Green Ocean Strategies for Global Marketing World SME Expo 2008 Hong Kong SAR December 12, 2008.
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Transcript of Green Ocean Strategies for Global Marketing World SME Expo 2008 Hong Kong SAR December 12, 2008.
Green Ocean Agenda
B2B vs B2CSMEs and brands SMEs and Sustainable Supply ChainBlue Oceans and Green OceansCase Studies in Green Ocean Strategy Green Oceans for Turbulent Times?
purchases
Business-to-Business Marketing vs. Consumer Marketing?
considered
emotional buy ----------- yes
impulse buy -------- NEVER
Business-to-Business Buyers
career reputation job complexity stress
hero promotion? performance review?
turnover sustainability sales boss
price competitiveness colleagues brand reputation specifications staff
efficiency ROI customers…
SMEs + Branding Strategy
If done correctly• yields new business• builds exclusive, trusting, loyal customers• permits premium, value-based pricing• generates more revenues• sustains business in economic downturns
SMEs + Branding Strategy
Done incorrectly, or not done at all
• destroys credibility and trust• makes you invisible -- a commodity in lowest-bidder
market
Brand = Purpose + Differentiation
Purpose is customer-driven Differentiation -- in fact and substance
““How are you different and why should the How are you different and why should the customer care?”customer care?”
Brand strategy for the planet
“Prove to the world that solving the climate problem is the biggest opportunity for economic and social mobilization since World War II.”
US Former President Bill Clinton, Greenbuild 2008
…..solving the climate problem is a Green Ocean opportunity
for B2B SMEs to build brand
in North America and Europe
Brand strategy B2B SMEs
Global Brands + their B2B suppliers
differentiated their brand
using sustainability as their purpose
Global Brands + their B2B suppliers
differentiated their brand
using sustainability as their purpose
CEOs, Sustainability and Supply Chain
Supply chain = key enabler
for sustainability To be in their supply chain =
prove you are Green and Ethical Significant change in the wings
CEOs and Sustainability
Improve Brand (54%)
Differentiate Products (50%)
Top reasons for sustainability management
Not compliance, risk or cost/price
Sustainability in the Supply Chain
48% of b2b buying decisions turn
on environmental & sustainability impact
60% of companies had de-selected suppliers
for not meeting sustainability criteria
Sustainability Gap = Opportunity
72% of CEOs say their companies
should incorporate sustainability
into strategies and operations
50% are doing so
but <5% doing it successfully.
The math looks good.The math looks good.
SME Brands in B2B Supply Chain
You and the Sustainability-Driven
Supply Chain:
Opportunity to rescue global brands Opportunity to rescue global brands
facing de-selection for not meetingfacing de-selection for not meeting
sustainability criteriasustainability criteria
Blue Oceans = Make Competition Irrelevant
Create uncontested market space Find + serve Third-Tier
‘non-customers’ Value innovation = pursue
differentiation + low cost
2020 Commitments
Zero landfillZero hazardous wastesZero air emissionsZero water emissions Minimum LEED SilverAll Green Energy
Herman Miller: Green Ocean Brand Winner
Most Admired Company in its Industry, 2007 (Fortune)
One of 50 Most Innovative Companies Worldwide (Fast Company)
One of 50 Best Manufacturing Companies (Industry Week)
World’s second largest office furniture maker
Interface: Green Ocean Brand Winner
World’s largest manufacturer of commercial modular carpet
Founded in late 60s “to reinvent floor covering”
By 1996, cut GHG by 56% with energy efficiency and renewables
Mission Zero:
Our promise to eliminate any negative impact our company may have on the environment by the year 2020.
Ø™
mission
Entropy®
zero “attic stock” near zero waste near zero repair and
maintenance cost
”Their biggest product in the shortest period of time in the history of the company.”
Fast Company
Interface: Green Ocean Brand Winner
Offers best brands in industry
Ranked #1 by top interior designers
Global market share twice that of nearest competitors
Strong Financial Performance
“We’re just getting started.”
“…our sustainability goals for 2020 are a brand enhancing competitive strength and strategic initiative.”
China’s 2-year, 4-trillion-yuan stimulus focus on energy/ environmental sectors(China Daily, Nov. 14, 2008)
Still Skeptical?
European Union expected to follow China, Canada, South Korea, California with CO2 curbs on all automobiles
Dutch-Chinese consortium to invest $1 billion building four wind farms in China
This week: 190 Nations meet in Poland to draft “Kyoto 2” for 2013
Obama Plan
Cut GHG emissions by 80 per cent by 2050
One million plug-in hybrid automobiles by 2015
Focus on energy and renewables to stimulate jobs
Generate 10 per cent of US electricity from renewables by 2012.
Building Sustainability
Building Sustainable BrandsSusan Sheehanmotum b2bToronto, Canadatel: [email protected]