent leakages since they are not as absorbent as disposable diapers.
Current Eco-friendly and Biodegradable Diapers
The environmental and health issues resulting from disposable diapers and the inconvenience of cloth
diapers have promoted research for new products. Many companies have tried to create a new type of
disposable diapers. Some of the features of these diapers include latex-free and non-chlorine-bleached
wood pulp. Although these features do resolve some health issues created by disposable diapers, there
has yet to be a substantial difference in environmental sustainability (gDiapers). Biodegradable diapers
are another alternative that attempt to meet the desires of eco-friendly consumers. However, while
these diapers are technically biodegradable, they require sun and air in order to decompose, and
nothing below the surface of landfills receives these resources. Thus, in practice there is no considerable
environmental difference between these biodegradable diapers and traditional disposable diapers.
Insufficiency of Current Products
With a growing concern in the market for more sustainable products, many companies have attempted,
but failed, to produce efficient diaper products that fulfill the desires of consumers. Therefore, Target
has the opportunity to thrive in this market by implementing a new brand of eco-friendly diapers that do
not share the same risks and hazards as current products. With the right product, Target can excel in a
market that sells 18-23 billion diapers annually.
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16. Introducing a New Product: gDiapers®
A new option for diapers has recently become available. Never before has there been a third option; it has
been 40 years of either disposable diapers or cloth diapers. Not only do gDiapers offer benefits to the
environment, they will heighten Target’s reputation as a leading sustainable company.
Introducing gDiapers
While the gDiapers company was first introduced in Australia in 1991,
Jason and Kimberly Graham-Nye brought the company to America in 2004
and established their headquarters in Portland, Oregon. A relatively new
company in America, gDiapers has been environmentally conscious from
its start. The Graham-Nye’s choice to operate out of Portland stemmed
from its reputation as the most sustainable city in America (SustainLane).
With children of their own, they wanted to benefit their kids as well as
others all over the country. Target now has the opportunity to present this
sustainable and socio-economical company and product to an even wider
audience.
Picture from gDiapers.com
Combining the best of both worlds, this innovative company has created an alternative to both cloth
diapers and disposable diapers. This substitute is necessary because of all of the water used in washing
the cloth diapers and all of the waste created by the disposable diapers. This new product introduces
the use of a flushable liner within “little g” pants. According to the gDiapers website, the Flushables are
made of all natural fiber that is completely biodegradable and can simply be flushed down the toilet
once soiled. These Flushables are safe for septic systems as well. The liners themselves can be easily
rinsed out if necessary, and the “little g” pants are made of a cotton. These gDiapers do not need to be
disposed of in landfills, and liquid soiled diapers can actually help the earth through composting in home
gardens.
gDiapers’ Sustainability Efforts Thus Far
The sustainability of gDiapers is apparent in its product offerings. The two parts of the gDiapers, the
Flushable and the “little g” pants, are both made from natural resources. Specifically, the gDiapers
Flushable is made from “cellulose fibers from sustainably harvested trees.” Another benefit of this
resource is the fact that cellulose is “the building block of all life and is the most abundant form of living
biomass.” The outer layer of the Flushable is made from cellulose rayon. Using these cellulose resources
is not only advantageous because of its abundance, but it reduces use of plastics that can be found in
disposable diapers. A gDiapers Flushable contains no perfume, chlorine, and latex, which is another
advantage over disposable diapers (gDiapers).
The elements that comprise gDiapers and gDiapers’ business operations have earned this company a
Gold Cradle-to-Cradle certification. According to the Cradle-to-Cradle website, this award is certified by
the founders of MBDC, a “product and process design firm dedicated to revolutionizing the design of
products and services worldwide.” This certification “provides a company with a means to tangibly,
credibly measure achievement in environmentally-intelligent design and helps customers purchase and
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17. specify products that are pursuing a broader definition of quality.” In fact, it is the very first consumer
packaged product to receive this award. The gDiapers website states that every Flushable can be
completely “re-absorbed into the eco-system in a neutral or beneficial way.” With these results, Target’s
environmentally conscious guests will take interest in this product.
gDiapers’ Partnerships to Benefit the Next Generation
Already, gDiapers has several partnerships that demonstrate its strong desire to support a healthy
environment for generations to come. As an example, it is partnered with the non-profit organization
Healthy Child Healthy World that works to protect children from a harmful environment. According to
its website, Healthy Child Healthy World, which was established in 1991, has become “the nation's
leading organization of its kind.” Healthy Child Healthy World actively involves itself in improving the
environment in order to protect By partnering with gDiapers, Target would also benefit from an
association with Healthy Child Healthy World. The greater the connection of dedication to helping the
environment, the more dedicated Target will appear to its guests, thus deepening their trust in this
company. This association can also further Target’s reputation as a sustainable company.
Benefits of gDiapers at Target
The cost of gDiapers is comparable to traditional disposable diapers. This gives Target’s guests more
incentive to purchase this new product in addition to the added benefit of helping the environment. As
shown in the graph below, the price per diaper for its guests is only five cents more for the small size in
comparison to Pampers (sizes 2-3), and is actually six cents cheaper for the larger size in comparison to
Huggies (size 6).
Cost Comparison of gDiapers and Competing Disposable Diapers
$0.50
$0.40
Price per Diaper
gDiapers
$0.30
$0.20
Traditional
$0.10 Diapers
$0.00
Small Diapers Medium / Large Diapers
Diaper Sizes
Figure 6 : Cost Comparison of gDiapers and Competing Disposable Diapers
Information taken from gDiapers.com and Target.com
As stated earlier, disposable diaper sales compose 65% of the $6.1 billion baby care supplies market
(Packaged Facts). Therefore, expanding Target’s merchandise offerings through gDiapers will increase its
shares and profits in this market. Furthermore, this partnership requires few additional resources on
Target’s part. With its competitive prices, gDiapers will complement other diaper brands, and the unique
and stylish packaging lends to Target’s styling and design themes.
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18. Bringing gDiapers to Target
Introducing gDiapers to the Target merchandise catalog communicates Target’s movement towards
promoting sustainable efforts to its guests. Target has the opportunity to be the first large-scale retailer
to offer this environmentally friendly product. While gDiapers is a relatively small company, its impact
on the environment would be heightened by Target’s guests and their loyalty to its stores.
Currently, gDiapers are only available in select natural retail stores across America and Canada and
stands to benefit tremendously from the partnership. Target offers gDiapers sales opportunities
exceeding those of its current limited online distributors and specialty shops. By partnering with
gDiapers, not only would Target increase the popularity of this product, but its reputation as a
sustainable company would gain even more credibility. In other words, both companies stand to profit
while also increasing awareness of sustainable and environmentally friendly living among customers.
gDiapers Review
The gDiapers company represents an innovative approach towards developing sustainability in the baby
care supplies market. Its unique product design presents mothers with an affordable opportunity to help
improve the Earth for their children’s future. As a retailer aiming to communicate its dedication to
sustainability to current and future guests, the partnership with gDiapers strengthens Target’s foothold
in the $6 billion market.
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19. Implementing the Partnership
Choosing locations based on Target’s local success and the sustainability reputation of the community
would serve as a proving ground for the success of this new product. This limited launch would benefit
Target and gDiapers since it would maximize speed and ease while minimizing costs to both parties.
A Shared Set of Values
Target and gDiapers share similar marketing qualities and designs, allowing gDiapers to be easily
incorporated into Target stores. For instance, Target's atmosphere and products are filled with high
quality and bright colors that give guests an enjoyable and positive experience. Target’s website states,
“More than just creating an easy-to-shop environment, our focus on design means creating products
and displays that make our guests feel welcome. Over the years, it has also become an important way
Target stores attract and keep loyal shoppers.” Similarly, the gDiapers company practices the same
values when creating their products. The “little g” pants come in numerous vibrant colors and designs,
as they focus on keeping their high quality products stylish. The slogan for their gDiaper is “100%
fashionable, 100% functional, natural diapers” (gDiapers). As demonstrated through their websites,
both companies emphasize fashionable and quality products at an affordable price.
Like their parallel designs, both companies also have comparable values. Target and gDiapers place a
strong emphasis on sustainability. Minneapolis, Minnesota, the location of Target’s headquarters, is the
seventh most sustainable city in America (SustainLane). Centering operations in a city that understands
the importance of sustainability further demonstrates Target’s concern with protecting the environment
for the future. Likewise, gDiapers’ headquarters is located in Portland, Oregon, which is the nation’s
most sustainable city (SustainLane).
In addition to each company prioritizing sustainability, they also each focus highly on customer service
and satisfaction, affecting every aspect in which they do business. Numerous similarities exist within the
mission statements of Target and gDiapers. “Our mission is to make Target the preferred shopping
destination for our guests by delivering outstanding value, continuous innovation and an exceptional
guest experience and consistently fulfilling our Expect More. Pay Less.® brand promise”(Target).
Similarly gDiapers’ mission statement states, “Fair Dinkum is an Australian expression that means being
genuine and real with everyone you encounter. Well put. That is our philosophy toward our business,
our people and the planet” (gDiapers). Both mission statements demonstrate each company’s emphasis
on customer satisfaction through customer service and the quality of products. Target and gDiapers’
shared goals will enable both companies’ success through selling the gDiaper product.
Supplying the Product at Test Sites
To determine if gDiapers will be a popular item among Target guests, it will be wise to begin selling them
in specific test sites across the country. Sustainable cities are most desirable to start this testing process
as the members of these communities are already in the mindset of shopping “green.” Target should
begin selling gDiapers at stores in Portland, Oregon; Chicago, Illinois; Minneapolis, Minnesota; Boston,
Massachusetts and other highly sustainable cities in which Target is a proven success. These are
advantageous test sites because they span the country, introducing guests in every region to the
product. The introduction of gDiapers to select areas will show how responsive guests are to the
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20. product and moreover, alleviates manufacturing pressure on gDiapers. This limited release of gDiapers
among specific stores means that the gDiapers company will not have to immediately expand their
manufacturing facilities to supply every Target store with gDiapers products. As gDiapers’ sales expand
with their presence at Target, the gDiapers company can determine the best way to increase their
production and meet the increased demand for gDiapers.
Costs Involved
During the testing period, the amount of shelf space that other diaper brands currently receive will be
reduced. However, all current diapers will still be offered, and employees should be instructed to
frequently check the stock of these products. As a result, customers will still be able to purchase the old
brand of diapers, while also having the option of buying the gDiapers. The demand for eco-friendly
products has been clearly established, and outweighs Target’s initial risk of receiving inadequate returns
from gDiaper sales. Based on gDiapers’ performance at various Target locations, further expansion of
gDiapers distribution locations can be determined. In addition, partnering with an existing company will
cost significantly less than the complicated process of developing a Target brand of environmentally
beneficial diapers. Despite initial costs, Target will be able to better establish itself as an environmental
leader and provide its guests a wider variety of quality, affordable through its merchandise offerings.
Importance of Implementation
With Target and gDiapers sharing similar marketing methods, the two companies would prosper from
this partnership. Target’s interest in improving sustainability, coupled with gDiapers’ products, will
provide a way for guests to see how they can make a difference in the environment. By introducing
gDiapers gradually to specific Target stores, Target can identify the demand for this new product. It
would not be necessary for Target to create a new section for these gDiapers; it would only need to
reduce the quantity of traditional disposable diapers on the shelves.
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21. Marketing the Promotion
To succeed, Target must show its guests the value in gDiapers through promotional signs, advertising,
and team member training. Involving guests in the environmental process will increase how much they
care, and foster their continued involvement in Target’s environmental efforts.
Appealing to the “Green” Consumer
In current economic times, retailers are forced to deal with a difficult dilemma: overcoming the growing
tension between sustainability and cost. For Target to succeed in this era full of new wants, needs, and
economic constraints, it must be able of offer its guests sustainable products that offer an equal or
greater amount of value than current offerings. However, “price” and “value” are two different
concepts. To quote billionaire Warren Buffett: "Price is what you pay. Value is what you get" (Marketing
Week 26). Offering guests gDiapers will provide a solution that benefits the environment by reducing
waste without substantially increasing retail prices. While gDiapers require an initial investment for
consumers, this cost is justified by practicality, long-term savings, and environmental benefits – in other
words, value.
Promotional Signs In-Store
While introducing this new product, sales of these eco-friendly diapers would increase from having signs
placed in the aisles that highlight their environmental and financial advantages. The current “Temporary
Price Cut” signs could be replaced with the signs advertising the eco-friendliness and sale prices of the
new products. In contrast to the current signs, these displays
inform the customer about a sale, while simultaneously offering
two incentives to buy – saving money and benefitting the
environment. These signs can serve to alleviate some of the fear
that most customers have of paying a premium for these
environmentally-friendly items. Especially with these items being
new to Target stores, an initial incentive to boost sales numbers
would be beneficial to this product line.
Figure 7a – In-store Advertisement 1
Figure 7b – In-store Advertisement 2
Also, signs could be hung from the ceilings of the store to simply
promote the items – sale or not. Because Target will be carrying a new
line of diapers, increased exposure through in-store advertising, in
conjunction with sale promotions, would raise awareness about the
benefits and availability of these new items. These posters would be a
mix of emotional and logical appeal to the general public. These
products are not overly expensive, do not require constant washing,
and can be easily disposed of by simply flushing them down the toilet. The more familiar guests are with
these practical benefits and positive environmental effects, the more likely they will be to purchase the
items.
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22. Media and Print Advertising
Target’s new promotional campaign would serve two distinct purposes: to promote the specific diapers
available for purchase, and also to highlight Target’s general “green” effort. If the launch of this new
product can help Target build a reputation of being an eco-friendly company, then future “green”
products would likely share similar success. This campaign is not just about introducing a new product; it
introduces a newer mindset with consumers and starts a trend that traces all the way back to a person’s
infancy. It is about helping the environment and community, as well as increasing “green” awareness
and offering consumers a new choice to give back to the environment and preserve the planet for future
generations.
In addition to in-store sales, Target’s website could help in advertising and distributing the product. The
special advertisements on the homepage would have minimal costs to Target and create another outlet
to promote this new product, as well as inform consumers as to the benefits of these gDiapers. Studies
have shown that 92.5% of adults said they research products online before buying them in a store. 90%
of those surveyed say they have a better overall shopping experience when they research products
online before shopping in-store (BazaarVoice). The Target website could be a great first impression for
consumers who are aware of, but not very knowledgeable in the eco-friendly diapers category.
Credit Cards
Currently, 5% of purchases made with the Target REDcard supports the community. But what if guests
had a more active involvement in the allocation of their money? As stated above, enabling Target’s
guests to take an active role in protecting the environment will increase their environmental awareness
and provide more incentive to shop at Target stores. On the
computerized screen where your guests insert their credit cards, a
simple choice could be given: to benefit local environmental efforts
or to go to the general charitable funds already in place. The
employees should verbalize this choice to Target’s guests using the
REDcard, and even use it as an opportunity to promote applications.
A possible design for the card is shown to the left, and the card-
reading machine could display the following:
Figure 8 – New Target Credit Card
Figure 9a – Credit Card Screen 1 Figure 9b – Credit Card Screen 2
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23. Team Member Training
To provide Target guests the easiest shopping experience possible, Target’s team members should be
knowledgeable and helpful with the new procedures. In everything from suggesting the new products to
guests as an alternative to the traditional diapers, to promoting a new credit card system, Target’s team
members can help encourage future green efforts. By identifying mothers as the prime candidates for
the new product and credit card system, Target can start the new product and system in an
environment where there is a high likelihood of success.
Continued Implementation
After identifying today’s new “green consumer,” it is important that Target gives guests as much
information and incentive as possible to switch to and continue to support its new product. The primary
consumers of gDiapers are new parents who care about their children as well as the environment.
However, they also do not have much room in their budget to pay more than the price of traditional
disposable diapers. By appealing to their emotions by protecting the environment and appealing to their
logic by offering a convenient and affordable product, Target can expect these customers to welcome
this alternative. Through employee suggestions, word-of-mouth, and advertisements both in-store and
online, Target can effectively promote this product to rapidly increase awareness of gDiapers. Then,
through continued support via Target’s new credit card system, guests will feel the direct contributions
they are making by protecting the earth for future generations.
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24. Conclusion
Currently, the environment is a primary concern among Americans, and there is no better time to
introduce a product that will address these growing concerns. Target has recognized the increasing
importance and necessity of sustainable action and has the opportunity to become a leader in this
prosperous market. The best way to accomplish this goal is by drawing on a significant proportion of the
eco-conscious population—mothers. Changing habits is more challenging than creating new ones, thus
Target can benefit from marketing towards new mothers, as they will be developing new purchasing
habits. A mother’s primary concern is the improvement of her child’s health and environment. Diapers
dominate the baby product market, as their demand is inelastic because every child goes through the
diapering period. There is a clear need for change in the current market due to problems with the
current options for diapers, and offering gDiapers in Target stores will provide guests with a healthier
alternative. By creating a partnership with gDiapers, Target will be able to accomplish this goal of
becoming a leader in offering sustainable baby products.
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