EcoBlog

Alternatives to Eco-Labels

2009-06-29T18:56:00Z

Eco-labels are a popular and effective way to certify that a product really is as green as it claims to be. But what are some alternatives to eco-labeling, and what are the benefits of steering away from third-party certification? By Jacquelyn Ottman, with Sarah McGrath

Congratulations! You have a shiny new green product and you want to market it the right way. You worked hard to make it state-of-the-green-art – and you want people to believe that the product really is as green as you claim it to be. You naturally think of going the eco-labeling route, but stop. Unless it’s required by certain retailers or other customers, it may not be necessary. There are plenty of alternatives (as well as complements) to pursuing certification from a third party, no matter how trusted or well-known that third party is among even the greenest of consumers.

Eco-Labels: Benefits and Pitfalls

An eco-label is granted by a third party to certify the green-ness of any aspect of a product (single attribute label) or its entire life cycle (multi attribute label), including how it is produced (no CFCs), to the materials it uses (recycled, renewable), to where it goes after disposal (compostable). Eco-labels can be issued by government (EPA’s Energy Star, USDA’s Organic), environmental groups (FSC), NGOs (UL, GreenGuard), or trade associations (USGBC, creators of the LEED program).

Eco-labeling can be pretty useful. In a 2007 BBMG poll, 50% of consumers surveyed said that they believe a claim that is accompanied by an eco-label.

But you may want to think twice before pursing an eco-label, for several reasons. EPA’s Energy Star is free (though testing is necessary), but MBDC’s Cradle to Cradle can be pretty pricey. There are 299 eco-labels out there, but few are widely recognized or associated with documentable purchase influence. Energy Star, USDA Organic, and FSC Certified are the most widely recognized eco-labels, but opting for some of the other 296 would require massive amounts of education to make sure consumers know what your label means. Space on a package is tight; you may need to use that space for other, more important messages. Finally, an appropriate eco-label may not exist for your product category. If you want to market a greener pair of shoes, for example, you may be out of luck.

All this raises the question: Are there any viable alternatives to using a third party eco-labeling organization? The answer is a resounding yes!

Alternatives to Third-Party Eco-Labels

Many things can substitute for or complement eco-labels. Here are a few.

1. Follow the FTC Green Guides. The FTC has issued Green Guides that, if followed, can ensure that you provide clear, credible communication for just about any green marketing claim. The Guides are currently being updated to reflect terms new to the sustainable branding vernacular such as “carbon offsets,” “renewable,” and “sustainable,” so watch out for new definitions expected later this year.

2. Your Own Good Name. Companies that have a good reputation (e.g., Tom’s of Maine, Seventh Generation) don’t use eco-labels because they don’t need to – their product offerings and corporate reputations speak for themselves.

3. Endorsements. Get a respected environmental organization to endorse your product, such as Sierra Club’s endorsement of Clorox’s GreenWorks line of cleaning products. Note: Sierra Club and Clorox were forced to disclose the fact that this endorsement came with a fee.

4. Transparency. When companies voluntarily disclose their ingredients, it shows that they have nothing to hide and trust is established. Tom’s of Maine lists all the ingredients on the side of their toothpaste cartons, including the source, and why that ingredient is used in the first place. SC Johnson’s Green List proactively discloses the ingredients used in its products and classifies those ingredients according to their impact on the environment and human health. Many Web sites, e.g., GoodGuide, rate consumer products – another opportunity to promote ingredient disclosure and raise the bar for competitors who won’t.

5. Leverage Awards You Have Won. If your company or product has been recognized by industry, government, or another group for its environmental achievements, let consumers know about it. For example, the Toyota Prius has never been certified with an eco-label, though in introducing the Prius, Toyota ran ads touting the fact that their new offering “has been honored by the United Nations, the Sierra Club and the National Wildlife Federation.” Over the course of the Prius’ seven-year history, Toyota has also been quick to tout such accolades as Motor Trend “Car of the Year” in 2004 and JD Power and Associates’ “Most Dependable Compact Car” in both 2008 and 2009.

6. Consider a Self-Declaration. Representing a growing trend in the electronics industry to complement Energy Star and EPEAT certifications, many companies, especially multinationals for whom eco-labels can represent cost and logistical nightmares, have developed their own programs to underscore the green-ness of their products. Examples include: HP’s “Eco Highlights,” Samsung’s “Eco-mark,” and Panasonic’s “eco ideas."

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Watch Out, Prius!

2009-06-12T17:33:00Z

The Toyota Prius currently dominates the market for hybrid cars, but the Honda Insight wants to change that. Who will come out on top in 2009? By Jacquelyn Ottman, with Sarah McGrath

After selling 285,000 Priuses in 2008, Toyota’s star vehicle has taken a big hit in 2009—sales are down 45 percent since January. To compound Toyota’s hybrid troubles, Honda re-launched its Insight hybrid earlier this spring—right on the heels of the introduction of the Prius Third Generation. Based on our assessment of the marketing efforts behind the Prius and the Insight, we are confident that the new Insight will give Prius a run for its money.

The airwaves and print media have been swamped with splashy ads from both sides. Priuses drive through a landscape of people dressed up as dancing flowers and trees promoting “Harmony between man, nature, and machine.” The Insight motors down a road while legions of people cheerily pop up along the way—proving that the Insight is “A hybrid for everyone.”

Honda’s advertising focuses on affordability for “everyone”—somewhat more hard hitting than Toyta’s emphasis on the green aspects of driving a hybrid. The Insight’s $20,000 sticker price is $2,000 below that of the Prius. (To compete with the lower-priced Insight, a $21,000 Prius will be introduced later this year.)

Hybrid cars have largely outgrown their initial clientele of early adapters and deep green consumers. Both Toyota and Honda recognize that capturing the mainstream is critical for future success. But compared to Honda’s glamour shots of the Insight as a family car with lots of storage, the cutesy costumes and waving trees featured by Toyota seem to miss the mainstream message entirely.

Honda’s more practical focus makes the Insight a serious competitor for the Prius in this tough economy—and also a contender for long-term success.

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Scott Naturals—Green Done Right?

2009-06-12T13:24:00Z

Does a new line of green paper products really live up to its tag line of “Green Done Right?” By Jacquelyn Ottman, with Sarah McGrath

On Earth Day, April 22, 2009, Kimberly-Clark launched Scott Naturals, a line of household paper products made from partially recycled content. Marketing communications sport the tag line “Green Done Right.” One could argue this line overstates Kimberly-Clark’s achievement, but the company deserves to be lauded for taking a step in the right direction.

“Turn over a NEW leaf…and take a green step without sacrificing quality!” is the promise for this new brand of paper towels, bath tissue, napkins, and flushable wipes that offers the combination of high performance and green. That Kimberly-Clark strikes the coveted balance of quality, performance, and environmental benefits at a price comparable to all-virgin counterparts is commendable indeed.

Scott Naturals products incorporate recycled content, ranging from 40 percent in the bath tissue to 100 percent in the flushable wipes. Cardboard rolls for paper towel and bath tissue are made of 100 percent post-consumer recycled fiber, while the plastic packaging contains 20 percent post-consumer recycled plastic. Roll sizes are bigger to minimize packaging and reduce the environmental impacts of shipping—and are also more economical.

Many brands on the market, including Marcal and Seventh Generation, produce paper products with 100 percent recycled fibers and a high degree (usually above 60 percent) of post-consumer content. Kimberly-Clark caters to the high end of the market and is seeking to differentiate itself from its worthy competition by delivering a recycled paper product with no presumed difference in softness and absorbency. After years of only using virgin paper fibers in their brands (which also include Cottonelle, Kleenex, and Viva)—and taking flack from environmentalists for their forestry practices—Scott Naturals definitely represents a significant achievement for Kimberly-Clark.

But what about the name, Scott Naturals? Does a paper product made of recycled content and bleached by a chlorine-containing compound deserve to be called “Natural?” In our book, not really. Their name, Scott Naturals, plays on consumers’ positive associations with all things natural and could be construed as misleading. (There is no legal definition of the term as of yet.)

Despite its name, Scott Naturals represents a big step forward for a company that has only just started greening its products. Given its lackluster environmental record, Kimberly-Clark may benefit from third-party green certification to verify its various recycling claims. Obviously it’s still too early to tell how successful this first foray into green will be, but judging from the positive buzz that is still surrounding the launch of Scott Naturals, we wouldn’t be surprised if competitors at P&G and Georgia-Pacific weren’t scrambling to respond with eco-innovative products of their own. END

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EcoPower to the People

2009-06-03T17:44:00Z

Whom do you trust to make green marketing claims? The answers surprised us. Yesterday at the Sustainable Brands ’09 Conference in Monterey, California, we polled all 350 participants about the notion of trust when it comes to verifying green claims and create standards for products.

We specifically asked these on the cutting edge of green and sustainability leaders and activists who they themselves trusted to this important task, who consumers trusted, and who they thought was best equipped to verify claims and create standards for green products and marketing.

The Results

We specifically asked them to rate five groups on a scale of 1 (most) to 6 (least): Environmental groups, NGOs and other third parties, Retailers, Federal Government, Manufacturers, and Others. This write in vote yielded some intriguing responses.

The results were so consistent, it’s not necessary to get into the actual numbers (though I’ll give them to you if you want.) In a nutshell, the results stratified into three categories: NGOs and environmental groups came out squarely on top, with NGOs a bit in the lead; the federal government settled somewhere in the middle (a little surprising to me, quite frankly), and retailers and manufacturers ended up on the bottom of the pile.

I wasn’t too surprised by manufacturers’ poor showing; after all if industry ranked high, there would be no reason for ecolabels in the first place. I was a bit surprised by retailers poor showing, though it may make sense given what may be construed as a conflict of interest—what retailer wouldn’t want to label every product on its shelves with a green label to make it sell faster? Such a poor merchant showing suggests that the many retailer eco programs may be misplaced —examples include the Home Depot’s Eco-Options, Staples’ EcoEasy, and the Office Depot Green Depot.

These poll results were presented at a featured breakout session at the conference. So it was fun to compare these results with poll data presented by the panelists which included Underwriters Laboratories, the product safety giants who announced their new claims certification and standards setting service, GreenGuard, the indoor air quality certifiers, and representatives from the U.S. EPA, the creators of the Energy Star label for energy efficiency, the Design for Environment label for green chemistry (used in many cleaning products), the Smart Way label for transportation like FedEx, and Water Sense, for water-using products.

If our informal participant poll is correct, the future of ecolabeling and claims certification belongs to players like UL and GreenGuard—Independent, third party certifiers with a stake in ensuring the transparency and credibility represent the future of ecolabeling. UL, in particular, may represent the most sustainable of the players given their longevity (115-years strong), reach around the world, especially in China and other countries where most products are manufactured (7000 employees), and formidable technical expertise. (Full disclosure: UL is a client of ours.)

The Federal Government is not going to go away as an ecolabeler. Despite surprisingly middling credibility on our little poll— I personally would welcome readers input as to why this is so—The Federal Government is filling in a much needed gap not being filled by NGOs or the private sector to label critical industries such as organic food, energy and water-using products, and transportation. Diane Feinstein, the Senator from California, is readying a bill which would empower the Federal Government to create a multi-attribute eco-label much in the spirit of the ecolabels generated by 25-plus other countries in the world.

What surprised me most on the poll—and I recommend we all keep our finger on the pulise of this is the write-in vote. It’s easy to check a box or circle a number on a questionnaire, but much tougher to write in a remark. That’s why businesses pay so much attention to consumer letters even though submitted by such a small percentage of total.

Power to the People?

As we added the results, we noticed that questionnaire after questionnaire included “trusted friends” or “informed peers” among the "Others" that they would give high credibilty marks to, perhaps moreso than the groups listed in the formal poll. This suggests to me that ecolabelers will likely proliferate. Awarenss for ecolabels will no doubt grow. But at the end of the day, the most potent source of credibility and purchase influence may exist just over consumers’ back fences and cubby walls. The increased transparency that consumers are demanding these days – evidenced in ingredient disclosure, and access to the very farmers growing one’s potatoes—will only fuel this trend. In the end, the power may rest with the people.

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Green Marketing Success Strategies From Sustainable Brands ‘09

2009-06-03T17:31:01Z

Optimism is the sentiment coming from the Sustainable Brands 09 conference taking place in Monterey, California this week. Consumer polls suggest that concern about the environment (relative to the economy) and stated intent to spend premiums on green brands is holding up in a tight times. Importantly, this is being played out in the green marketplace as well.

Concrete case examples of brand successes being presented at the conference suggests that pursuing a course of sustainable branding is indeed the route to sustainability even—against a backdrop of the toughest economic times any of us has ever experienced. Cases being presented include those of Brita water filters (still growing in response to a lingering backlash to last year’s eruption against bottled water), Burt's Bees natural personal care products, GreenWorks natural cleaning products, and SunChips whole grain healthy snacks. What they have on their side is, as consumer packaged goods, are low out of pocket costs, they’re in line with today’s “stay at home” culture, they are in sync with consumer expectations for product quality and efficacy, they enjoy the halo of big trusted brand names—and resources —of companies like Clorox and Frito-Lay.

Let’s dive deeper into Clorox’s Greenworks and Frito-Lay’s Sun Chips, two of the brand successes that were showcased yesterday morning by their brand managers. Both are placing their bets squarely in the sustainable brands and green marketing camp. And both are grabbing share from entrenched competitors, enjoying the loyalty of conscious consumers who find a way to reflect their values in these products —products unlike green counterparts of an earlier day, actually work.

So what makes them work? I noted ten specific green marketing success strategies. These same strategies can work for your brands. We'll be talking about them all in more detail tomorrow at my workshop entitled, Green Marketing and Eco-Innovation. Here they are.

Green Marketing Success Strategies Showcased at the Sustainable Brands 09 Conference

1. Lead from desirable primary product benefits—efficacy, naturalness, healthfulness (rather than environmental product attributes). It’s clear by now that consumers won’t trade off efficacy for the planet (and why should they—to go to stores with their shopper hats on not citizen). Health is the number one reason why consumers are motivated to act on green. Greenworks literally works, and its natural —who can beat that combo? Sunchips is healthful and tastes great. This is consistent, too, with research presented at the conference by Diane MacEarnen of Big Green Purse fame indicating that moms especially are more motivated by the consequences of environmental ills like global climate change, e.g, childhood asthma, rather than the issue itself -- and all of its scientific underpinnings.

2.Underscore authenticity with packages that use renewable materials and are compostable. It's not enough to have a green product; the package, indeed every aspect of your product throughout it’s lifecycle must be green too.
3.    Reinforce credibility through labeling and third party seals. EPA’s Energy Star, Design for Environment, used by Clorox Greenworks, were discussed quite a bit at the conference.
4.    Provide transparency: research from Landor presented at the conference astounded me. 83% of consumers now want to know where their food comes from. The Clorox presenter mentioned that his product ingredients are all on his company’s GreenList. Later in the day, I was delighted to learn that the company is in the process of disclosing the exact ingredients (though, understandably not the percentages) of each ingredient in their products, including GreenWorks—in spite of proprietary considerations.
Representing a new development, Lay’s is now making it easy for snackers to find out which farmers supply the potatoes from Lays. I suspect this is a natural next step for SunChips.
5.    Cultivate relationships with new heroes. Celebrities are proven green spokespeople—Leonardo DiCaprio, Better Midler, Gwyeth Paltrow all provided free exposure and excitement for the introduction of Toyota’s Prius. Demi Moore’s tweets helped propel awareness of Sun Chips’s new compostable bag. Try authors and experts, too.
6.    Communicate processes as well as green product benefits. Sun Chips got a lot of green marketing mileage out of a solar powered billboard—the perfect medium for highlighting the use of solar to power their factory. (I couldn’t help thinking what a “natural” it would be for Frito-Lay to calculate and communicate the sun energy actually embodied in the chips themselves!)
7.    Humanize your effort. Adopt a cause. Coincidentally, two sequential presenters yesterday had each adopted Greenburg, Kansas, the city that had been completely wiped out by a hurricane last year.
8.    Educate and empower consumers. Thomas Oh, Frito-Lay’s SunChips brand manager, described their intriguing website entitled, GreenEffect.com that encourages consumers to share ideas to save the planet.
9.    Partner to extend credibility, reach and resources. Some of the intriguing partners discussed this morning include National Geographic, PG&E, Google and the Sierra Club. (Mark Baker from Clorox disappointingly did not address issues that flared when the green cognescenti discovered that the Sierra Club was getting compensated for its endorsement. So be careful….)
10.    Leverage social networks. There’s lots of blogging, twittering and Facebook pages going on. I did get the distinct impression though that Facebook pages are not always so successful. We are still understanding how to use this powerful medium.

In closing, I offer two empowering thoughts to help unleash creativity and help you take advantage of these strategies. One, don’t worry about not being perfect! I was impressed that SunChips announced its compostable bag one full year before actually being available. Thomas Oh encouraged everyone to not to be afraid to put a stake in the ground! Makes sense. In doing so, one gets the buzz started and builds enthusiasm. Don’t be afraid it won’t happen. Frito’s got too much at stake not to make sure the innovation will actually happen. Remember the backlash Bill Ford Jr. experienced when the green cars he personally promised were held up by a management team wedded to presumably more profitable SUVs.
Secondly, leverage sound science. Hefty bags got into trouble years ago by making bags that would merely disintegrate into tiny pieces of plastic, rather than bioplastics that are actually biodegradable. Call it greenwashing. But more accurately, the science failed. Greenworks uses sound science to concoct cleaners made of coconuts and other natural ingredients that work. SunChips has perfected a bag that protects and preserves the chips—and literally disappears before your very eyes.    END.

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Whom Do You Trust to Make Green Marketing Claims?

2009-05-27T18:21:00Z

Much has been written about greenwashing and its ability to undermine the credibility of green marketing, suggesting that industry can’t be trusted to make green marketing claims and provide information that is credible, straightforward and can accurately guide purchase decisions. That industry falls short on the credibility front does not surprise, given: industry’s long history of polluting our air and water; the environment is intangible—we can’t see the fumes that don’t come out of the powerplant when we use a CFL, the science of making claims is imprecise, for instance, packages may be recyclable in theory but not in practicality; and finally, the environment is emotional. It’s easy for manufacturers to play on consumers’ good intentions to recycle and cut down on waste.

So how do we instill and/or restore trust in green marketing claims and ecolabels? Can industry get its job together? Whose job is it to bolster credibility that may be lost forever? There are several candidates, each with differing levels of credibility and suitability. NGOs and government are obvious choices. UL has over one hundred years of credibility vouching for the safety of electrical products. Good Housekeeping just launched a green seal. And of course, there’s Consumer Reports. Do they represent credible green marketers?

At Jacquie Ottman's session at the Sustainable Brands 09 conference in Monterey, CA next week, representatives from EPA (Energy Star and other ecolabels), Underwriters Laboratories, and Air Quality Systems (GreenGuard) will meet for her annual panel on ecolabelling, presenting their programs, putting forth data supporting their own credibility —and leaving it to expected 350 participants at this sustainable branding and green marketing summit to decide—whom can we really trust to make green marketing claims—and why.

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A Tale of Two Green Surveys

2009-03-26T12:49:00Z

One recent consumer survey says it is the best of green times; another, the worst of green times. Has trying to protect the environment gone out the window in the current recession - or not? By Jacquelyn Ottman, with Lisa Martin

The 2009 Cone Consumer Environmental Survey, released in February, maintains that, "Consumer interest in environmental purchasing not eclipsed by poor economy." The report finds that 34% of American consumers indicate they are more likely to buy environmentally responsible products today, and another 44% indicate that their environmental shopping habits have not changed as a result of the economy. So, according to Cone, buying green has not been affected, despite the state of our economy. Or has it?

According to new consumer research from Mintel, also released in February, green purchasing has stagnated. Their headline reads, "Mintel finds fewer Americans interested in 'going green' during recession." The number of Americans who say they "almost always" or "regularly buy" green products remains unchanged since last year, at 36%. This comes after tripling the previous year from 12% in 2007 to 36% in 2008. According to Mintel, adopting a greener lifestyle has taken a backseat for consumers with each dollar being stretched to the max.

One survey that we really like is the LOHAS report from the Natural Marketing Institute. NMI finds that 17% of adult consumers fall into their deep green LOHAS (Lifestyles of Health and Sustainability) segment while another 17% are "Naturalites," consumers who focus on natural foods, cleaning products and the life. Put the two segments together and voila! it adds up to 34% - the same percentage of still green consumers that each of the two surveys discovered.

These conflicting results reflect a case of looking at the glass as half full or half empty.

Green purchasing is holding up among the most ardent green consumers since it is equated to both high quality and health. Women with children are core green consumers and they are troubled by pesticides on their Granny Smiths and concerned about chemicals in their Mr. Clean. Even in a recession, committed greens are investing in the health and well-being of their families.

But sales is where the rubber hits the road. We would be interested to see the actual sales data of greener products across a range of consumer product categories. How's your green business holding up? Please post a comment below and let us know.

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Greenest Notebooks—or Just Boldest Ads?

2009-03-03T17:06:00Z

In a recent blog post, Bob Pearson, Dell’s VP of community outreach and green marketing, panned Apple over a well-publicized - and ostensibly controversial - ad campaign, "The Greenest Family of Notebooks." As one of Dell’s biggest competitors, it comes as no surprise that Dell would have some not-so-friendly things to say about Apple’s bold green marketing effort.

Among Pearson’s scathing accusations, he claims that Apple's self-proclaimed "world's greenest laptops" are more smoke-and-mirror rhetoric than substantiation, and that Dell's laptops demonstrate a greater commitment to the environment than Apple's. The main concern addressed in the post is the accusation that Apple is not involved in the ongoing debate, citing that "Apple employees are not allowed to blog," which, while at least partly accurate, is not very relevant. Finally, he mentions Dell's recycling program, their carbon-neutral construction, and reduction of packaging, and questions whether Apple has achieved any of these goals.

Pearson’s blog post elicited quite a few responses, ranging from outright support for Apple's green marketing effort including who’s calling the kettle black type claims to strong agreement with Pearson.

Fact is, neither company can be considered green or even greener than the other. Both rate fairly low in Greenpeace’s ratings, and well behind such competitors as Nokia, Samsung and Fujitsu.

According to Green Inc., the NYTimes blog, despite its achievements for using recyclable aluminum, removing PVC and brominated flame retardants from the computer, Apple still does not have a completely “green” computer, as their claim, “the greenest family of computers,” might suggest.

Pearson might be better off bringing a quiet case to the NAD – the National Advertising Division of the Better Business Bureau, which reviews the truthfulness and accuracy of advertising and green marketing claims, than loudly griping in public on a record, which according to Greenpeace is itself less than perfect and declining of late, and whose own carbon neutral claims have been questioned.

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Hey, Nestle: Don’t Communicate --Eco-Innovate!

2008-11-20T15:01:00Z

If only Nestle had used good green marketing efforts and communicated its efforts to green its bottled water business sooner, it wouldn’t be in the mess it’s in now. Right? Wrong!

Contrary to what Kim Jeffery, CEO of Nestle Waters, laments to BusinessWeek, the real issue with bottled water lies in consumers’ minds (and the advocates who influence them), not in pricey carbon analyses showing that lightweighting the plastic bottle is the solution to reducing the environmental impact of bottled water. The real issue simply stated is that it’s environmentally wasteful to ship water across the country when supplies of clean fresh tap water are readily available — and legions of water bottle companies are lining up to make sure it is as convenient as branded bottled water to tote around.

For insight into Nestle’s real problems, read BusinessWeek's companion piece by Judy Estrin, CEO of JLABs and author of "Closing the Innovation Gap." Taking her thoughts one step further, I can’t help but think that Nestle would be much better positioned to compete today if they had, like Intel with its move from making memory devices to making microprocessors, considered itself to be in the "convenient refreshment" business. Rather than simply focusing on incremental ways to make drinking Poland Spring bottled water less impactful through package-focused initiatives like lightweighting and recycling, it should have invested in new technologies to make tap water more pure and convenient.

Leveraging the Poland Spring name onto Brita-like water purification systems might have been a start. Launching Poland Spring water purification tablets akin to Procter & Gamble’s "Pur" might have been another. Or putting the two ideas together into a Nalgene-type bottle that instantly purifies water on the go is yet another. Instead, by focusing on incremental environmental improvements like lightweighting, however worthy, Nestle stood by while companies outside its own industry stole its customers.

Lesson: It's one thing to communicate greening initiatives, and another thing entirely to eco-innovate the next generation of green products that can speak loudly for themselves. Now, that’s truly sustainable. Tha'ts truly good green marketing.

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Does a Weak Economy Mean Weak Green Sales?

2008-10-23T17:57:00Z

Green marketers of every stripe have been asking me: "Will a weak economy weaken sales of green products?" For people who think green products cost more, the answer is yes. To (reverse) paraphrase John F. Kennedy, a sinking sea should lower all boats. And it's still a little early to tell if sales of many green products and services have been hurt quarter to quarter.

The key thing to focus on, however, is how a softening economy might not dampen your own green products sales. In some cases, it just might help.

For instance, according to The New York Times, business is booming for reusable plastic water bottles that make it easy for consumers to use tap instead of bottled water. Information Resources reports that sales of water filters increased 16% in the first half of the year; I believe they should continue to run strong given their association with health; similarly, other products perceived as healthful, e.g., organics, should hold up as well. If you are a green marketer and sell your organic food products on the basis of taste, you may want to use this opportunity to shine a stronger spotlight on your brand's health preventive advantages.

Make money in this downturn by using green marketing to show consumers how they can save money. The press is awash in articles about how consumers are flocking to Goodwill, and Wal-Mart's stock is one of the few blue chips that are up this year, as is that of Campbell's and General Mills. As reported in Business Week, since Wall Street imploded earlier this month, Freecycle.org has been registering 50,000 members per week, up from 25,000, and Freecycle and Freegans (a.k.a. "Dumpster Divers") are among the fastest growing groups on Yahoo!

Even green marketers within the downtrodden financial services industry are finding creative ways to make green from green. According to Mintel, PNC Bank now offers a home equity line of credit for those making green home improvements, and the U.S. Federal Credit Union sells auto loans with lower rates for customers with an eye on high-mileage vehicles.

Green marketing strategies like these can help your business weather today's storm while positioning yourself for growth in sunnier days.

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The Power of Green Lies In Marketers’ Hands

2008-10-22T17:31:00Z

Many people think the power to restore our environment lies in the hands of technical types like scientists and engineers, even lawyers and legislators. But the real power of green lies in the hands of marketers - we, the creative folks who have the power to design and promote cleaner products and technologies and help consumers evolve to more sustainable lifestyles.

It may be hard to fathom, but over 75% of the environmental impact that a product throws off during its lifetime is determined at the design stage, when, for instance, the materials are chosen, the recyclability of a product is determined, and when the amount of toxic chemicals it embodies is decided. And it doesn't stop at the design stage. Marketers often determine the concept, too. That's where the real leverage for our innovative skills comes in!

Consider a toothbrush. Want to lessen its environmental impact? Start by making it out of recycled plastic, plastic made from corn, and educate on how to recycle or compost it. Then make the head replaceable and recyclable, too. Cut down on its packaging by only wrapping the bristly head. Think you're finished? Not a chance! That's because the toothbrush is part of a system-the water, the toothpaste and the box the toothpaste comes in.

Now multiply all of these impacts over one consumer's lifetime and then again for all the consumers on earth at one time. These cumulative impacts may pale in comparison to substituting an entirely new concept; let's say a stick of edible chewing gum laced with germ fighting enzymes.

Now strategize its way into consumer's hands. Thinks it's too much of a leap to market this idea to adults who might be set in their ways or creep out on the idea of enzymes in their chewing gum? Then start to seed the concept into society by appealing to children. Enlist the help of a "Sesame Street" character and target parents looking to end the nightmare of getting the kids to brush.

Ever heard of a chemist thinking this way? Hell no!

Marketers, start your engines! We're the ones who can dream up new product concepts, and we're the ones who can sell them to mainstream consumers (not just the deep green consumers who are born predisposed to all things "eco.")

Take the Toyota Prius. A fine car with a hybrid engine. Premium price, not too likely to be offset by fuel savings. So what gets consumers over the premium price hump as well as the risk posed by new technology? Answer: A distinctive silhouette that helps owners project their values, on-the-mark advertising that focuses upon such direct benefits as super quiet ride and fuel efficiency. And a publicity machine that engenders the priceless support of Hollywood celebrities showing up at the Oscars in a Prius rather than a stretch limo.

Want to start making a difference on your job? Consider the many other solutions that are waiting in the wings with the potential to capture the attention of consumers with your help. For instance, we already know how to design homes and offices that use energy sparingly. We already know how to make construction materials and commercial and household furnishings that reduce the threats of indoor air pollution. We know how to design kitchens to make it easy for people to recycle and compost waste. We know how to reuse water from indoor plumbing systems to make lawns and gardens thrive. We know how to grow food using fewer or no chemical pesticides and fertilizers.

Some of these technologies are being embraced by deep green consumers. But to really make a difference, they need to be embraced by the mainstream. That's where marketers can come in. Ask: What will it take to: Make greener products and behaviors cool? Get all consumers paying the small premiums necessary to bring such products to market? Look to some recent green marketing history for help.

Jimmy Carter wearing a sweater wasn't cool, and it didn't motivate consumers to turn down the thermostat. But the Energy Star label is cool. Why? It relies on technology to create products that are highly efficient as well as high quality (read: requiring no trade-off in consumer habits). A decade's worth of advertising focusing on such benefits plus the attendant savings on home and office electric bills now make the Energy Star label the second most recognized eco-label behind the three chasing arrows denoting recycling.

Herman Miller's Mirra Chair is cool. It not only adheres to strict protocols for eliminating toxics in its manufacture, it can be disassembled for recycling in 15 minutes with normal tools. It is now on its way toward becoming a design icon in its own right, environmental attributes or not.

Tom's of Maine line of personal care products, now owned by Colgate-Palmolive, stresses all that consumers desire in today's personal care offerings: natural (read: safe), good-tasting, and trustworthy. (How many toothpastes do you know that come with an ingredient statement with a full explanation of each ingredient's role, as well as a letter from the head of the company?)

Take a shot at applying your own creativity to develop and market new products that allow consumers to live their lives more sustainably - and make some green marketing history yourself!

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Exxon Called “Climate Friendy”…What Did You Expect?

2008-10-22T17:27:00Z

The five companies consumers consider most "climate friendly" are GE, BP, Toyota, Wal-Mart, and Exxon. Here's why I'm not surprised (ok, maybe a little).

On the surface, the results of a recent survey by U.K.'s Climate Group and Lippincott, the brand consultancy firm, seem to fly in the face of what all card-carrying sustainability pros believe - walk the walk or consumers will cry "BS!" The survey found that 76% of Americans couldn't name a single "climate-friendly" company despite significant amounts of investment by American businesses attempting to portray their green bona fides. So what's going on? Has all that investment and green marketing been for naught? I argue not.

Frankly, I'm not surprised that the five companies mentioned most often are GE, BP, Toyota, Wal-Mart, and Exxon. (Ok, I'm a little surprised at this last one.)

Take note of what the survey results are not reporting: If 76% of consumers failed to name a single climate-friendly company, then a solid 24% could. Not bad considering that global climate change has only come to the fore as an issue in the past two years.

Heed the rule of thirds: the bottom third of consumers will never be interested, the top third will influence everyone else, and the middle third will simply follow the leaders. So the critical learning here is that the corporate messages are getting through to the top one-third - right where they're ostensibly having the most impact.

That this top one-third mentioned companies in energy-related industries, suggests they - unlike their counterparts in the other two groups - understand the links between climate and energy-related industries where the potential for the greatest impact lies; normally one would expect to see familiar names like Coke and Procter & Gamble in surveys of this kind.

All five leaders have been investing significant sums advertising their environmental achievements, including Exxon, so it is not surprising that Exxon shows up on the list.

The lessons? Keep in mind that the target audience for sustainability communications is not all consumers but your consumers and other stakeholders. The test of your efforts is not whether an independent survey deems you to be successful, but your own in-depth tracking research. Is your message getting through? To whom? If not, you may need to adjust such factors as media (deep-green consumers tend to use the internet, and rely on word of mouth from other influentials), media weight and, of course, distinctiveness of your message.

Eco-Logos: A Double-Edged Sword?

2008-10-22T17:20:00Z

Eco-logos are all the rage - but how valuable are they as a green marketing tool? Are there some hidden risks that warrant a second look? Let's consider the three ingredients of an effective marketing logo - green or otherwise - and their implications for the savvy eco-marketer.

Here are the three factors at play:

1. Recognizability. Eco-logos can reinforce green messages, a welcome benefit for sure. But of the myriad eco-logos on the market, only a few are known to consumers. They consist of the, chasing arrows recycling logo, the Energy Star seal of energy efficiency, USDA Organic logo, and TransFair FairTrade certification; after that recognition drops off significantly.

2. Credibility. The more trusted logos are granted by an independent, disinterested third party. For example, logos promulgated by government organizations like EPA and USDA make the cut. Same goes for the nonprofit Forest Stewardship Council's FSC certification for sustainably harvested wood, which tends to be better received than the SFI certification put forth by the Sustainable Forestry Initiative, an industry trade group.

3. Comparability. The carbon labeling system described in this article from Ethical Corporation magazine is provocative for sure -- wouldn't it be great if all products came with the carbon equivalent of an environmental nutrition label! But standards don't exist for measuring a product's carbon footprint and, until they do, any product offering one can't adequately be measured against its peers. Again, grounds for confusion.

Businesses that create their own eco-logos might be doing so at their risk. S.C. Johnson's‚ Greenlist logo, announced last week, might in the short term bolster a product's green image, but could one day be taken to task by government, NGOs, or the media for failing to include one or all of these three ingredients. For example, critics might point out that manufacturer-sponsored logos may unintentionally mislead consumers that the "certification" comes from an independent third party, rather than the manufacturer or retailer looking to sell product. Further, products with manufacturer-sponsored green logos have an unfair advantage over products that don't carry a similar seal -- consumers might infer that competitors' products failed to make the grade.

Until things shake out, manufacturers looking to reinforce green bona fides with eco-logos must tread carefully. Specifically:

Use well-recognized certifications from trusted third parties.
Ensure that consumers understand that your eco-logo is based on criteria developed by the manufacturer itself, not an independent verifier.
Use transparent processes for measuring environmental footprint.
Encourage use of the logo among other players within your industry.

The jury is still out on eco-logos as an effective marketing tool, but as consumers get increasingly savvy on environmental issues and impacts, you'd do well to make sure that, at the very least, they won't work against you.

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How to Avoid the Carbon Offset “Gotcha” Game

2008-10-22T17:07:01Z

In a market that demands nothing less than completely honest, ethical, and authentic corporate communications, it can sometimes seem like no green deed goes unpunished. The NFL catching flak for its not-quite carbon neutral Super Bowl 2008 is a case in point.

For the second year in a row, the National Football League plans to offset "100%" of estimated emissions associated with the Super Bowl. Sounds pretty good, right? The NFL is taking positive climate action, from buying renewable energy certificates to replanting acreage lost to wildfires. Unlike last year, however, organizers will not tout the event as "carbon neutral," as green groups question the league's emissions calculations. Stepping back from the carbon neutral label is a smart move for the NFL, for two reasons:

1. Uncertain metrics. Determining true carbon footprint is one of the toughest challenges of lifecycle assessment. Where to draw the limits? In the Super Bowl's case, are event organizers responsible to offset emissions created by transporting the attendees or just the team and staff? There's no universal agreement here. With critics playing a constant "gotcha" game, this is no time to make claims based on metrics that lack universal support.

2. Uncertain benefits. Critics of carbon offsets contend that the environmental benefits are often overstated. Yet even if we assume that offset programs are legit, how can we be sure that consumers will understand their intended impact? Research by the U.K. retailer Boots finds that fewer than a third of shoppers know that a carbon footprint is linked to climate change. Labels like "carbon neutral" offer little marketing payoff if your terms are unfamiliar to consumers (they're likely to think you're stretching the truth anyway), and may make you a bigger target in the "gotcha" game (see #1).

To keep your company's latest ad off the Greenwashing Index, I recommend sustainable brand builders pursue the following strategies for successful green marketing:

Work positively with multi-stakeholder groups to develop standards for carbon labeling. Aim for a scheme that consumers can understand. Nutritional labels provide a good model.

Use trusted labels linked to carbon management, e.g. EPA's Energy Star and The Center for Resource Solution's "green-e" label for renewable energy.

Focus on such internal and supply chain related carbon improvements as energy efficiency and use of renewable power and communicate progress to consumers and employees.

It's hardly surprising that carbon offsets are item number one on the FTC's agenda as it revamps its guidelines on green marketing. The NFL's experience raises some thorny questions that won't be answered anytime soon.

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Green Marketing: What Not to Say

2008-10-22T16:56:00Z

Don’t join the growing number of marketers throwing around phrases like “environmentally friendly,” “Earth friendly,” and “ozone friendly.” While such claims have a calming ring, they can be very misleading. Here's how to avoid some common traps.

The simple fact is, there is no such thing as an "eco-friendly" product; all use resources and create waste to some degree. To avoid such confusion in the marketplace, the Federal Trade Commission introduced its Environmental Marketing Guidelines in 1992. Some are some key takeaways.

Be specific. Marketers are liable not only for inaccurate statements but also for consumers' misinterpretations of their claims, as Shell recently discovered. So, don’t just say recycled content or show a chasing-arrows recycling logo (both of which could signal 100% recycled content). Instead, say carton made from 100% recycled paperboard, or minimum 30% post-consumer fiber.
Don't overstate. Biotas water bottle was theoretically biodegradable, but not compostable in backyard composters or even many municipal composting facilities. Bad press from this claim helped sink the company. (Watch out for Brooks Sports' "biodegradable" footwear insole, which looks poised to make the same mistake.)
Qualify terms such as refillable, energy-efficient, and reusable. Answer the key questions: How much? For how long? By whom? Where? Compared to what? Avoid saying recyclable, if products or packaging are theoretically recyclable but not collected by municipal recycling programs.

The next time you feel the itch to get a bit too friendly with your environmental claims, know that other green marketing professionals are taking note.

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