Green marketing


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Sun., Oct. 31, 2010 - At the Big “R” Show
Green Marketing - Make it Your Business
This panel discussion provided insight on how remanufacturers and distributors can use “green” marketing as a means to maximize company profits by establishing corporate goodwill and promote a company’s green product and services.

Tom Marx discussed how to incorporate a “Green” marketing strategy. Scott Stolberg of AAEQ provided perspectives on how he transformed AAEQ into a leading green company through strategic green marketing initiatives. And Keith Patridge of McAllen Economic Development Corporation discussed their “Green Campaign” successes which promotes remanufacturing and product reuse on the border of Texas and Mexico.

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  • Today we hope to show you how to promote your company’s green assets as a way to improve your bottom line. We have discovered that Green marketing is more than good PR. It is also good for business. It makes good financial sense to invest in efforts to promote your business as green. Our overall goal is to give you some some practical advice on how to implement green marketing into your overall marketing strategy.  
  • Remanufacturing is Green. It has always been green. It is the ultimate form of recycling.*Parts are disassembled, cleaned, repaired or replaced, and then reassembled to working condition. Remanufacturing recaptures the value-added cost of labor, energy and raw materials required to create the same product for consumption. From an environmental standpoint – the cost in resources associated in developing a new product as compared to taking the exact same product and remanufacturing it for consumer consumption is significantly more in terms of the value added to the product calculated by labor, energy and raw materials. *Attributed to : Remanufacturing: The Ultimate Form of Recycling, Rolf Steinhilper, Ph.D., chair for manufacturing and remanufacturing technology at the University of Bayreuth in Germany
  • If you are not using resources to make new products, then these resources are available for other use and other generations.Some of these are renewable and some are finiteAdditional notes: Natural Renewable Resourcesare those that can be replenished by natural processes at a rate comparable or faster than its rate of consumption by humans or other users, such as: timber and fresh waterNatural non-renewable resources are those that cannot be re-made, re-grown, or regenerated on a scale comparative to it’s consumption. In other words these are resources that are consumed faster than they can be made by nature: Examples are oil, natural gas, iron, coal, copper, gold, silver, zinc, aluminum
  • Developing a product new from virgin materials creates more greenhouse gas emissions and creates more of a carbon footprint than taking an existing product and remanufacturing it for consumer consumption. Remanufacturing reduces energy use, reduces landfill waste and preserves renewable and non-renewable natural resources.
  • This claim has been well documented and is based on both the conservation of renewable and non-renewable resources, fuel, manpower and more. Annual energy savings from remanufacturing in the U.S. alone has been estimated to save up to 16 million barrels of crude oil - which equals the consumption of 75,000 car owners. Sources:Bullet One – (Lund, Robert T. 1996, The Remanufacturing Industry, Hidden Giant, Boston, MA)Bullet Two - ( Remanufacturing Is Profitable and Green by Don Hegland,February 24, 2010)
  • 14 million tons of raw material is enough material to fill 155,000 railroad cars to form a train 1,100 miles long. Remanufacturing is big business – with approximately $53 billion annual sales. Collectively, our industry employs close to 500,000 people annually. The automotive remanufacture industry alone is estimated to be $25 billion a year. We have a story to tell – remanufacturing is good for the economy and good for the environment.
  • That was the sentiment in 2008. How has the world changed since then?
  • Companies are racing to the top to be green – Dell, IBM, Hewlett Packard – almost every company with a public face wants to be green. The answer is clear – Green is the new Black. Consumers want to support companies that have an interest in sustainability, care about climate change, landfill minimization and preservation of our resources. So, is there a downside to being Green?
  • To market your business as “Green” first you need to make sure that your business, if scrutinized by the public, would be considered Green.To be green requires that you take proactive steps to be green and that provides you the opportunity to promote your company as green.
  • Greenwashing is the dreaded word. Before you make efforts to implement a green marketing strategy – examine your company’s practices from the perspective of a “green” focused consumer.
  • Be an inspiration to your employees, your industry and community. Do an inventory at your company.
  • Look at every operation in your company
  • So what is involved with a green marketing strategy. Look at your existing and potentially new marketing efforts through a green prism. How can these marketing materials be developed to promote your industry – remanufacturing - and your business as green? Promote your green assets so new and existing customers can feel good about doing business with your company!Begin with your website. A simple statement about your company’s core values of being green is a start.
  • Community Outreach Generates good Publicity and Positive Press. Do not count on others involved to promote you. It takes a calculated effort to be green and to promote your business as green. It takes time to determine what is in the community that is a good fit and how you can devote your company’s resources to participate without being wasteful. Someone in your marketing department should head up this effort, and it may require soliciting help from professionals.
  • If you are green or sell green products, then tell the world. Include your green message in ALL marketing!
  • Be an example to your employees, customers, media and the community.
  • Calculate in terms people can understand how your product is helping the environment. Carbon footprint calculators are excellent to add to your site. Build relationships with your customers with your green story.
  • Remember—PR is FREE and the media wants stories…they all have cut back on their staff, so the opportunity is to provide them with information about how environmentally concerned you are about the products you make.
  • Use the digital world to get across your message!
  • Green marketing

    1. 1. 1 Green Marketing Make It Your Business Sunday October 31, 2010 1:00 – 2:00 p.m.
    2. 2. 2 Presenters Tom Marx President & CEO The Marx Group Scott Stolberg President & CEO AAEQ Remanufacturers and Recyclers Keith Patridge President & CEO McAllen Economic Development Corporation
    3. 3. 3 Tom Marx President & CEO
    4. 4. 4 Remanufacturing Was Green Before Green Was Cool! Remanufacturing is one of the three R’s of Product RetirementReuse Recycling Remanufacturing
    5. 5. 5 Just How Green? Remanufacturing conserves, preserves and protects the Earth’s renewable and non-renewable resources: Timber Oil/PetroMetalsWater
    6. 6. 6 • Remanufacturing Significantly Reduces – Green House Gas Emissions (GHG) – Carbon Footprint – Energy Use (BTUs) – Landfill Waste • Remanufacturing Preserves Renewable and Non- Renewable Natural Resources
    7. 7. 7 Did you Know? • Remanufacturing can conserve up to 85% of the material and energy required to produce the same product as new • Remanufacturing is estimated to save 14 million tons of natural raw materials annually • Remanufacturing is estimated to save 400 trillion BTUs per year of energy • Remanufactured automotive product components are 40 % to 60 % the cost of a new component
    8. 8. 8 Did you Know? • 28 million tons of added carbon dioxide is avoided by the saved BTUs • Millions of barrels of oil and comparable forms of energy is saved by keeping automotive parts out of the re-smelting process • The Remanufacturing Industry makes a major impact on the economy: • Estimated $53 billion annual sales total • Estimated 500,000 employed
    9. 9. SO WHAT? WHO CARES? 9
    10. 10. 10 Consumers and the Public Cares • Based on a McKinsey Quarterly Study, March 2008 – 87% of consumers are concerned about the environment and social impacts of the products they buy. – 33% of consumers indicated they were ready to buy green products or have already done so. Source: Sheila Bonini, Greg Hintz, and Lenny Mendonca, “Addressing Consumer Concerns About Climate Change,” McKinsey Quarterly, March 2008.
    11. 11. 11 Newsweek is Keeping Score on Green Companies
    12. 12. 12 Scott Stolberg President & CEO
    14. 14. Avoid Green Washing Don’t be deceptive. Consumers are keen to green washing. They can easily determine if you are misusing Green PR or Green Marketing to create a misleading perception that your company's policies and products as being environmentally friendly. 14
    15. 15. 15 Walk the Talk Would the public consider you green? Are you taking proactive steps to be green? Are you leveraging your efforts?
    16. 16. 16 Why we are Green To be green requires that you take the sustainability of the Earth’s natural resources serious enough to change activity in all aspects of your business to conserve, protect and use existing resources.
    17. 17. 17 We Want to be an Inspiration Company Sustainability Program Recycle Reduce energy consumption Reduce fuel consumption
    18. 18. 18 We Minimize Waste – Use recycled cardboard boxes – Recycle metal and rubber – Use paper instead of plastic or styrofoam for packaging – Recycle toner cartridges – Use biodegradable solvents – Recycle paper, cardboard, bottles and cans – Discourage use of plastic water bottles
    19. 19. 19 Our Marketing Strategy • Educate and promote a green message and our green usage through print and electronic media as well as public appearances • Our Green Message appears throughout AAEQ marketing: o Value Proposition (core values, mission statement, brand pillars) o Website o E Blasts / E Newsletters o Advertising o Brochures o Packaging o On Hold Messages o Statement Stuffers o E-mail Signature
    20. 20. 20 Community Outreach • In the form of: – Speaking Opportunities – Community Participation – Webinars – Observation of Earth Day or Climate Change Day – Sponsorship of Events and Green Activities
    21. 21. 21 Community Outreach
    22. 22. 22 Community Outreach
    23. 23. 23 Community Outreach
    24. 24. 24 Community Outreach
    25. 25. 25 Community Outreach
    26. 26. 26 Direct Mailings
    27. 27. 27 Our Community Outreach Results In…  Positive Press – News releases – Feature articles – Local and Regional Awards – Invitations for more Speaking Engagements  Increased Awareness about AAEQ  Positive perceptions about our business and the industry-at-large
    28. 28. 28
    29. 29. 29 Remanufacturing is Green. Green is the new Black.
    30. 30. McAllen Economic Development Corporation . Keith Patridge President & CEO 30
    31. 31. McAllen Economic Development Corporation . About McAllen EDC • Your single point of contact for relocation, expansion and new business development in McAllen, TX/Reynosa, MX • A non-profit organization charged with creating new jobs and attracting new investment under contract with the City of McAllen • Began in 1988 and has recruited more than 600 companies, which has resulted in more than 100,000 jobs in McAllen/Reynosa. 31
    32. 32. McAllen Economic Development Corporation . McAllen, TX/Reynosa, MX BY THE NUMBERS: McAllen MSA Population: 768,405 Reynosa Population: 1.2 million Average Age: 27 Number of companies in bi-national metro: 400+ Number of international bridges between the cities: 3 Number of industrial parks in both cities: 20 32
    33. 33. McAllen Economic Development Corporation . Remanufacturing in McAllen/Reynosa • Lower costs • Labor availability • 10,000+ workers in the industry • Strategic location for collection & redistribution EXISTING GREEN COMPANIES: Bigston JVC Bissell BBB Panasonic Sharp Jabil Global Services Stanley Black & Decker Union Plastics & Metal Recycling Valley Plastics Technoplas Teleplan Standard Motor Products Celestica Four Seasons Shapiro Metals IFCO Systems Republic Systems 33
    34. 34. McAllen Economic Development Corporation . JVC McAllen Warehouse/Refurbishing center in the McAllen Foreign Trade Zone 34
    35. 35. McAllen Economic Development Corporation . JVC McAllen JVC uses certified recyclers to ensure all materials are properly re-used and disposed of after the product’s life cycle. Car Stereos 35
    36. 36. McAllen Economic Development Corporation . De-Manufacturing Reynosa, MX 36
    37. 37. McAllen Economic Development Corporation . Green = Good Business Green = PROFIT $$$ Green = New Customers/Markets Green = Good Practice Green = Better Environment 37
    38. 38. McAllen Economic Development Corporation . Marketing Green To your company To your customer • Identify problems in your product line early & address issues • COST SAVINGS: By finding an appropriate model, your company will save $$$ • Do it before your competition thinks of it • Green = Innovation & Opportunity • Tap into emerging markets that will utilize and buy aftermarket products • Customer service- Be certain your product is remanufactured/reused (certified destruction/Reman) • Remanufactured is good quality (tested, approved) • Product reuse is more sustainable (& helps curb finances) • Zero waste • Environmentally-friendly innovation (your company is at the top of its game) • Provide incentives for end of life reuse so they can receive a new part (brand loyalty & pushing new products) 38
    39. 39. McAllen Economic Development Corporation . Why McAllen EDC promotes GREEN 1) Cost-savings for companies increases competitiveness 2) McAllen known as strategic global location for companies to grow, evolve & sustain (& keep down costs) 4) McAllen becomes known as a progressive city embracing green while growing opportunities for companies to remain competitive 3) Positive recruitment of companies leads to the creation of jobs for local residents & new wealth GREEN 39
    40. 40. McAllen Economic Development Corporation . 40
    41. 41. McAllen Economic Development Corporation . Ports of Manzanillo & Lazaro Cardenas Ports of Altamira & Veracruz Using the Third Coast * Product comes in, recycled or new component comes out * Cost savings * New market opportunity * Tap into emerging markets * Use of numerous transportation means * Innovation & Customer service 200+ carriers Estimated cost reduction of a minimum 12% over current system. 41
    42. 42. McAllen Economic Development Corporation . What to say? • Share the green manufacturing story with people who need to know - Young professionals, politicians, general public - look to new ways to share the story (video, social media, web) • Look for new ways to continue the green cycle - develop central collection points that save on emissions, freight costs and deliver to McAllen/Reynosa - This saves money continues green processes Re-brand your company and process as green - the more we talk about it, the more people will see the positive environmental impacts from remanufacturing If we don’t tell the Reman story- who will? 42
    43. 43. McAllen Economic Development Corporation . Cost Structure 43
    44. 44. McAllen Economic Development Corporation . Don’t let your brand haunt you in the after life… REMEMBER: Don’t let your brand haunt you in the afterlife… RIP 44
    45. 45. McAllen Economic Development Corporation . Visit us here at Booth #225 & at AAPEX Booth #5358 45
    46. 46. Top 5 Ways to Leverage your Business as Green 46
    47. 47. #1 Branding • Develop a green logo • Create a green tagline – make sure to include in all your ads and collateral • Add “green” to your Value Proposition statement and Core Values 47
    48. 48. 48
    49. 49. #2 Become A Green Office • Develop a sustainability program that promotes reuse, conservation and preservation • Create policies and procedures designed to encourage and reward employees for their efforts to be green • Consider how to incorporate green practices into your business – fleet, administrative office, sales, etc. 49
    50. 50. 50
    51. 51. #3 Website • Create a page on your website that promotes remanufactured products as green; show the value to the environment • Use your green branding on your website to give a visual to your green efforts • Include stories of how your employees are green in their own lives • Tout your community participation with green activities on your site 51
    52. 52. 52
    53. 53. #4 Public Relations • Develop a boilerplate for your news release that incorporates a green message about your product • Develop at least two releases a year with an environmental focus • Create a video that shares your green message 53
    54. 54. #5 Social Networking • Share your accomplishments, corporate and employee related in being green and staying green through social networking sites: – LinkedIn – Facebook – Twitter – You Tube 54
    55. 55. 55 Thank You! Tom Marx President & CEO The Marx Group Scott Stoberg President & CEO AAEQ Manufacturing & Recyclers Keith Patridge President & CEO McAllen Economic Development Corporation