Shades of Green Marketing Goes Beyond Greenwashing
1.
2. Shades of Green Marketing
Going Green without Going Overboard | October 27, 2009
Prepared and submitted by:
BURNS MARKETING COMMUNICATIONS
Copyright ® 2009. All rights reserved.
3. AGENDA Greening an office
Green “P”s
_ Paper
_ Printing
_ Promotional items
Green marketing
Greenwashing
Green fatigue?
Green conclusion
Green questions
4. Running a green office is both good for the
GREENING environment and the bottom line, as conserving
AN OFFICE resources and cutting waste saves money.
Little things you can do at your company:
_ Recycle paper, commingled containers, and ink
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
• Look for a high percentage of post-consumer content and
minimum of processed chlorine bleaching
_ Switch to green cleaning products
6. GREEN Choose paper that is:
_ Recycled, preferably 80- to 100-percent post-
PAPER consumer waste (PCW)
_ Chlorine free
• Elemental chlorine free (ECF)
• Totally chlorine free (TCF)
• Processed chlorine free (PCF) for recycled paper
_ Uncoated
_ Forest Stewardship Council (FSC) certified
• Contributes to conservation, responsible management,
and community level benefits for people near the forests
that provide the paper
_ Made by renewable energy sources
_ Treeless
• For example: hemp, kenaf, sugar cane, cotton, Crane’s
‘Denim Blues’ and ‘Old Money,’ TerraSkin (made of
stones), etc.
7. GREEN What’s the problem with printing?
_ The pulp and paper industry is the third largest
PRINTING industrial polluter to air, water, and land in the United
States and Canada, and releases over 100 million kg
of toxic pollution each year.
_ Petroleum-based inks damage the environment and
our health with volatile organic compounds (VOCs).
_ 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.
8. GREEN How can you print green?
_ Use vegetable-based inks or soy inks instead of
PRINTING
(continued)
petroleum-based inks
• These alternatives are low in VOCs, made from a
renewable resource, competitively priced, and make paper
easier to recycle.
_ Look for a printer that uses renewable energy sources
(e.g., wind and solar power)
_ Try waterless printing, which eliminates the
dampening systems used in conventional printing
_ Go digital, which avoids the film and chemicals in
traditional printing
_ Avoid bindings, adhesives, or foil stamps that render
printed items unrecyclable
_ Reduce ink usage by going with one- or two-color
designs
_ Save paper by using standard press size sheets
9. GREEN Promotional products companies are capitalizing on
the green movement.
PROMO ITEMS Examples of available items:
_ 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.,
flashlights, clocks, calculators, disposable cameras,
etc.)
_ Eco-friendly golf balls
_ Plants and seeds in biodegradable packaging
10. GREEN Marketing of products, services, or companies that
are presumed to be environmentally friendly,
MARKETING sustainable, or socially responsible.
_ Ingredients/materials
_ Packaging/design
_ Production/manufacturing process
_ Alternative energy
_ Organic
_ Local
_ Fair trade
_ Philanthropic
_ Corporate social responsibility
11. GREEN The five simple rules of green marketing:
(Jacquelyn Ottman, MarketingProfs, November 20, 2007)
MARKETING
(continued)
_ Know your customer
• First, make sure that the consumer is aware of and
concerned about the issues that your product addresses.
_ Empower customers
• Make your customers feel that by using your product, they
can make a difference (either alone or together with all
the other users). Empowerment is the main reason
consumers buy green products.
_ Be transparent
• Consumers must believe the legitimacy of your product
and the specific claims you’re making. There’s a lot of
skepticism out there now because of “greenwashing.”
_ Reassure the buyer
• Consumers must believe your product does what it is
supposed to do – they won’t forgo product quality to save
the environment.
_ Consider your pricing
• Make sure consumers can afford a premium price and feel
it’s worth it.
12. GREEN Generation Y’s favorite green brands (Outlaw Consulting survey):
_ Companies that are going beyond the niche segment
MARKETING
(continued)
of hard-core Greenies to win-over Gen Y (ages 21-29)
influencers.
_ These brands are not necessarily the leaders in the
issues of sustainability, but they are trendsetters in
image categories.
_ 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.,
food, clothing, health/beauty).
13. CASE Sprint “Reclaim”s some green cred.
_ The green-themed smart phone is loaded with green
STUDIES content, eco-conscious accessories, and sustainable
packaging.
• Content from Planet Green – provides basic green info
• Preloaded eco-sonic ringtones including chirps and
ribbits
• More environmentally-conscious instruction book
• Postage-paid recycling bag included for your old phone
_ 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.
_ Sprint is committed to recycling 90-percent of the
phone they make by 2017.
_ Green or greenwash?
• “They have taken real steps towards cleaning up an
industry that contributes an incredible amount of material
into the global e-waste stream.” – Timothy B. Hurst
14. CASE Burt’s Bees attacks the ingredient, not the brand.
_ Consumers can easily get confused by what
STUDIES constitutes “natural” products, and are unwittingly
buying products with ingredients they want to avoid.
_ To address this confusion, Burt’s Bees advertising
depicts the difference between the benefits of natural
ingredients in their products versus the surprising,
icky ingredients in non-natural products.
_ 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.”
_ Beeswax, on the other hand, is a “naturally
replenishing moisturizer made by bees.”
15. CASE Tide Coldwater – a benefit shift.
_ While many green products focus on the environmental
STUDIES benefits, Tide Coldwater promotes consumer savings.
16. CASE Levi Strauss practices Goodwill.
_ The beginning and ending of jeans’ lifecycle are the
STUDIES most carbon/energy intensive parts of the chain.
_ Levis Strauss is working to increase its use of organic
cotton, but what are they doing for the end of the
lifecycle?
_ A partnership with Goodwill encourages Levi owners to
donate their jeans rather than toss ‘em.
_ 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.
17. CASE Agency raises clean water awareness.
_ A Belgian agency’s pro-bono creative grabbed people’s
STUDIES attention on the issue of clean water.
• Every 15 seconds a child dies from a disease caused by
lack of clean drinking water.
_ A boy would run into live broadcasts and grab a glass
of water, drink it, then run off again.
_ Only producers, not the on-air talent, were informed of
the stunt to keep the reactions as real as possible.
_ The message was that it’s not so normal to have a
glass of water – it’s not in reach for millions of people.
_ The live interruptions were gathered and broadcast as
a commercial that explained who was behind the
events and why.
_ The effort raised 3.3 million euros (1 million from the
Belgian government).
18. CASE Denver Water uses only what it needs.
_ Denver Water’s campaign (by Sukle) to help conserve
STUDIES during the summer months in Colorado.
19. GREEN Greenwashing describes the act of making an
unsubstantiated or misleading claim about the
WASHING 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:
_ Greenwashing Index (EnviroMedia)
_ Stop Greenwash (Greenpeace)
A 2008 survey shows that a rising number of
Americans (currently 68-percent) think companies
exaggerate their environmental initiatives.
20. GREEN The six sins of greenwashing (TerraChoice):
_ Sin of the hidden trade-off
WASHING
(continued)
• Suggestion that a product is green based on an
unreasonably narrow set of attributes without attention to
other important environmental issues.
_ Sin of no proof
• An environmental claim that cannot be substantiated by
easily accessible information or third-party certification.
_ Sin of vagueness
• Any claim that is so poorly defined or broad that its real
meaning is likely to be misunderstood by the consumer.
_ Sin of irrelevance
• A claim that may be truthful, but is unimportant and
unhelpful for consumers seeking environmentally
preferable products.
_ Sin of lesser of two evils
• Green claims that may be true within the product
category, but risk distracting the consumer from the
greater environmental impacts of the category as a whole.
_ Sin of fibbing
• Environmental claims that are simply false.
21. CASE General Motors promises Gas-Friendly to Gas-Free.
_ GM’s campaign highlights ways Chevrolet is
STUDIES “greening” its fleet:
• Increasing fuel efficiency
• Producing E85 ethanol vehicles
• Developing hybrids, plug-in hybrids, and fuel cells
_ Web site, commercials, and print ads feature green-
friendly images that suggest GM’s support for the
environment.
_ GREENWASH
• As this campaign was launched, GM was lobbying
Congress to stop the increase of fuel economy standards
and is still a leading producer of gas-guzzling vehicles.
22. CASE Bottled water gets in eco-shape?
_ Fiji water tells consumers that “every drop is green”
STUDIES and fijigreen.com promotes the company’s promise
and progress toward going carbon negative, saving
the rainforest, reducing packaging, and recycling.
_ Nestle brand bottled waters have a new “eco-shape”
bottle featuring 30-percent less packaging.
• “The lightest half-liter bottle ever produced.”
_ GREENWASH
• Bottled water is still extremely environmentally unfriendly
when you factor in the energy used and pollution emitted
with transportation (especially from Fiji), distribution, and
plastic packaging.
23. CASE Sigg hits plastic status.
_ Sigg metal water bottles have been popular with those
STUDIES looking to avoid plastic water bottle waste and the
dreaded BPA compound.
_ GREENWASH
• The company’s reputation tanked after consumers
discovered the aluminum water bottles were found to
have BPA.
• 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.
• “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
24. CASE Shell oil emits flowers and admits foul.
_ Shell’s ad showing oil refineries spewing flowers
STUDIES instead of smoke claims that it uses its own “waste
CO2 to grow flowers and waste sulfur to make
concrete.”
_ So many complaints were filed that Royal Dutch Shell
was ordered by the Dutch Advertising Code Authority to
withdraw the ad.
• However, the ad continued to run in other European
countries, including Britain.
_ GREENWASH
• The ad implies all of Shell’s waste CO2 is recycled, while
in reality, only tiny percentages of Shell’s waste products
are recycled for flowers and concrete, etc.
• 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 Shell’s
direct emissions, estimated by Shell to be 100 million
tonnes in 2005.
25. GREEN Consumers are in a green fog.
_ Eco-friendly messages are so pervasive that it can be
FATIGUE? confusing and frustrating to understand which are
meaningful, which are just hype, and how to make wise
decisions on purchases and personal actions.
Skepticism is strong.
_ 64-percent of consumers view sustainability campaigns
as little more than a “marketing tool” – opportunism on
the part of big business. (Source)
The green market is not yet mature – and consumers
still lack an understanding of “going green.”
_ About one in three consumers say they don’t know how
to tell if green product claims are true. (Source)
_ Half of consumers say a company’s environmental
record is important in their purchasing decisions. (Source)
• But only 21-percent said this had actually driven them to
choose one product over another.
• And a mere 7-percent could name the product they
purchased.
26. GREEN But despite confusion, skepticism, and the recession,
green products are growing.
FATIGUE?
(continued)
_ In 2009 (as of April), companies have launched 458
products that claim to be “sustainable,”
“environmentally friendly,” or “eco-friendly.” (Source)
• 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.
_ Four out of five people say they’re still buying green
products and services. (Source)
• Primary influencers in deciding what to buy:
. Product’s reputation: 21-percent
. Word of mouth: 19-percent
. Brand loyalty: 15-percent
. Advertising: only 9-percent
_ Green shoppers come with desirable characteristics
including brand loyalty, lower price sensitivity, and more
frequent shopping. (Source)
27. GREEN Even though many consumers are experiencing eco-
anxiety and shutting down to green marketing, they
CONCLUSION 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:
_ Be honest and transparent with your efforts and true
company values.
_ Create remarkable, lovable products that are both hip
and green.
_ Invite customers to participate in the brand and be your
ambassadors.
_ Partner with established non-profits, etc.
_ Move beyond the green fad into sustainability –
continuous improvement.
• Address not only the environment, but your affect on the
greater society and your local community.