Green Marketing: Ecolabel

”Training: Development of sustainable consumption and production in Ukraine"

Kyiv – April 24, 2013

lichtl 2013

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• An ecolabel according to ISO standard (International organization for Standardization) is a label that identifies environmentally preferable products or services within a specific category

• ISO 14024 type I label are:- voluntary, market based programs- the multiple criteria set based on life cycle considerations- awarded by an impartial third party

• Standardization became necessary because of the growing market on eco-labels, claims and (self-)declarations

Introduction to Ecolabelling - International Standards

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Blue Angel – The world’s first ecolabel

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What is the Blue Angel‘s Message?

Blue Angel products have a better environmental performance, better health protection and are superior in use and handling compared to similar products.

Tradition: Established in 1978 - the first ecolabel worldwide

ISO 14024 Type I Label:• A voluntary, market based programs• the multiple criteria set based on life

cycle considerations• awarded by an impartial third party

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Blue Angel Statistics

13.000 Products and Services

1.260 Companies

113 Product categories

From surveys, we know that 76 percent of the population recognises the Blue Angel. 39 percent of consumers pay attention to the eco-label when making purchases. *

*Source: * study “Environmental Awareness 2010”

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Blue Angel – credible and competent thanks to….

1. The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety – is the owner of the label and regularly informs the public of the decisions of the Environmental Label Jury.

2. The Federal Environment Agency – develops the technical criteria for the Basic Award Criteria for the Blue Angel and acts as the office of the Environmental Label Jury.

3. The Environmental Label Jury – is an independent decision-making body composed of representatives from environmental and consumer associations, trade unions, industry, trade, crafts, local authorities, science, media, churches and federal states.

4. The RAL gGmbH – organises and holds the expert hearings. It is also responsible for reviewing applications and awarding the eco-label on the basis of the existing award criteria for products and services.

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Environmental Label Jury

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Agenda

1. Brand and sustainability communications

2. An ecolabel as a marketing tool

3. Example: Blue Angel communications

4. Learnings and conclusions

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1. Brand and

sustainability communications

An ecolabel is a brand

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Goals of marketing communications

1. Acceptance by end-users (consumers, public procurement)

2. Acceptance by marketing & sales leaders in companies that the eco-label will be an effective marketing & sales tool (“Eco-label sells”)

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Brand communication

What is a brand?

- typically: corporate or product brand

- wider sense: collective brand (eco label)

- brand image: clear unique profile

- trust -> orientation

- social: prestige and symbol for lifestyle

- need: awareness

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The relevance of brands

„How important is a brand for the success of your company?“

0% 3% 2% 2%

16%

25%

53%

0% 1% 2% 4%9%

21%

62%

0%

20%

40%

60%

1 2 3 4 5 6 7

1999 (n=128) 2005 (n=95)

PWC/GfK/Sattler/Markenverband (2006): Praxis von Markenbewertung und Markenmanagement ..., Frankfurt.

Ratingskala mit 1 = not important 7 = very important

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The relevance of brands

Chernatony/ McDonald (1992): Creating Powerful Brands, Oxford, S. 9..

51%

44%

5%

Blindtest

...tastes better

...tastes better don‘t know

23%

65%

12%

Open Test

...tastes better

...tastes better don‘t know

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The relevance of brands

Meckes/Gehring 2006 unter Bezug auf Simon-Kucher & Partners

VW Sharan

Price: 26.500 €Sales: 22.171

Price: 24.350 €Sales: 13.368

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Sustainability communication

The difference

- Moral claims: Credibility

- Different wording and symbols

- Different tools: advertising, POS, PR?

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Trend: the green consumer

• High sensitivity on health issues = environmental pollution

• Interest and knowledge in sustainable issues like climate change, water pollution, social standards, etc.

• Growing transparency: Active NGOs and web 2.0 information

• Critical consumption attitudes

• Higher income and education, urban

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Green Public Procurement - GPP

• Eco-label has become an important orientation aid for environmentally procurement of the public authorities in Germany.

• They often use eco-label criteria for calling for bids.

• Criteria of type I ecolabel as the “Blue Angel” provide a scientifically well founded and legally valid basis for Green Public Procurement. European procurement law allows expressly the use of ecolabel criteria (Art. 23 para. 6 Directive 2004/18/EC).

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2. An ecolabel as a marketing tool

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Benefits for companies- To demonstrate the company‘s commitment on environmental issues- To communicate the good environmental performance of their products - A market tool supported by the labeling scheme partners

Benefits for consumers- Easy way of recognizing environmentally friendly products and services- A third part proved information they can trust- No need to deal with every single detail - A guideline and orientation in everyday life

Benefits of Ecolabelling

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Perspective of consumers

- Information efficiency: Radical reduction of information versus information overkill

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Perspective of consumers

Little interested consumers

Interested consumers

Eco-shopper

Document of Criteria

Document of Criteria

Plain Logo Expert-Knowhow

Target group: Who do you want to talk to?

Online-Info, Fact sheets

POS/Packaging-Info

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Perspective of consumers

Credibility & trust in sustainable consumption

- Ranking of credible eco-players1. NGOs

2. State institutions

3. Media

4. Industry/retailers

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Perspective of industry

Credibility & trust- Ranking of credible eco-players

1. NGOs

2. State institutions

3. Media

4. Industry/retailers

- Industry is gaining credibility for its green marketing- Problem: “collective brand” – limited differentiation

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Perspective of industry

Entry into new market segments

- Growing segment of “green consumers”

- Public procurement

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Additional willingness-to-pay for Blue Angel toilet paper

0% mehr 5% mehr 10% mehr

15% mehr

20% mehr

25% mehr

30% mehr

35% mehr

40% mehr

45% mehr

50% mehr

mehr als 50% mehr

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

42%

27%

18%

4% 5%

1%2%

1% 0% 0%1%

0%

Percentage of interviewees who are willing to pay x% more for toilet paper with the Blue Angel

Gewichtete ø MZB: 6,45%

Empirical study by Prof. Dr. H. Sattler, University of Hamburg, 2010

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3. Examples:

How ecolabels are promoted

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Instruments to promote a label

Scenario

1.Promoted by the competent body of the labelling scheme

2.Promoted by the license holder

3.Marketing cooperation of industry/retail and competent body

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Instruments to promote a label

Scenario

1.Promoted by the competent body

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Website

www.blauer-engel.de

www.blauer-engel-produktwelt.de

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Brochures

Weitere Broschüren in Bearbeitung

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Media relations

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Style: Emotional approach

Little interested consumers

Interested consumers

Eco-shopper

Document of Criteria

Document of Criteria

Plain Logo Expert-Knowhow

Target group: Who do do you want to talk

to?

Information & facts approach

Emotional

approach

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Media event

• Internationale Funkausstellung, 5. September 2010, Berlin

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Promotion

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Fair

Goodgoods 2011 in Hamburg

IFA 2011 in Berlin

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Teaching material

Infos und Download unter www.blauer-engel.de/schule

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Social Media

www.twitter.com/UmweltEngelwww.facebook.com/BlauerEngel

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Instruments to promote a label

Scenario

2.Promoted by the license holder

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Packaging

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Product advertising

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Newspaper supplements

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Internet shop, website

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Internet shop, website

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POS communication

At stationary sales

Shelf stoppers

Displays

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Instruments to promote a label

Scenario

3. Marketing cooperation of industry/retail and competent body

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Press relations - VoIP

Siemens – First holder of VoIP phones

Press event at Leipzig factory including factory tour at March 24, 2011

Participants:

• Staatssekretärin Ursula Heinen-Esser (BMU)

• Dr. Mathias Böttger (Jury Umweltzeichen)

• Vera Meyer (Siemens Enterprise Communications GmbH)

• Jörg Friedrich (Siemens Enterprise Communications Manufacturing GmbH)

• Jürgen Brieskorn (Leiter CTO Office Siemens Enterprise Communications)

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Press relations - VoIP

Media clippings VoIP

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Media relations - IFA

Philips IFA (presentation of certificate)

Press event at Philips booth at IFA, 8. September 2011

Participants

• Dr. Susanne Lottermoser, BMU

• John Olsen, Leiter TVP/Philips für Deutschland, Österreich und Schweiz

• Susanne Heutling, UBA

• Andreas Halatsch, UBA

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Press relations - IFA

Media clippings IFA

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Create platforms

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Create platforms

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Emotions: The Blue Sofa

The world‘s longest virtual blue sofa

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Blue Angel‘s 30th birthday

30 years of Blue Angel

Aktionstag in Kiel

Umweltminister Christian von

Boetticher, Oberbürgermeisterin

Angelika Volquartz, Geschäftsführer Steinbeis Papier

Glückstadt Michael Söffge

Aktionstag in Tübingen

Oberbürgermeister Boris Palmer,

Marketing wodtke GmbH Ulrich Seidel

Aktionstag Berlin

Senatorin Katrin Lompscher,

Herlitz PBS AG Silke Ramelow,

HDE-Geschäftsführer Stefan Genth,

Stellvertretender Vorsitzender vzbv Uwe

Hüser

Aktionstag in Köln

Bürgermeisterin Elfi Scho-

Antwerpes,REWE-Group

Vorstand Manfred Esser

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Conclusions

1. Competent Body must do the groundwork: image & positioning, basic information

2. No awareness building due to low budget.

3. Key role of industry/retail: building awareness based on large media budgets

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Strategy

Competent

Body

License

holder / brand owner

Positioning &

Basic information

S2B-communication

The campaign:

Credibility

(involve NGOs & state bodies)

Roles & responsibilities

Application

Product advertising including the eco-label

The campaign:

Media power (awareness)

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Agenda

8. Learning and conclusions

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Learnings

- Adapt strategies and instruments of brand communications

- Credibility is a major challenge

- Emotional approach to get more awareness

- Marketing cooperations with license holders to raise awareness

- Networking – create platforms to raise awareness

- Apply strategic acquisition of license holders

- Green consumer segments will grow

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Dr. Martin LichtlRheingaustraße 465719 Hofheim am TaunusTel +49 6192 975 92- 82Fax +49 6192 975 92- 99Email lichtl@lichtl.com