Sustainability
Communication at
Point of Purchase
Case Studies
Sponsored by:
Prepared by: Stratos Inc.
2009
Introduction to the Case Studies
• The company case studies
provide summary
information on participant
participant’s
s
practices in terms of what,
why and how sustainability
information is being
communicated at point of
purchase. Company’s
perspectives on challenges
and risks,, reliance on best
practice guides and
assurance practices are also
presented where applicable.
The information presented
in the case studies can be
found in the main report.
List of case study
companies:
• Aveda
• Boots
• Canadian Tire
• Marks & Spencer
p
• Mountain Equipment
Co-op
• Procter & Gamble
• Timberland
2
Examples of what Aveda communicates
at point of purchase
Product attributes –
Focus on natural / organic
properties, ethical sourcing,
animal testing
Operational performance –
Secondary focus on promoting
environmentally friendly attributes
of store fixtures
Product lifecycle –
Campaigns to encourage the
recycling of bottle caps
Global & community issues –
Campaign to encourage the use of
wind power
WHY communicate about sustainability?
• Aveda communicates about sustainability because it is integral to its
founding mission: “to care for the world in which we live, from the products
we make to the ways in which we give back to society”. The company’s
entire product line has been developed from plant-based sources.
• Sustainability point of purchase (POP) communication helps convey Aveda’s
beneficial product attributes, environmental and social performance, and
provides a basis for brand differentiation.
differentiation
• Consumers remain loyal to Aveda because they are able to make a choice
that is good for the planet, without compromising product performance.
What media does Aveda use?
• Aveda communicates the sustainable attributes of its products by printing
related information directly on its packaging. It tells unique “stories” about
product development through the use of in-store posters and through
interactions with trained staff during product trials and informal
conversations.
CASE STUDY
COMPANY PROFILE
Aveda manufactures and retails
professional plant-based hair care, skin
care, makeup, Pure-Fume™ and lifestyle
products.
Founded in 1978 with the goal of
providing beauty industry professionals
with high performance, botanically based
products that would be better for service
providers and their guests, as well as for
the planet.
www.aveda.com
WHY? Brand and
Consumer Loyalty
HOW? - Aveda strives for a
sustainable consumer experience
though the use of: labels,
posters, displays, packaging, and
trained staff.
• For initiatives that call the consumer to action, Aveda communicates
primarily
i
il th
through
h th
the use off posters
t
and
d interactions
i t
ti
with
ith staff.
t ff However,
H
occasionally, labels are applied to packaging to highlight a featured product,
e.g. earth month product.
3
CASE STUDY
For Aveda, an integral part of a successful sustainability
communications program is getting the product’s
performance right (in terms of quality, functionality and
sustainability) before communicating with consumers.
●
Aveda communicates about only one main level story at a
time and keeps the message simple. For example, during Earth
Month,, Aveda might
g present
p
posters
p
highlighting
g g
g the p
positive
impact of organic farming on local access to clean water. Because
of the organic ingredients in Aveda’s products, this messaging is
ideal because it links the product value chain to
● Staff
St ff interactions
i t
ti
are a particular
i l emphasis
h i off Aveda’s
A d ’
sustainability communication efforts. Managers participate in
monthly sessions that focus strongly on the sustainability
attributes of new products. Staff also receive comprehensive
sustainability issues, and educates the consumer on these
orientations upon hire and are frequently “tested”
tested by secret
issues at the same time.
shoppers about their knowledge of product sustainability
●
attributes.
To supplement Aveda’s focused POP communication, more
detailed information and a wide variety of sustainability stories can
be found on the company’s
website. ● Aveda also focuses on
practical messaging that informs consumers about specific actions
they can take to reduce their environmental footprint. The poster
above highlighting Aveda’s commitment to renewable energy
might
i ht b
be supplemented
l
t d by
b posters
t
encouraging
i
consumers to
t use
●
In order to gain assurance that their
sustainability-related claims are authentic, Aveda’s Earth
and Community Care Team works with the Estée Lauder
legal department to review each sustainability-related claim
before making it public.
For example, Aveda authenticates
claims related to energy efficiency, carbon footprint and offset
greenhouse gas emissions.
renewable energy sources. This can help consumers feel part of
the solution and engages consumers on Aveda’s mission.
4
Examples of WHAT Boots Communicates
at Point of Purchase
CASE STUDY
Product attributes
Focus on carbon footprint
COMPANY PROFILE
Product lifecycle
Washing in cold water
Leading UK health and beauty retailer and
member of Alliance Boots.
WHY communicate about sustainability?
•
Boots has focused its sustainability communications to meet
consumer expectations. Its consumers expect Boots to be managing
sustainability as part of “doing the right thing,” and Boots has found
that consumers want to be able to buy products that are doing
something positive for the planet.
What media does Boots use?
•
Boots introduced two carbon footprint reduced Botanics shampoos using
point of purchase posters and displays. Boots finds posters and displays
allow more flexibility than on-product/packaging carbon footprint labels
because the message can be more easily changed based on consumer
Boots believes that corporate responsibility “is
the key to being an innovative forward
thinking and healthy company
company”. For 60 years,
years
Boots has strived to imbed sustainability into
its business and recently has focused on
reducing its carbon footprint throughout its
chain of influence.
Boots has focused communications about
sustainability as its consumers expect it to be
managing sustainability as part of “doing the
right thing”.
www.boots.com
WHY? - Brand
and
Consumer
Expectations
HOW? Carbon Label
on Posters and
Displays
feedback, or more easily
y tailored to different audiences.
•
Some in-store posters call on consumers to take action and use cold water
for hair washing in order to reduce the high carbon emissions associated
with the products’ use. Posters also incent consumers that this approach
will help them save money through reduced energy bills.
•
Boots also uses banners throughout their retail space to inform consumers
of the company’s achievements and commitment to carbon reduction.
5
CASE STUDY
Boots has been working to imbed sustainability within its business for
over 60 years. In response to
market research indicating that
consumers acknowledge climate change as an important problem, Boots
began working with the
Carbon Trust
to develop a program to
reduce its direct carbon dioxide emissions
emissions. The initial focus was to
reduce the carbon content of two Botanics shampoos, but Boots is
applying lessons learned about carbon management across its 30,000
products and value chain.
●
As a result of carbon management
activities,
ti iti
B
Boots
t h
has reduced
d
d its
it carbon
b
emissions
i i
by
b more than
th
10,000 tonnes.
more than
Additionally, Boots estimates that it could save
£1 million through cost savings associated with its
reduction activities.
activities
● Boots takes a straightforward approach to
sustainability messaging, showing their percentage carbon footprint
reduction and providing
specific actions
the consumer can take to
reduce their carbon footprint during product use. Boots does not
attempt
tt
t tto explain
l i to
t the
th consumer how
h
it has
h reduced
d
d its
it carbon
b
footprint, but keeps the message simple.
● Gaining assurance
that its sustainability-related claims are substantiated through third
parties like the Carbon Trust is important to the credibility of initiatives
and protects Boots from negative media attention which could damage
the brand.
6
Examples of WHAT Canadian Tire
Communicates at Point of Purchase
Product attributes –
Focus on energy & water
conservation, waste reduction,
chemicals
Operational performance –
Communications program is under
development
Product lifecycle –
Ideal temperature for
thermostat setting to conserve
energy
Global & community issues –
JumpStart® program helps kids in
financial need participate in sports
& recreational activities
WHY communicate about sustainability?
•
Canadian Tire builds its point of purchase sustainability communication to deliver on
four primary business objectives: consumer expectations; corporate brand; sales
growth; and consumer loyalty.
•
Over the past three to five years, Canadian Tire has seen a growing interest from the
public and from its consumers in environmentally preferred product options. It
considers meeting these needs critical to its business success.
•
As one of Canada’s most trusted brands,, Canadian Tire aims to build consumers for
life. Its consumers trust that it will do the right thing, and delivering environmentally
preferred products that perform well reinforces that trust.
CASE STUDY
COMPANY PROFILE
Canadian retailer of general
merchandise, offers mix of three
specialty categories – automotive,
sports and leisure and home.
As one of Canada
Canada’s
s most trusted
companies, Canadian Tire integrates
economic, social and environmental
concerns into its values, operations
and business strategy. The
commitment to being a responsible
corporate citizen is part of the
company’s
company
s strategy for long-term
growth.
www.canadiantire.ca
WHY? - Brand and Product
Differentiation
WHAT media does Canadian Tire use?
•
Canadian Tire communicates the sustainable attributes of its products and ways in
which consumers can reduce energy consumption through information printed
directly onto product packaging and through labels such as EcoLogo and Energy
Star. This information is supplemented by product knowledge books which are
books handed out in store that provide details about various products groups (e.g.
fans), coupled with information about energy performance or other environmentally
preferable attributes.
•
It also uses staff training to encourage and to engage consumers about energy
conservation measures and the sustainable attributes of its products.
•
In-store posters and displays communicate about Canadian Tire’s JumpStart
program and its partnership programs with utilities across the country.
HOW? - Canadian Tire
considers
id
product
d t labels
l b l and
d
packaging information to be
an effective sustainability
point of purchase media,
because the consumer takes
the information home.
7
CASE STUDY
● Canadian Tire’s communication program focuses on
product performance first, and details of a product’s
environmental preferability compared to other products,
second. By coupling this information, Canadian Tire helps
As part of its sustainability program
A Greener
change consumer behaviour be assuring them that products
y, Canadian Tire sells over 1200
Tomorrow Starts Today
that are better for the environment, perform as well or better
environmentally preferable products, including household
than standard products.
cleaners, CFL bulbs, lawn care products, and solar panels.
tool used by Canadian Tire is encouraging the consumer to
Blue Planet, its showcase eco-line, provides
consider the impact of individual choices and the potential
consumers with more sustainable options that also help save
benefit of using
g their p
products. An example
p of such
money on utility bills.
● Canadian Tire feels strongly that
product performance must not be compromised in efforts to
make the product more sustainable, as uptake by consumers
will be limited.
● Of primary importance to Canadian Tire’s
communication program is
ensuring the credibility of
the information
communicated to consumers. Canadian
Tire relies strongly on
i d
independent
d t certification
tifi ti
bodies
● A key communication
messaging is:
“If every household in Canada
switched from a 750ml bottle of
traditional cleaner made with
petroleum–based raw materials to
an All-Purpose Cleaner made with
natural ingredients, like our Blue
Planet product, we could save 2500
barrels of oil.”
like EcoLogo and EnergyStar and also reviews other
claims. Information about product claims are available in-store
in case of consumer request.
8
Examples of WHAT M&S Communicates
At Point of Purchase
CASE STUDY
Product
attributes
Focus on fair trade, free
free-range,
range, organics, climate
change & energy
COMPANY PROFILE
Product
lifecycle
Campaign to encourage washing in cold water
(90% of carbon in lifecycle associated with product use)
Leading UK retailer of clothing, home products and
responsibly sourced food.
M&S plans for sustainability at a strategic level.
One of its five key objectives is the integration of
its Plan A (sustainability strategies) into every
aspect of its business so that it grows in a
sustainable way. M&S plans to achieve carbon
neutrality and zero waste to landfill by 2012.
WHY communicate about sustainability?
•
www.marksandspencer.com
M&S communicates about sustainability to build: brand differentiation and in
anticipation of a rapidly changing market place. Less directly, efforts to robustly
understand and communicate sustainability performance has helped reveal operational
WHY? - Brand
efficiencies for M&S.
•
The M&S brand is associated with trust and the idea that when you buy from M&S you
are doing the right thing and getting value for your money.
WHAT media does M&S use?
•
M&S uses labels of external standards such as Forest Stewardship Council (FSC) and Fair
Trade on some of their product packaging and have developed their own supportive
HOW? - Use of
independent labeling
schemes internal
schemes,
labels, posters and
displays.
labeling, e.g. air freight logo to designate products that have travelled by air.
•
Posters and window displays are used to promote the Look Behind the Label Campaign
which promotes the sustainable attributes of M&S products.
•
The use of posters is also strongly linked with communication around product lifecycle
campaigns and partnerships with organizations such as NGOs.
9
CASE STUDY
M&S’
Look Behind the Label
is a communications complement to its Plan A
sustainability program. Focusing on the sustainable attributes of M&S products, it
communicates about issues ranging from climate change, waste reduction, safeguarding of
natural resources,
resources ethical trading and building a healthy nation.
nation
● M&S is committed to
enacting real product sustainability improvements and communicating these to its consumers.
To do this, M&S believes in
starting with operational performance, when
ensuring the validity of its product sustainability claims. M&S uses a four-level assurance
program that includes
audit
external auditing of its sustainability data, internal
of its Plan A governance and managements systems (including supply chain), Plan A
project management
systems and engagement with
external
stakeholders . This helps ensure that the data on which M&S claims are based is
accurate.
● M&S is focusing point of purchase communication on areas where consumer
awareness is high, e.g. fair trade and free range, and where consumers can take action to
improve their environmental and social footprint. M&S also tries to link more sustainable
behaviour with saving money. Consumers have responded positively to M&S efforts in this
area. For example, in its initiative through in-store posters to encourage
recycling
clothing
through OXFAM, consumers who donated clothing were given a £5 voucher to
t
55% off which
hi h were redeemed.
d
d Wh
When consumers were mailed
il d a similar
i il
use att M&S stores,
voucher, the rate of redemption was only 5%., indicating that improved results can be
achieved where the retailer can engage the consumer to take meaningful action.
10
Examples of WHAT MEC Communicates
at Point of Purchase
Product attributes –
Focus on organically grown
cotton, recycled polyester
& PVC-free products,
ethical sourcing
Operational performance –
Use of renewable energy,
environmentally-preferable products,
building sustainability & waste
Product lifecycle –
Encourage the reuse or
recycling of gear
Global & community issues –
Protecting wild places & encouraging
Canadians to play outdoors.
P t
Partnership
hi with
ith NGO aiming
i i
to
t
ensure that 50% of Canada’s wildness
is protected forever
WHY communicate about sustainability?
•
•
MEC communicates about sustainability because its consumers (members)
want to know. Through direct and web-based interactions, consumers
indicate that they are interested in having more information about the
sustainable attributes of MEC’s products so that they can make better
decisions about what products they buy.
The concept of sustainability is also directly connected to MEC’s brand and
core values,
values so communicating with consumers about sustainability is
considered essential to the company.
WHAT media does MEC use?
CASE STUDY
COMPANY PROFILE
Mountain Equipment Co-op (MEC) is Canada's leading
supplier of quality outdoor gear and services. As a cooperative, MEC exists to serve the needs of its
members and builds its products with purpose, people,
and the planet in mind.
One off MEC'
O
MEC's core values
l
is
i integrity
i
i - and
d as a result,
l
it looks for ways to provide products that are
demonstrate integrity in every way - value, quality as
well as environmentally and socially. MEC also works
to reduce the ecological footprint of its operations,
and supports its community be helping to conserve
wild spaces and engaging people in outdoor recreation
www.mec.ca
WHY? - Consumer Expectations, Brand
and Product Differentiation
HOW? - MEC Product Sustainability
Logo, Posters, Displays. Staff
Interactions and Catalogue
•
To communicate about the sustainable attributes of its products, MEC has designed its own product sustainability symbol that is
applied to the product during its manufacture.
manufacture The symbol indicates products that contain organically grown cotton blend (at least
50%) or organically grown cotton (at least 100%), recycled polyester content (at least 50%) or are completely PVC-free.
•
MEC relies strongly on posters and displays to communicate both about its operational performance and its global and community
issue areas. For example, signage throughout the retail space guides consumers on a tour highlighting the stores sustainability
features, and posters can be used to address regional differences related to community issues.
•
A recent edition of the MEC catalogue (available in-store) featured a two-page spread called “The Power of Choice”, highlighting
ways in which MEC and its consumers can make a positive impact on the environment.
•
MEC also uses staff training, prints sustainability messages on purchase receipts and thinks that interactive point of purchase
communication such as being able to cross check the sustainability information of products using personal handheld technology is
not far off.
11
CASE STUDY
In fall of 2007, MEC carried over
342 products with an internally
developed sustainability symbol
in order to help consumers differentiate
products with more sustainable attributes. Currently,
p
y, the symbol
y
is applied
pp
only
y to MEC
brand products, but efforts are underway to include other products with similar attributes.
●
Of primary importance to the MEC sustainability communication strategy is to
inspire
its consumers and to make them feel as though they are part of something exciting. As a
result, MEC feels that the tone of its messaging is crucial and strives to avoid preaching,
but rather develops
action-oriented messaging.
MEC also believes the
messaging must be simple enough to be quickly understood and absorbed at point of
purchase
purchase,
while maintaining the integrity of the sustainability
story and the complexities of the associated issues. ●
It is important to MEC to
communicate both positive and negative aspects of its performance. This is the area
where MEC feels the risk in sustainability communications lies for most companies.
●
Another associated concern for those companies communicating specifically about a line of products within a larger
retail context, is the risk of the “halo
products outside the line.
●
effect”, i.e. the transference by consumers of sustainable attributes onto
MEC prefers to keep its point of purchase communication messaging simple and
supplements its point of purchase efforts with in-depth communications through its
website and associated blogs,
which are used as interactive tool to solicit and reply to member inquiries and engage members in MEC’s sustainability
future. One standout example is the Director for Ethical Sourcing’s blog, which receives over 150 hits a day
● In terms
of assurance,
assurance MEC requires factories that manufacture MEC
MEC-brand
brand products to sign a Vendor Code of Conduct which
outlines expectations for health, safety and human rights; conducts an external audit of its factories; uses a stakeholder
engagement panel to review and ensure clarify of performance data; and relies on an internal director of product
integrity and internal processes to assure its sustainability label.
12
Examples of WHATP&G communicates at
Point of Purchase
Product attributes –
Focus on safety, chemicals,
recycled
e
led content,
ontent
biodegradable
Product lifecycle –
Encourage washing in cold water,
reducing
ed ing quantities,
q ntitie saving
ing money
mone
WHY communicate about sustainability?
•
P&G communicates about sustainability because consumers are
increasingly concerned about the content and disposal consequences
of the products they use.
•
Communicating about sustainability helps drive sustainable behaviour
and increases sales by letting the consumer know why a particular
product is better for the environment or personal health, while still
providing outstanding performance and saving the consumer money.
•
Linking sustainability communication with communication about
product performance is important as it helps dispel the myth that
products that are better for the environment don’t perform as well.
P&G understands that the consumer is not willing to sacrifice
performance.
WHAT media does P&G use?
CASE STUDY
COMPANY PROFILE
Multinational manufacturer of products, including
personal care, household cleaning, laundry detergents,
prescription drugs and disposable nappies.
P&G is designed to innovate sustainably so that it can
improve the quality of life for the world’s consumers —
now and for generations to come. This idea is at the
heart of P&G’s purpose.
www.pg.com
WHY? Consumer
Expectations
and Brand
Bounty
Select-A-Size
HOW? –
Labeling and
Displays
•
As a marketer who relies on retailers to sell its products, P&G is somewhat limited in
the types of media it can use to communicate about sustainability at point of
purchase. Therefore, the primary communication method used by P&G is product
labeling, the media over which it has the largest degree of control.
•
As a secondary means of communication, P&G provides retailers with “shelf talkers”,
di l
displays
that
th t can be
b affixed
ffi d to
t the
th edge
d
off shelving.
h l i
•
P&G communicates only limited sustainability information at point of purchase,
preferring to reduce the messaging to core sustainability and performance attributes,
relying on the P&G website to provide in-depth information to consumers who are
interested in learning more.
13
CASE STUDY
● A lifecycle analysis
maps sustainability issues against value chain activities,
from sourcing through consumer disposal, and provides a quantitative analysis of the
g
impacts
p
from a sustainability
y perspective.
p
p
P&G conducted a lifecycle
y
analysis
y
largest
of all its products and determined the largest impact to be the energy used by
consumers washing their clothes. Given this information, P&G decided to develop
Tide Cold Water and Ariel Cool Clean.
● Product labeling and displays
promote the energy and associated cost savings associated with cold water washing,
washing
and also emphasize improved product performance.
communication with two key challenges in mind:
● P&G designs its sustainability
excessive noise at point
of purchase and the prevalence of misconceptions around
environmental claims.
As such, P&G keeps its messaging simple and to the
point, and does not burden the consumer with claims that do not provide real points
of differentiation, e.g. though P&G does not use phosphates in its products, this fact
is not prominently displayed because phosphates have not been used in laundry
detergents in Canada in over a decade.
●
The accuracy and clarity of its
sustainability claims are extremely important to P&G, who utilize a
advisory
d i
panell
stakeholder
composed of representatives from non-governmental,
regulatory and consumer organizations, as well as its internal audit and legal team to
verify corporate performance and language of claims. ● P&G looks forward to the
enforcement of the
Competition Bureau’s standards for
environmental claims in the Summer of 2009, as it will help level the
playing field, differentiate products and brands, and help the consumer better
navigate the realm of sustainability product offerings.
14
Examples of WHAT Timberland
Communicates at Point of Purchase
Product attributes –
Focus on energy,
chemicals, eco-conscious
material, recycled content
Operational
p
p
performance –
Focus on communicating facility use of
renewable energy, number of tress
planted
WHY communicate about sustainability?
• The value at the core of all Timberland’s CSR decisions is
transparency. It believes that there is intrinsic value in keeping
consumers informed about Timberland’s footprint and what it is
doing to improve its performance and its products. This
transparency promotes consumer loyalty and enhances the value of
the brand.
WHAT media does Timberland use?
CASE STUDY
COMPANY PROFILE
A US manufacturer, marketer and retailer of
rugged, outdoor-tested, environmentally conscious
gear for men, women and kids.
A commitment to “making it better” provides the
foundation for everything Timberland does – from
product development to partnerships that create
positive, sustainable impact. Its approach to
building and sustaining strong communities
includes three primary strategies: civic
engagement, environmental stewardship and
global human rights.
www.timberland.com
WHY? – Brand
• Timberland produced the industry-first
industry first nutritional label on all Timberland-branded
Timberland branded
footwear boxes communicating company sustainability information. They also
HOW? - Nutritional and
use a variety of proprietary icons to communicate product-specific information
Green Index Labeling
(see below).
• Timberland recently developed a green index label that will be rolled out across its
product line and will be printed directly on product packaging rating the product’s environmental impact.
• Timberland
Ti b l d packages
k
products
d t iin 100% post-consumer
t
recycled
l d content
t t boxes,
b
and
d includes
i l d this
thi information
i f
ti
on its
it
nutritional label.
• Timberland also communicates about its EarthKeepers line of environmentally conscious products through regionally
customized window displays.
15
CASE STUDY
Timberland’s
Nutritional Label is a communications tool that has served to differentiate
Timberland from its competition. The nutritional label communicates to consumers information
on percentage use of renewable energy at Timberland facilities, the percentage of materials that
are PVC free and made from eco-conscious materials; i.e. renewable, organic, recycled, and the
number of trees plated in a given year.
●
In response to
feedback from
consumers, Timberland recently developed a complementary Green Index
Rating
providing additional, product information. The label, currently on about 2% of
Timberland products, provides a relative impact rating of between 0 and 10. Using this rating,
Timberland consumers are able to make the choice to purchase a product with a lower
environmental impact.
● For Timberland, one of the biggest risks regarding sustainability
communications is communicating something that is either untrue or unclear. Therefore, as it
expands communications efforts, it also increases assurance systems, including
audit
and
stakeholder engagement
internal
activities. Timberland uses focus groups to
test reactions to and interpretations of its product labels.
● Maintaining the balance between
communications simple enough for consumers to understand and absorb in a brief point of
purchase exchange, and being true to the complexity of the issues associated with product
development, is a key challenge. One strategy Timberland uses is to provide in-depth
supportive information on its website.
●
Due to its innovative nature, the nutritional label has
public relations value for Timberland through media interviews and associated write-ups in
global publications , it has enhanced the company’s
brand recognition
and value.
16