The days are gone when a household product could be successfully
launched or its market share increased through clever advertising or an
aggressive pricing strategy alone. These days, given the bewildering
assortment of products on offer, brands which can be ’trusted’ are most
likely to end up in the shopping trolley.
This element of trust not only relates to the performance of the brand,
but to the reputation of the manufacturer itself. The fact that a
supermarket stocks a particular new product, or endorses others through
multi-purchase offers, has encouraged consumers to look upon the
retailer as an ’editor’.
This position of authority is further enhanced by the guides and fact
sheets supermarkets publish on areas such as green products and good
nutrition.
The current trend towards greener marketing is in line with Government
thinking. A Green Claims Code on environmental labelling was introduced
in the UK in February 1998 to improve the standard of environmental
claims on products and protect consumers against false or misleading
claims.
A draft code has been drawn up by the European Commission for the
standardisation of environmental claims, statements or symbols used on
products, packaging labels, literature, technical bulletins, advertising
and publicity.
But the challenges of both communicating a greener marketing message and
convincing manufacturers of the benefits of adopting a greener marketing
strategy, are immense. The problem is compounded by the lack of a
single, united voice on green issues - what manufacturers are saying
does not always tally with the Government’s stance. This lack of
cohesion was one of the issues addressed at a recent seminar entitled
’Greener Marketing - Making the Environmental Message Matter’, which was
hosted by the Environment Council and chaired by PR Week.
Dorothy MacKenzie, director, of design and marketing company Dragon
International, said: ’Customers are confused about green issues - this
is perhaps because of the lack of a consistent communication programme
coming from Government about what the real issues are and what we should
be doing. We need more consistent messages that manufacturers,
Government and NGOs can line up against.’
Speakers at the seminar conjured up images of a confused consumer,
beseiged on all sides by conflicting green messages, but as MacKenzie
point out, research shows when asked what they want on almost any
subject, customers answer ’more information’.
The paradox is not lost on MacKenzie. ’If you give consumers more, they
can’t necessarily absorb it. I think the research is saying something
more fundamental - customers are using information as a surrogate. They
are really saying, ’how do I know who to trust and from where can I get
a reliable steer?’.’
Supermarkets are happy to fill the void, but Jayn Harding, Sainsbury’s
deputy environmental manager, admitted it is not an easy task. ’It’s a
challenge to inform customers about the environmental quality of
products in an unbiased, credible, clear and unambiguous way without
bombarding them with too much information while bearing in mind there is
other information we must provide by law, such as food safety, health
and nutrition.’
Sainsbury’s, which serves nine million customers a week in over 400
stores, has put in place a greener marketing strategy. This includes
implementing the Green Claims Code; stocking products made from
sustainable or recycled materials, such as kitchen towels; stocking
organic food, and providing ’greener’ customer information. Sainsbury’s
has produced two Environmental Reports, which it made available to
shareholders, customers, suppliers and staff. It also uses labelling on
products such as its Novon washing powder, which carries the new
’Wash-right’ advice on reducing package waste, avoiding under filling
the machine, and using the lowest temperature.
Harding says that customers need clear and credible information that
they can trust. ’The Green Claims Code goes a long way to achieving
this, but we need more internationally recognised and independently
verified schemes that we can all trust and work to.’
But, far from clarifying matters, the environmental logos - which range
from the Forest Stewardship Council’s stamp of approval on timber
products to the Soil Association’s logo for organic food - can often
muddy the waters.
Teresa Smallbone, researcher at the National Consumer Council says: ’The
principle of a good label is that it must be visible, useful, widely
recognised and must enable the consumer to use the information to
compare products in a meaningful way.’ The EU introduced Eco-labels in
the early-1990s which assess a product’s qualities relative to others in
its category and look at its whole life cycle from manufacture to
disposal.
Mark Barratt, UK marketing manager of Hoover European Appliance Group
said at the seminar that Hoover was the first domestic appliance
manufacturer in the Europe to market and display an EU Energy label
which incorporates the Ecolabel on its New Wave washing machines. The
new machines boast a 31 per cent reduction in water consumption, 40 per
cent reduction in electricity use and a 36 per cent reduction in
detergent use, compared to previous models.
Even though sales did increase following its introduction in 1992,
Barratt says: ’At the time of purchase, the Ecolabel is of importance to
customers but only as one of a number of support benefits to the primary
benefit of the perception and anticipation of clean clothes.’
Barratt’s experience is not unique. Greener marketing is clearly not a
crucial part of the selling message. Smallbone says: ’Data from
retailers reveals that green products are bought by a tiny minority
although there is strong support for ’green shopping’.’
MacKenzie adds: ’Greener marketing is more of a reassurance than a core
selling message. Marketers must understand how it can impact on what
they are doing. They are not going to see obvious opportunities in
market share, nor are shares suddenly going to take off if they
introduce more environmental products. The importance is in how it
relates to brand reputation.’
One company which has made a green marketing strategy an integral part
of its brand reputation is the Co-op Bank. A recent Mintel survey rated
the bank third in a list of the UK’s most trusted companies.
Jim Sinclair, group marketing manager, Co-op Bank, confessed he is often
asked if the Co-op’s stance is a gimmick. ’People cannot believe you can
be successful and ethical. Yes we have a good marketing strategy, but it
articulates a truth about our business and the values we share.’
Sinclair believes there is evidence of a major shift in way consumer
interacts with brands on a daily basis. Green issues, he says, have now
shifted from global concerns, such as the rainforests and the ozone
layer, to issues of ’local pollution.’ Multinationals, such as Shell, he
believes are recognising the role which greener issues play.
’The values we espouse have increasing relevance to today’s consumer and
while they may not be carried through into active purchases as yet, the
tide has definitely turned and it can only grow,’ says Sinclair.
GREEN FORUM: BRINGING IN THE MAJOR PLAYERS
Forum for the Future was set up in 1996 by Friends of the Earth’s
Jonathan Porritt, Sarah Parkin of the Green Party and economist Paul
Ekins to encourage and promote sustainable growth through partnership
with business. Forum Partners include Center Parcs, EMI and Sun
Microsystems.
Although green campaigners had been successful in highlighting
environmental problems, the founders felt that the Forum should focus on
finding and communicating solutions and best practice in business, local
and central Government and society as a whole.
Green Futures, with a circulation of 12,000 is the flagship publication
for Forum for the Future and is funded by subscriptions, advertising,
charitable grants and contributions from the Forum’s founding corporate
partners and its own partners. These include Sainsbury’s, the Design
Council and the Shell Better Britain Campaign.
Partners are chosen on the basis that they have a demonstrable
commitment to pursuing sustainable development and each receives a set
allocation of ’Partners Viewpoint’ pages which allow them to communicate
their views and experiences. Editor Martin Wright demands that they not
only talk about progress, but also problems they may have encountered.
’We aim to get companies actively involved in the debate. It is useful
for others to learn how companies have tried to deal with certain
problems,’ he says.
’And the companies in turn get to involve themselves in a grown-up
approach to sustainable development.’
Peter Woodward, UK manager of the Shell Better Britain Campaign says:
’We are involved because Green Futures tries to understand the
complexity of sustainable development issues and offers challenging but
positive routes for business and other organisations seeking a way
forward.’
Green Futures aims to employ a full-time marketing person and Wright
believes that the title’s circulation will rise once people realise that
it is not full of the usual ’green’ rhetoric. ’Campaigners in the past
have spoken with a cynical voice but we want to inspire people that life
can be a richer, sweeter thing,’ he says. ’Some of the rhetoric has been
about guilt-tripping people which only works for the relatively
well-off.
Trying to frighten people can be disempowering and over use of scare
tactics is tactically unwise and morally indefensible.’
Suzan Leavy.
