growing green (group 7)

7/30/2019 Growing Green (Group 7)

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Growing

GreenThree smartpaths to

developingsustainableproducts-by Gregory Unruhand RichardEttensonPresented by-

Group 7


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Cloroxs Brita water filter

Companies increasing their focus on

producing environmentally friendly products.

Sustainability as a revenue-driver and as a

competitive advantage.

Three strategies that can be

used by companies to align

their green goals with theircapabilities.

1. Accentuate

2. Acquire

3. Architect


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1. Accentuate Involves highlighting the green attributes

of the current products.

E.g. Church & Dwights Arm & Hammerbaking soda.

Repositioning of Brita water filter againstbottled water.

Educate consumers and communicate

about Britas green characteristics.

FilterForGood website.

No greenwashing.


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Companies lack a green heritage in theirportfolio of products.

BPs Beyond Petroleum rebrandingcampaign.

Strategy must align with customersperceptions.


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Brita filters were not positioned as greenand produced by a green company.

Collaboration with Preserve and WholeFoods Market.

Enhanced credibility


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2. Acquire If an organization has no brand for

accentuation then it can opt foracquiring someone elses green brand.

E.g.

The Body Shop by LOreal

Ben and Jerrys by Unilever (Hostile Buy-out)

Toms of Maine by Colgate-Palmolive

Problem of Culture Clash and Strategic Fit.[Stonyfield Farm by Groupe Danone]


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Challenges of Green

Acquisitions Scrutiny by the green community

New parents green credentials

Accusations of deliberately destroying a

green competitor.

o Coca-Colas acquisition of Planet Java and

Mad River Traders


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Appeal of Successful Green

Brands Loyal customer base

Specialized knowledge on eco-friendlyinnovation and manufacturing

o Cloroxs acquisition of Burts Bees


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3. Architect

Does the company have a history of/ anaffinity towards innovation?

Could be slower than previous paths

But helps in building valuable

competencies!

The Toyota way

Green Works Cleaning ProductsClorox

R & D needs its independence

Result - Established the benchmark definition andbest practices for a natural cleaning productand proceeded to design a line of offerings thatwould deliver the efficacy customers demand

Accumulation of a range of new competencies


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Making green growth happen The strategy must be aligned with the

companys objectives, goals & policies

Before going green managers must ask

& evaluate

1. If the plan is feasible ?

2. Is it desirable ?

3. How would it be implemented?


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Feasibility Taking stock of the assets through a duo

dimensional approach

1. Greenable attributes of existing products and

brands, and organizational green product &

brand development capabilities

Requires a careful review of opportunities to promote

brands green benefits

2. Appraising the companys green resources andcapabilities through

Reviewing process & priorities for innovation


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Desirability Assessing the strategic fit of each option with the

company's objectives & resources they can bring to

bear on the green initiatives

Decide which strategy fits best & where - Acquiring v/s Accentuation v/s Architecting

Must consider

1. Speed to market & investments,

2. Reputation &

3. Competencies that the initiative will require


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Implementation Acting on all factors that affect successful execution

Aligning green strategy with their existing product

portfolio

Devoting resources and capabilities needed to

achieve their strategic goals

Strategy must satisfy customer's expectation & should

take advantage of competitors green weakness

Should address the red flag issues that couldundermine implementation


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THANK YOU

growing green (group 7)

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