green marketing june 2010

Green Marketing

June 2010

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Team AssignmentYou are the Marketing VP for a firm (your choice) that is committed to Sustainable Development, has implemented many Sustainable Initiatives, does Sustainability Reporting, etc.

Your CEO has asked you to come to Executive Team meeting with two sets of recommendations as part of a Green Marketing Plan:

– Which Market Segments should your firm target?

– What are the Marketing Messages for the targeted segments?

After the break, each team will have 15 minutes to prepare and then 15 minutes to present their recommendations.

2

SOURCES

“An Introduction To Green Marketing” by Polonsky, Michael Jay, University of Newcastle, Australia, 1994

Videos:– The Effects of Green Marketing (4 minutes)– Six Sins of Green Washing (6 minutes)

“It’s Not Easy Being Green……Or, Is It?” by Rockbridge Associates, US, 2008

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Green or Environmental Marketing

Consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. [Polonsky 1994b, 2]

Incorporates a broad range of activities, including:– product modification/innovation

– changes to the production process,

– packaging changes,

– as well as modifying advertising.

4

Green or Environmental Marketing

Looks at how marketing activities utilize limited natural resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives.

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WHY GREEN MARKETING?

1. Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives [Keller 1987, Shearer 1990];

2. Organizations believe they have a moral obligation to be more socially responsible [Davis 1992,Freeman and Liedtka 1991, Keller 1987, McIntosh 1990, Shearer 1990];

3. Governmental bodies are forcing firms to become more responsible [NAAG 1990];

4. Competitors' environmental activities pressure firms to change their environmental marketing activities [NAAG 1990]; and

5. Cost factors associated with waste disposal, or reductions in energy and material usage forces firms to modify their behavior [Azzone and Manzini 1994].

6

OPPORTUNITIES

A 1994 study in Australia found that 84.6% of the sample believed all individuals had a responsibility to care for the environment.

A further 80% of this sample indicated that they had modified their behavior, including their purchasing behavior, due to environmental reasons [EPA-NSW 1994].

As demands change, many firms see these changes as an opportunity to be exploited.

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US Federal Trade CommissionFirms using green marketing must ensure that their activities are not misleading to consumers or industry, and do not breach any of the regulations or laws dealing with environmental marketing.

Green marketing claims must;Clearly state environmental benefits;Explain environmental characteristics;Explain how benefits are achieved;Ensure comparative differences are justified;Ensure negative factors are taken into consideration; andOnly use meaningful terms and pictures.

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Videos

The Effects of Green Marketing: Consumer Trends Drive Profit (4:13 minutes)www.youtube.com/watch?v=xj1TqhJLaQI&feature=related

Six Sins of Green Washing (6 minutes) www.youtube.com/watch?v=Fnh1Y06DGCs&feature=related

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It’s Not Easy Being Green……Or, Is It?

Presented by:Charles L. Colby

Joe BatesJoe Taliuaga

Rockbridge Associates, Inc.

17th Annual Frontiers in Service ConferenceOctober 3, 2008

For more information, contact:Joe Bates, VP703-757-5213 ext. [email protected]

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A Little About Us…

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Rockbridge Overview

Full Service Market Research Consultancy – Founded in 1992, based in Washington, DC area

Our Practice Areas– Product Optimization & Concept Testing– Customer Satisfaction and Retention – Positioning and Communications Research– Market Segmentation– Website Usability

Rockbridge specializes in

services, technologyand media

sectors

Proud Member ofCorporate Partner

Center for Excellence in Service

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Rockbridge’s National Technology Readiness Survey (NTRS) has gathered consumers’ opinions and usage of technology since 1999The study is co-sponsored by the Center for Excellence in Service, R. H. Smith School of Business, University of Maryland

Methodology:– Representative survey of U.S. adults (18+ years)– 1025 consumers surveyed in Fall 2007

• 500 by telephone (random-digit-dialing)• 525 by a representative web panel

– Results weighted by demographics and by type of internet/phone access

Background & Methodology

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Why Does Green Matter?

15Source: National Technology Readiness Study, Rockbridge Associates, December 2007

I want to protect the environment for the benefit of

future generations

I want to protect the environment for the benefit of

future generations

The Earth belongs to humanity to do with as it pleases

The Earth belongs to humanity to do with as it pleases

Americans Believe in Environmental Stewardship

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Will The Green Trend Last?

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Chances Are Good

California has been leading the way in enacting green laws:

• Mandated recycling of TVs and monitors

• Requiring retailers to take back plastic bags

• Almost outlawed incandescent light bulbs

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Green Sentiment Runs High

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Is There An Environment “Problem”?

% Who Agree With Statement

69%

85%

The evidence of global warmingis real

More needs to be done to curbair and water pollution in our

country

Source: National Technology Readiness Study, Rockbridge Associates, December 2007

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Can Something Be Done?

Consumers believe collective action will work

And regulation will not hurt


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Can Technology Help?

There is strong faith in technology

Green tech helps the economy…

The internet gives us a medium to work together

…while more efficient products and services help the wallet


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What is the Potential for Green Products and Services?

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Service Technology EmpowersConsumers to Be Green


34%

44%

53%

52%

52%

58%

21%

31%

33%

42%

46%

51%

58%73%

Power company controlled airconditioner

Telecommute

Switch to electricity based onclean/renewable resources

Replace paper utility statement withelectronic

Access online pub instead of printversion

Replace paper financial statementswith electronic

Recycle/refurbish old computer % Who Have Done% Maximum Potential Incidence

Opportunities for financial

services, utilities, IT firms,

publishers

There is an Emerging Market for Green Products

39%

41%

43%

52%

60%

64%

66%

80%

10%

10%

20%

29%

33%

37%

45%

69%

Eco-Friendly Home

Weather station

High MPG vehicle

Home waterpurification system

High efficiencycooling

High efficiencyheating

Programmablethermostat

Energy savinglighting

% Who Have Own% Maximum Potential Incidence

Many include making homes and transportation greener

17%

23%

27%

29%

32%

34%

34%

35%

4%

3%

4%

7%

3%

8%

3%

4%

Green financialinvestments

Remote homesystem control

Bio-poweredvehicle

Trashcompactor

Solar waterheater

Natural gas/electric vehicle

Solar homeheating

Hybrid fuelvehicle

Many Energy-Related Products and Services Have Potential for Long Range Growth

% Who Own% Maximum

A third of consumers are interested (or already own) an alternative fuel vehicle and solar heating systems

Potential is Unrealized

Where is the Services Opportunity?

We estimate $104 Billion annual market for green products

Opportunities:– Green mortgages– Green home equity loan– Green vehicle financing– Partnerships with energy companies– Securities backed by these investments

Fidelity’s strategy in this area?

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Many Are Turning to the Web for Help

4%

5%

8%

16%

17%

17%

18%

21%

23%

24%

27%

Researched car pools

Donated to political campaign

Environment forums

Obtained appliance energy ratings

Visited co website for green views

Got recycling info

Researched candidates' enviro views

Visited site of environmental org

Looked up green tips for home

Researched public transit options

Got gas mileage info


% Who Have Done It In Past 12 Months

Opportunities for online content to help consumers

find green solutions and network with other green-

minded consumers

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Segmenting the Green Market

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Key Questions

Who is driving the green movement?

What is the role of innovativeness (if any) in driving the movement?

?

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A “Green Segmentation” of the Market

1 out of 10 adults – “Green Tech Leaders” – are influencers– They also embrace technology and believe in its ability to solve problems

Another 2 out of 10 – “Green Tech Followers” – are deeply committed to green issues and view technology as playing a role


10%

31%

12%

22%

7%

18%

Green Tech Leaders

Green Tech Followers

Tech Savvy Green Sympathizers

Enviro-Friendly Skeptics

Naïve Consumers

Anti-Greens

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Commitment

to GreenInfluence

Absence of Skepticism

Love of Tech

Green Tech Leaders High High High High

Green Tech Followers High Low High Medium

Tech-Savvy Sympathizers Medium Low Medium High

Enviro-Friendly Skeptics High Low Skeptical Low

Naïve Consumers Medium Low Medium Low

Anti-Greens Low Low Skeptical Medium

Psychographic Profile of 6 Segments

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Commitment: “I Encourage Friends / Family to Be Environmentally Friendly”



6%

41%

88%

50%

89%

98%

Anti-Greens

Naïve Consumers


Tech Savvy GreenSympathizers


Green Tech Leaders

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Influence: “Others Come to Me For Adviceon Being Green”



0%

2%

22%

9%

26%

50%

Anti-Greens

Naïve Consumers




Green Tech Leaders

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Green Tech Leaders influence others through social media

Green Tech Leaders influence others through social media

Anti-Greens also use social media, and may influence others on their views

Anti-Greens also use social media, and may influence others on their views

Influence: The Use of Social Media


53%

20%

21%

35%

17%

50%

Anti-Greens

Naïve Consumers




Green Tech Leaders

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Skepticism: “There Is Nothing Anyone Can DoTo Prevent Global Warming”



63%

17%

46%

25%

2%

7%

Anti-Greens

Naïve Consumers




Green Tech Leaders

36

Love of Tech: “Other People Come to Me for Advice on New Technology”


28%

1%

31%

58%

21%

96%

Anti-Greens

Naïve Consumers




Green Tech Leaders

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Profile of Green Segments

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Green Tech Leaders – 10% of Market

How They Think Who They Are

Important to be green Early Adopters Technology can save us Green gadgets are cool Like trying new green tech Do research and influence

others on green products Like doing business with

green companies Green is good for the wallet

Younger More likely to have kids Tech professions Higher incidence of

• work PC use• home networks• high-speed home Internet• access Internet on the go

Higher web “presence” and subscriptions to online music and video

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Green Tech Followers – 18% of Market

How They Think Who They Are

Adamant about protecting the environment

People must reduce their impact on the environment

Green gadgets are fun Like trying new green

technologies Research green products Like dealing with green cos. Green is good for the wallet

Older Female Higher home

ownership rates Lower incidence of

cell-only households Spend fewer hours

online Lower web

“presence”

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Other Relevant Green Segments

Tech-Savvy Green Sympathizers (31%)

Care about the environment Early adopters of

technology NOT green activists or

boosters, but sympathetic Like doing business with

green companies Green is good for the wallet Skew younger, male, heavy

users of technology

Enviro-Friendly

Skeptics (12%) Adamant about being green Technophobic Technology may worsen our

problems, not sure what to do Want proven technologies to

help the environment Research green products Like dealing with green cos. Green is good for the wallet Skew older, less techy

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Segments Where Green is Less Relevant

Naïve Consumers (22%) Hold “socially acceptable”

opinions, but no urge to act More concerned with

getting by on a day to day basis than being green

Many are technophobic Low interest/awareness of

green tech or products Will avoid using green

technologies until they are proven

Skew female, less techy

Anti-Greens (7%) Not committed to

environmental issues Don’t care about green

technologies or products More concerned with getting

by on a day to day basis Environmental activists are

irresponsible; the Earth belongs to humanity

Oppose regulation Skew younger

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Deploying a GreenServices Marketing Strategy

Will Green Marketing Help a Company?

Yes! …but they have to be sincere!



68%72%

I like to do business withcompanies that are

environmentally responsible

I resent companies that say theycare about the environment but

don't mean it

78%

60%63%

31%35%

56%

85%

70%65%

40%45%

56%

Green TechLeaders

Green TechFollowers

Tech-SavvyGreen

Sympathizers

Enviro-FriendlySkeptics

NaïveConsumers

Anti-Greens

Use NowPotential

Example: Online Financial Statements

Example: Green Investments

13%

6%

2%0%

2%3%

32%33%

12%

5%

15%

9%

Green TechLeaders

Green TechFollowers

Tech-SavvyGreen

Sympathizers

Enviro-FriendlySkeptics

NaïveConsumers

Anti-Greens

Own NowPotential

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To Sum It Up…

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To Sum It Up…

Consumers care about the environment, even if some are only joining the bandwagon to be PC

Embracing technology and being green are not mutually exclusive ideologies

When marketing green products and services, focus on the following messages:– Your company cares about the environment (and you have to back this up with

actions that show it)– If we all work together, we can have an impact– Your product is environmentally conscious– Buying your product will not only help the environment, it is good for the

consumers’ wallets

Target Green Tech Leaders with your message– They will evangelize on your behalf– Social media is key

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Questions?

green marketing june 2010

Documents

green marketing plan

green marketing claims

green laws

green sentiment

green matter

green marketingjune

green trend

marketing vp