Green marketing

Green marketing is marketing with a social or environmental component. Early

attempts at green marketing were often insincere, superficial and confusing for consumers. Greenwashing has been a commercial failure. It tarnishes brand reputation, increases public cynicism and has spawned stronger regulations including advertising guidelines.

Now corporations are adopting sustainable purposes in order to guide all of their activities, bonding with today’s consumers and growing their commercial success. Without consumer engagement, corporate sustainability programmes fail.

GlobeScan, and others, have identified the most receptive consumers – and they are not environmental or social justice Advocates. Based on advanced statistical modelling across multiple surveys, our global research reveals four consumer segments on the sustainability–materialism spectrum, from highly committed Advocates (21%), to style and social status seeking Aspirationals (38%), to price- and performance-minded Practicals (25%), and less engaged Indifferents (16%). Aspirationals are young, urban, highly connected and more likely to be female, materialistic,

Consumer engagement is now the primary focus of green marketing – harnessing the innate CSR values that most consumers have and creatively engaging them to actively purchase from brands and companies that have differentiated, positive CSR performance, write William Ratcliffe of the University of Waterloo and Chris Coulter of GlobeScan

style-seeking and engaged with brands. They are also among the most likely, with Advocates, to be concerned and engaged in social and environmental issues. Aspirationals are the most important segment open to becoming engaged in

sustainable consumption, not only because of their overall size (and presence in developing markets) but also because they want to purchase with a purpose. Aspirationals are a marketer’s dream: young, urban, female, wired, tribal and culturally

influential. The Aspirationals consumer segmentation was developed by BBMG and GlobeScan in 2012 and is now being tracked annually across 20 countries. Advocates are very concerned about sustainability issues and have little trust in businesses as providers of solutions to social and environmental challenges. They are motivated by a belief that sustainable consumption and social action are ‘the right thing to do’. They are informed, sceptical and vocal, so questionable claims made to this group can have severe ramifications. Practicals are laggards in purchasing more sustainable products, and they are driven by proven performance and reduced price points. Indifferents are much more likely to be male and young. They are the least likely to engage in the sustainable economy and the least likely of any segment to be the first to try new things or be a source of recommendations to others. And, true to their name, Indifferents are more likely to say ‘there is very little individuals can do’ to make a positive difference in society and on the planet.

TELL, TEACH AND INVOLVE

How have IKEA, Patagonia, Unilever, Starbucks, Whole

Foods, Marks & Spencer and TOMS succeeded in this area, while others have failed or are, at least, struggling? They are using best practices that GlobeScan has organised within a time-tested framework.

All three components (Figure 1) are necessary for companies to successfully engage consumers on sustainability. While there is some overlap between these three strategies, we have separated the examples of best practices to illustrate each approach.

SHOW ME

Building sustainability into the shopping experience shows consumers that commitments are actively implemented while elevating their experience from purely transactional to transformational.

Marks & Spencer’s commitment to sustainability is visible to consumers as soon as they approach a store. New stores incorporate ‘green’ building techniques including a green roof and ‘living wall’, recycled construction materials, rainwater recycling, and outlets for electric cars in the parking lot. The company offers sustainable products in a wide range of categories (e.g. Fairtrade coffees and teas, carbon-neutral lingerie, green energy through M&S Energy). In addition, M&S aims to have each of its 36,000 product lines incorporate at least one sustainable or ethical quality (e.g. organic, Fairtrade) by 2015.

REI, the privately held American retail organisation, has worked to incorporate green design into its stores since the early 1990s, and is now a recognised pioneer and innovator in this area. Stores designed using sustainability principles are a highly tangible demonstration that a company is

‘walking the talk’. By offering sustainable

products, companies facilitate responsible purchasing and demonstrate their commitment to more sustainable portfolios.

SC Johnson’s Greenlist is a ranking system that guides the company’s product sustainability towards continuous improvement over time. The system, which was initiated in 2001, classifies ingredients for SC Johnson household products based on their impact on human health and the environment. In addition to facilitating sustainable purchasing choices, the system ensures that the lowest-impact ingredients possible will be used in developing new products or in improving existing ones.

TOMS footwear and eyewear matches every pair of shoes or glasses purchased by consumers with a pair of shoes or glasses donated to a child in need. This matching commitment is continuous, rather than part of a one-off campaign or annual event. The initiative also informs consumers that their products are made in communities in need and with sustainable materials.

Strong public sustainability commitments – provided they are backed by solid sustainability

performance – build credibility and establish thought leadership, laying the groundwork for consumers to want to engage with the company on sustainability.

Walmart has been highly vocal in pledges to the environment since 2005, addressing impacts such as renewable energy use and emissions in its supply chain. Such public commitments hold the company accountable to the public, while cementing a brand image that consumers can feel good about supporting.

Google has publicly committed to sourcing 100% of its energy needs from renewable sources, demonstrating a commitment through heavy investment ($1 billion+) in renewables research and development since 2010. Investment in renewables resonates with consumers as a major, material issue and one that fits with Google’s business and overall sustainability strategy.

TEACH ME

Building on standard features available with most websites, interactive websites showcase sustainability and engage consumers on social

responsibility in a proactive, user-driven way. M&S’s Meet Your Farmers introduces consumers to suppliers by products and location, and enables them to understand how their food is sustainably sourced. Levi’s Lifecycle of a Jean shows how the company reduces impacts along all steps of the value chain. Unilever’s Product Analyser shows the breakdown of greenhouse gases, water and waste that consumers produce from using Unilever products.

Companies’ first opportunity for engaging consumers on sustainability is to incorporate the platform into the in-store experience through prominent displays or messaging. When customers are included in the sustainability success story, they begin to understand why the corporation is taking action and what it means to them.

When customers are included in the sustainability success story, their brand experience is elevated from solely transactional into a transformational and impactful one. For example, as part of its Worn Wear launch, Patagonia held in-store events that educated customers on the platform and invited them to join in Patagonia’s Common

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Threads initiative. The company also began selling used Patagonia gear in stores as part of its plan to upcycle existing products. Today, worn Patagonia gear is sold in Patagonia stores with the ‘Worn Wear’ tag to reinforce the platform on sustainable consumption.

Many companies – especially those looking to mitigate negative impacts associated with their products – build sustainability platforms around reducing specific impacts in their core business. They engage consumers on sustainability using relevant platforms that are universally accepted, such as curbing obesity and water waste. While these initiatives are product-oriented, they can ultimately lead to broader lifestyle changes.

After conducting an audit into the lifecycle of a jean, Levi’s found that consumer care habits account for nearly half the energy and water used by a jean

in its lifetime. In an effort to curb these impacts, Levi’s launched a consumer education campaign through a new care instruction tag on all its jeans. The Care Tag campaign, which calls for cold water, line-drying the jeans, and donating them to Goodwill, informs consumers that their participation is a vital part of Levi’s sustainability platform.

To counter the higher calorie content of its products, Coca-Cola encourages physical activity and a balanced lifestyle through its sustainability platform Live Positively. Consumers can get involved in Coke-sponsored events and activities around healthy living and learn about calorie counts in products as well as what drives obesity and how it may be prevented.

Some companies engage consumers in sustainability beyond the scope of their products to encourage changes in behaviour that lead to a more sustainable lifestyle.

Ultimately, these companies invite consumers to participate in sustainability strategies that will have impacts beyond the product portfolio.

Unilever’s Sustainable Living Plan calls for incorporating sustainable behaviour across the value chain, through to end-use by the consumer. Extending its platform past products, Unilever explains how consumers can alter their behaviour towards more sustainable consumption. Today, its Project Sunlight initiative invites consumers to join Unilever’s commitment to making sustainability commonplace and ensure resources for the future.

Patagonia’s Responsible Economy platform brings attention to today’s culture of buying, and encourages customers to rethink the way they participate in it. Building on the Responsible Economy, Patagonia’s Worn Wear initiative encourages practical reuse and recycling of older, worn gear in favour of purchasing new items. Although Patagonia admits that it is comparatively new to sustainability practice, the Responsible Economy and Worn Wear both invite consumers to be a part of the process and to strengthen its drive towards sustainability.

Some companies work towards enabling more responsible and sustainable purchasing decisions. These companies educate consumers about the small differences that lead to a more sustainable lifestyle overall, and one that is in line with the overarching sustainability strategy.

IKEA’s Sustainable Life at Home platform focuses on enabling and educating consumers on strategies to be more responsible in their homes. The company’s People & Planet website shows how small

behavioural changes can combine with IKEA products for a more sustainable lifestyle. In addition, the company has committed to increasing the sustainability of its entire product line.

Tesco’s Healthy Little Differences programme tracks customer purchases at the supermarket through their store card. Based on this data, Tesco will recommend healthier purchasing alternatives for consumers in the upcoming year to engage them in its sustainability goals towards reducing obesity.

INVOLVE ME

Successful companies are able to frame their sustainability efforts in terms of what consumers are able to contribute. Collaborative themes and language spur consumers to action as an integral part of the company’s sustainability strategy.

M&S launched Plan A in January 2007, setting out 100 commitments to be achieved in five years. As part of Plan A, M&S has been working with its suppliers and employees to inspire its customers, be in touch with the communities it depends on to succeed, innovate to improve things for the better and act with integrity. Now M&S is working on Plan A 2020 which consists of 100 new, revised and existing commitments, with the ultimate goal of becoming the world’s most sustainable major retailer.

As part of its Plan A strategy, M&S launched a programme called Shwopping, which invites consumers to bring old garments to M&S every time new clothes are purchased there. The donated clothes are given to Oxfam and recycled into new garments to help the developing world.

Shwopping is consumer-

Marks & Spencer: launched Plan A in January 2007, with the ultimate goal of becoming the world’s most sustainable major retailer

FURTHER READING ON WARC.COM

Preparing for 2020: Five Best Practices for Marketers, Geoffrey Precourt, Event Reports, IAB Annual Leadership Meeting, February 2014

Unilever: BeBeautiful, PMAA Dragons of Asia, Bronze Award, 2014

American Standard to ANA: Purpose must drive purchase, Geoffrey Precourt, Event Reports, ANA Masters of Marketing, October 2014

Warc Trends Seriously Social 2014, How Social Strategy Can Drive Business Results, Peter Field, October 2014

focused by its very nature, and the donation process, which can be done in-store, involves consumers as active participants in Marks & Spencer’s Plan A.

Whole Foods utilises in-store Take Action Centers to inform and encourage consumers to take action on food-related contemporary issues of concern. The Centers facilitate community activism and build on the company’s platform of influencing sustainable human food supply.

Crowdsourcing campaigns solicit consumer input in sustainability decision-making and foster active engagement and participation in the platform. Often seasonal, these campaigns bring relevance to the company and reinforce it as one that cares about what consumers want in sustainability and corporate giving. Coca-Cola: America’s Favorite Park – Since 2010, Coca-Cola has held an annual contest for Americans to vote for their favourite park through physical activity. The more people move, the more votes go to their favourite park to help win money for improvements. America’s Favorite Park builds on Coca-Cola’s balanced living platform, encouraging exercise, while working towards a common community goal. Starbucks: My Starbucks Idea – Starbucks maintains an open forum on mystarbucksidea.com where consumers can submit their ideas on anything from social responsibility to products to community engagement. Through this forum, Starbucks has implemented several consumer-driven changes towards more sustainable business.

O2, a European mobile services company, launched ‘Think Big’ in 2008 to solicit ideas from youth that contribute to social and

environmental sustainability in their communities. In this ongoing effort, O2 provides financial support for the most promising ideas to benefit local communities. The programme has since expanded to include initiatives to increase digital literacy among UK youth.

Toyota’s Ideas for Good programme invites consumers to submit ideas for using Toyota technologies in non-automotive applications, specifically as solutions for global sustainability challenges. For instance, one winning entry featured a university medical centre using Toyota safety testing software to research head injuries to football players.

To truly engage today’s consumers, companies must go beyond traditional advertising and websites to reach customers on social media platforms. Companies that use social media gain ground in reaching more consumers, especially if their campaigns go viral. Patagonia: Worn Wear and ‘Don’t Buy This Jacket’ – In 2011, Patagonia launched an ad campaign with the tagline ‘Don’t Buy This Jacket’ in an effort to bring attention to today’s overuse of limited resources. The result was hugely successful, and the campaign quickly went viral on social media.

Building on the success of this campaign, Patagonia used YouTube to introduce its Worn Wear initiative, accompanied by Twitter and Facebook hashtags #WornWear and #AntiBlackFriday. Through Worn Wear, consumers will participate in Patagonia’s Responsible Economy by repairing and reusing existing Patagonia gear. Starbucks: Extra Shot of Good – Starbucks is known for encouraging community service and activism among both consumers and employees.

The company encourages those who participate in Starbucks-sponsored community events to post their activity on Twitter with the hashtag #extrashotofgood. These tweets show Starbucks’ global reach in doing good, with posts about company service projects appearing from Canada to Sumatra.

In addition to fostering an online community of volunteers, the #extrashotofgood hashtag produces a user-generated list of community volunteer efforts that are associated with Starbucks’ leadership in community involvement.

Unilever has long been recognised as a leader in engaging stakeholders with regard to its corporate social responsibility platform, the Sustainable Living Plan. While a very robust plan, the company has not extended the same level of engagement on sustainability to its consumers. In 2013, however, the company unveiled Project Sunlight, a consumer-driven platform that encourages consumers to commit to living more sustainably. While they are distinct plans, Project Sunlight builds on the goals in the Sustainable Living Plan to ‘make sustainable living commonplace’.

KEY POINTS

While some of these initiatives are used at the product brand level, most spring from corporate brand purpose – the ‘prime directive’ that the company uses to align all employee and stakeholder energies and creativity. Consumers are the most critical stakeholders – the source of corporate revenue.

Having a well-defined corporate sustainability purpose that supports and reinforces the product or service marketing is the starting point. Integrating purpose with marketing/brand expertise is the second step. Targeting corporate action and messaging to engage the most responsive consumers is the final step in the process. Aspirationals and similarly identified consumer segments fit the bill.

Consumer engagement is now the primary focus of green marketing. Aspirationals are receptive, best practices are established, and now commercial success depends on creatively engaging with them.

This article was first published in Admap magazine May 2015 ©Warc www.warc.com/admap