BEST PRACTICE BEST P R A CT ICE 00 Marketing a green brand Professor Lynette Ryals reviews what is known about the green consumer and how marketing practices have to change to promote a green brand When marketers look back on the teen years of the 21st century, the biggest change that will characterise this era – the zeitgeist of 21st century marketing – will be the green issue and marketing’s role as the ‘bad boy’, encouraging us to buy and use more of our planet’s precious resources. It is clear that marketing practices need to change. In this article I review what is known about the green consumer, and about brand marketing, and use these principles to suggest how to market and promote a brand with green values. It is clear that marketing and promoting a green brand are increasingly important skills for marketers. There is a growing trend towards the ‘greening’ of products and brands, improving their environmental and sustainable credentials. One widely-cited example is the greening of Frito-Lay’s SunChips. Already positioned as a healthier snack because of its whole grains and lower salt content, the greening of the brand that began in 2007 also involved initiatives around solar power at its manufacturing facilities, plus the first fully-compostable snack packaging (although that was later withdrawn). Interbrand has inaugurated an annual listing of Best Global Green Brands, indicating the impact that the green trend is having on brand marketing; many of the leading brands they list are existing brands that have been Persil Small & Mighty: the first super-concentrated laundry liquid ‘greened’, rather than new green brands. A green brand strives to have the following attributes: Ecological – it minimises negative impact upon the environment. Equitable – the marketing of the brand does not promote inequitable social practices. Economic – the brand encourages long-term economic development. A green brand’s position on Interbrand’s Best Global Green Brands list, for example, is worked out depending on six areas: Governance, Stakeholder Engagement, Operations, Supply Chain, Transportation and Logistics, Products and Services. The problem for marketers is that consumers are often reluctant to sacrifice style or comfort for green reasons. Unwary companies may launch a new green brand, or ‘green’ an existing brand or product, only to find that consumers are apathetic or resistant. Therefore, successful marketing of a green brand must appeal to the heads, the wallets and the hearts of consumers. To win heads, wallets and hearts, research done at Cranfield and elsewhere indicates that successful marketing of a green brand involves three steps: gathering insight into consumer practices; developing sustainable brand propositions; and delivering and communicating green values. 1 Gathering insight into consumer practices Consumers need to be persuaded that what they do really does make a difference. There are indications that many consumers are, if not cynical, at least dubious about green brands. This is partly because they believe they can’t really change the world. It’s tough to persuade a consumer that changing over to low-energy light bulbs in their house will have an effect, when they know that there are trillions of energy-wasting bulbs in the world. This phenomenon is known as ‘self-efficacy’ – consumers lack self-efficacy and don’t believe they can truly make a difference. So, to market a green brand effectively, companies need to think of ways to strengthen consumers’ perception of self-efficacy. Some energy companies have developed interesting techniques that build perceived self-efficacy. Power utility E.ON offers an Energy Fit device that demonstrates the energy consumption of specific household appliances; by informing and engaging individuals to take action on their energy use, the Energy Fit device typically reduces household consumption by 5%. The clear link between the actions of the consumer and the reduction in energy usage demonstrates to consumers that their green actions actually do make a difference. Another aspect of insight into why consumers buy green brands is the idea of social norms (socially expected standards of behaviour). Social norms have a significant impact on our behaviour, so even a simple indicator of ‘smiley faces’ and A DMAP DEC EMBER 2012 B E S T P R AC T I C E ‘frowns’ on customer bills, which tell households whether they are using more than the average power for their households can ‘nudge’ behaviours. Consumer behaviours are also affected by the choices that are offered to them. For example, talking bins are currently being trialled in UK cities London and Liverpool. Some of the bins respond with a message from a celebrity when consumers drop litter into them; other bins play music (the bin at Covent Garden plays opera and the bin near Lord’s cricket ground plays sports sounds). Similar trials have taken place in the US, Canada and Europe. 2 Developing sustainable brand propositions Although there is a segment of consumers who will pay more for green products than for the standard equivalent, they are the minority. Therefore, when marketers are promoting green brands, it is important that the value proposition appeals to a wider audience. We know that consumers are attracted to green brands that also benefit them, so the successful sustainable value proposition needs to include a consumer benefit, such as better health or saving money. One such proposition is Unilever’s Persil Small & Mighty. Small & Mighty was the first super-concentrated laundry liquid on the market. Small & Mighty’s bottle is about one-third the size of conventional laundry liquids. This reduces the amount of water used in manufacturing, the amount of plastic used in packaging, and the transportation miles to deliver it. All of this has benefits for the environment. Soon after launch, Unilever was reporting annual savings that included 33 million litres of water and 665 tonnes of CO2 (www.unilever.com). However, there are also financial benefits to the consumer if they switch to Small & Mighty; consumers are 3 cents (11%) per wash better off if they chose it over the similar wash-capacity washing powder (calculations based on company data and prices taken from price comparison site MySupermarket. co.uk). 3 Delivering and communicating green values is about winning the hearts and minds of consumers To be successful, a green brand needs to demonstrate that it has (believable) green credentials. Green values can either be used to reposition existing brands, or attached to new brands. An example of greening an existing brand is the Starbucks ‘Make your Mark’ programme. Starbucks was founded in 1971 in Seattle and is now the world’s largest coffee house chain with almost 20,000 stores worldwide. It has always espoused ethical sourcing although, over the years, it has introduced additional greening initiatives such as reduced water usage, Fair Trade coffee, and recycled packaging. More recently, it has added community-based initiatives such as ‘Make your Mark’, launched in 2001. The aim of this programme is to encourage employees, friends, families and customers to volunteer for community projects in their neighbourhoods. Starbucks donates approximately $10 for every hour baristas or customers volunteer with local not-for-profit organisations. Alongside the greening of existing brands, there are also new brands emerging that are specifically positioned in the A DMAP DECEMBER 2012 43 FURTHER READING ON WARC.COM Green Brands, Global Insight (Landor Perspectives 2011), Mindy Romero, WPP Atticus Awards 2011 Electrolux Green Range Vacuum Cleaners: Vac From The Sea, Cannes Creative Lions, Creative Effectiveness Awards, 2012 Five Reasons Not To Have A Green Brand (And Why Those Reasons Are Wrong) (Landor Perspectives 2010), Russ Meyer, WPP Atticus Awards 2010 SunChips: Building A Pre-eminent Green Brand, Warc Prize Winner 2010 Green Brand Fatigue, Anne Sharp and Kate Newland, Admap, April 2010 OTHER RECOMMENDED READING Best Global Green Brands, Interbrand Report 2012 Cranfield On Corporate Sustainability, David Grayson and Nadine Exter 2012 green space. Examples include American retail chain Whole Foods Market, selling healthy products based on sustainable agriculture while striving to recycle, reuse and reduce waste whenever possible; and Vivavi, which produces and designs furniture and furnishings that use environmentally-sound materials, including recycled materials and organic cotton. In the UK, Innocent Drinks has reached a turnover of more than £100 million in just 12 years from launch, based on a strong value proposition relating to pure ingredients, green values (packaging, tree-planting, support for African fruit growers and their villages), and quirky advertising and promotion (including the ‘superheroes’ advertising campaign and the company’s own YouTube channel featuring company and customer videos). These steps – understanding customer practices, developing green value propositions that deliver benefit to consumers, and delivering and communicating green values and activities – are the key stages to successfully marketing a green brand. But, competition is hotting up. Examples like Innocent Drinks show that there is money to be made from green brands, so brand managers need to act now to gain first mover advantage. What is more, companies cannot just rest on their laurels, but need to launch frequent green initiatives, as Starbucks has done, to keep their value proposition refreshed. So, marketing a green brand successfully is not just a one-time shift; instead, it is about a cycle of change, communicated and updated on a regular basis. more best practices at www.warc.com