Monday, May 11, 2009

How to Successfully Market Green products –The Green-Value Test.

Joel Makover published recently an interesting analysis of the different types of green consumers according with their purchasing behavior, lifestyle, demographics, psychographics, date of birth or just where they live (I made up the last two!). The Makover categorization reads like the four stages of a new relationship: Committed, Conflicted, Confused and Cynical.

His simplified categorization into four groups is interesting and easier to understand from an intuitive standpoint than the segmentation from the Natural marketing Institute Naturalites or The Roper Organization Grousers. At EverQuest Design we looked at these simplified categories with demographics and psychographics attributes to identify market potential and how they could be reached. We have applied this methodology with clients such as Cirque du Soleil to define target markets for green or recycled products (bags and accessories) they wished to develop, launch and market.

First and foremost marketers should be made aware that even in the best scenario green consumers only represent 45% of total markets. At least half of consumers just do not care about global warming; the environment, recycling and possibly never will. There is probably no amount of information that would change their mind about global warming short of actual icebergs floating off the coast of Florida. That’s the bad news about green consumers market potential.

How about the other half who do care about sustainability? The good news is that true green consumers (15-20%) are willing to pay more for green products and are positive influencers to other segments. For the people who have read the The Tipping Point from Malcolm Gladwell (2 million copies and counting) you could look at the Committed Segment (see Makover) of green consumers as positive influencers and mavens. These consumers are found roaming green and sustainability blogs (TreeHugger, Greenbiz) when they are not writing on their own blog. They influence others through their actions and transmit and share information on all aspects of sustainability from clean energy to composting or promoting a ban on single-use plastic bags. The Committed in the Makover categories are the strongest environmental advocates.

The Conflicted and Confused green consumers represent softer segments that tend to be on the fence and can quickly convert to Cynical when confronted with blatant greenwashing. The best ways to reach green consumer vary according to product categories and industry.

Our experience in reaching and marketing successfully to green consumers is based on a simple formula. Green consumers look for Green-Value attributes in a product. To apply a sometimes overused but still effective approach: Does your product or service allow me to reduce, reuse or recycle the earth’s resource to live a more sustainable life? Consumers intuitively apply the Green-Value Test to any product claiming to be green and vote with their dollars. From clean energy (using less fossil fuel) to laundry detergent(biodegradable) or recycled packaging there is an evaluation in the consumers’ mind about the green claim and its actual effect on the environment. Obviously green claims and a more reliable eco labeling system is necessary to minimize greenwashing but consumers are not as gullible as some companies seem to think.

As eco-seals proliferate, so do doubts: The Wall Street Journal recently published an article stating that "It's too easy to be green", The Wall Street Journal, backs it up by citing the fact there are about 300 "eco-labels" in the marketplace, competing to be the environmental equivalent of a Good Housekeeping seal of approval. The result: increasing confusion and cynicism among consumers about the veracity of green marketing promises and a growing need for government’s regulation setting standard. Eco labeling should enable consumers to ascertain with confidence the Green-Value of a product.

What does it really mean to be green? Is having some recycled content enough, and if so, how much? Is something biodegradable still green if it travels a thousand miles to reach shelves? And if a green product doesn't perform as well as its non-green peers, is it really preferable," asks the article.

We must caution marketers that selling products to the elusive green consumer is never easy. The challenge lies in being able reach the green consumer through green info hubs and passes the Green-Value Test. We have successfully marketed to green consumers by focusing on reaching the Committed where ever they are (Green blogs) and reaching out with true Green-Value product propositions. The Green and eco-product market has tremendous potential for marketers willing to be creative both in product design as in marketing strategies.

Tuesday, May 5, 2009

Terra Cycle upcycling and what garbage really costs to recycle.

There is an interesting article on TerraCycle approach presenting their partnership with MARS to upcycle candy wrappers into everyday eco-green-recycled products sold through mainstream retailing. It is always a good way for consumers to “vote with their dollars” by buying recycled products. However the journalist makes an argument about TerraCycles’s strategy to sell products like bags at low prices because their raw material costs are low. This argument is flawed and contributes to myths and misconceptions about recycled products.

Upcycled and recycled products are costlier to manufacture than products using “new material” for the following reasons:


1. Collection infrastructure is often non existent. TerraCycle collects discarded and unused food-item wrapping material through partners(Kraft) or with incentive programs at schools. There is a cost associated with collecting, transporting, sorting and cleaning such material(soiled candy wrappers!). This cost should be factored into manufacturing.

2. Recyclable Material processing: candy wrappers and other small packaging pieces need to be assembled together to make sheets for cutting and sewing bags, pencil cases etc. any recyclable material require processing(sorting, cleaning, cutting) for preparation to manufacture products. This is not required when you use new material in rolls for example. Furthermore, a seamstress in China is paid $0.20 PER HOUR while the going rate in North America can be as high as $0.20 PER MINUTE with benefits. The labor cost component in making recycled products is usually higher since bags and accessories made from recycled materials should “logically” be made in North America.(Would you ship candy wrappers to China to make cheap YET Recycled bags to sell to US consumers?).

We have been designing and marketing bags and accessories made from recycled textiles for six years using Cirque du Soleil tent materials, advertising billboards or old sails from the Americas Cup. We chose to manufacture in Canada because we felt it would have been environmentally counter-productive to ship our recyclable material to China, Pakistan or India to save on labour while incurring environmental costs(carbon from shipping, handling, toxic products used to “clean” our material).

There is no such thing as a Zero raw material cost because “it’s garbage”. The labor costs are often a greater component of the total product costs. We must remember that recycled products have an environmental benefit that should be “sold” to consumers (reduction in material sent to landfills generating green-house gases, better use of resources).

The “Recycled Product Premium” in price often times reflects higher costs and is not a way for green product marketers to increase their margins! There is a cost to saving the environment and telling consumers that buying green costs the same for some product categories is misleading.

Friday, April 17, 2009

Earth Day April 22nd -Trying to be greener

Being green and saving the planet was at the forefront of the media in the first half of 2008. With a rapidly deteriorating economic situation the recession has supplanted the environment as the main issue of concern for most people. Save yourself before trying to save the planet is the new motivation for millions of unemployed workers around the planet.

To make matters worse the green movement has not been very successful in making sustainable development easier to understand for the average consumer. It is often difficult for consumers to make sense of all the jargon behind carbon footprint, cap and trade or simple recycling issues. For Earth Day we suggest a simpler approach: JUST TRY TO BE A LITTLE GREENER.

Most consumers want to be greener but cannot necessarily be green all the time. Let’s face it we cannot always Reduce, Reuse or Recycle. Starbucks for instance cannot provide recyclable cups before 2015 and how many of you carry a clean mug in the car?

Earth Day is celebrated every year on April 22nd. It was founded in 1970 by U.S. Senator Gaylord Nelson as an environmental teach-in, and was celebrated in more than 150 countries. On the 22nd of April, 1970, Earth Day marked the beginning of the modern environmental movement. Approximately 20 million Americans participated during the first Earth Day, with a goal to promote a healthy, sustainable environment.

We suggest five simple ways to be greener for Earth Day and apply a simple and somewhat cliché principle: Think global, Act local.

1.Do the right thing: Recycle as much as possible. Not everything is recyclable and until it is we will just have to do our best to minimize what ends up in garbage. You can also buy goods made from recycled materials

2. Water is life: Think about it and conserve it. It is a simple as turning the tap off when you brush your teeth. Avoid single-use water bottles and carry a reusable bottle.

3. Shop for the environment: cut down on packaging. Buy reusable shopping bags and say no to single service plastic bags

4. Don’t litter and don’t tolerate people who do. Remember you are only a passenger on this Earth.You wouldn’t throw garbage in your car and sit in it.

5. Leave the car at home from time to time: Take the bus or walk today. Buy a bicycle and use it for small errands.

Earth Day 2007 was one of the largest Earth Days to date, with an estimated billion people participating in the activities in thousands of places around the world. Imagine what a billion, mobilized and motivated consumers can do in a day to Reduce, Reuse or Recycle and keep doing it the rest of the year. It is all about being just a little greener.

Wednesday, April 15, 2009

What is a green-collar job and where can I get one?

There is a lot of talk in the media about “green-collar” jobs, the road to recovery and renewed prosperity through such jobs. Hundreds of thousand of unemployed workers are asking themselves two questions: What is a "green-collar" job? And where can I get one? According to Lucy Blake of the Apollo Alliance; which is helping to transition the economy from fossil fuels to renewable energy: “A green-collar job is, in essence, a blue-collar job that has been upgraded to address the environmental challenges of our country”.


In reality “green-collar jobs” are old blue-collar jobs lost in the past six months across all industries; that are being created in new green industries such as clean energy(solar, wind turbines) or sustainable development-focused companies. The reason these jobs are so important to the new economy is two-fold. First they are an integral part of the stimulus package put forward by the Obama administration focused on infrastructure and construction. From winterizing home and providing better insulation to installing solar panels electrician, plumbers and carpenters become “green economy” workers.
According to Van Jones - founder of the Ella Baker Center for Human Rights and of the Oakland (Calif.) Apollo Alliance and who also advises President Barack Obama on green jobs - green-collar jobs are manual-labor jobs that can't be outsourced. "You can't take a building you want to weatherize, put it on a ship to China and then have them do it and send it back," Jones said in a recent New York Times interview. "So we are going to have to put people to work in this country - weatherizing millions of buildings, putting up solar panels, constructing wind farms. Those green-collar jobs can provide a pathway out of poverty for someone who has not gone to college."

The second reason has to do with the new “Energy Technology” revolution. The environmental and energy challenges will be around long after we are out of this recession and into a strong recovery. There is a “Triple E” crisis with the Economy, Environment and Energy creating the perfect storm. Green-collar jobs are important to get us out of the Economy crisis but will be critical to meet the challenges facing the Environment and Energy crisis. The opportunities offered by a greener economy focused on sustainable development are numerous and span many industries. It is all about energy efficiency, better management of resources from waste to manufacturing with a closed-loop approach.

Green-collar jobs are being created as we speak with entrepreneurs finding opportunities in the new economy based on sustainable development. From the auto industry with hybrid-technology cars to carpets made with recycled materials green products need green-collar workers to make them. Opportunities abound for eco-innovation in a world where consumers are becoming greener. The challenge is for everyone to become a little greener and to seek and buy eco-products which will in turn create green jobs.

Friday, March 27, 2009

Green opportunity: Are green products recession-proof ?

During a recession consumers become more sensitive to price as compared to other product attributes such as quality or brand. Consumers are trying to stretch their dollars and become more concerned about what they can afford across all product categories from laundry detergent and frozen pizza to clothing and furniture. A number of studies and articles and have shown most consumers change their purchasing behavior during a recession; not only the ones temporarily unemployed and laid-off.

Green products seem to defy this trend and may be somewhat recession-proof. A number of reports in recent days from Forrester Research, the Carbon Trust Standard and IRI have shown environmental considerations remaining important even during a recession. Environmentally conscious consumers seem to remain green even during hard times. They are willing to pay more for green and ethically produced products and they are brand loyal to companies with genuine environmental benefits.

The market for green products was estimated at $209 billion in 2008. This represents an opportunity for green marketers as green consumers are truly distinct from mass consumers. Green consumers are willing to pay more or stick to brands that serve their ethical values and meet their needs for a more sustainable environment. Some authors such as J. Ottman suggest that products should not be sold on their green-ness alone. Obviously sub-par or lower quality products sold at a premium because they are labeled green will not fool consumers. However, these studies indicate that consumers with a positive perception of green products will continue buying them in harder economic conditions and will not compromise.

According to J.Ottman the five rules for green product marketing are:

1. Consumers must be aware of and concerned about the issues

that your product professes to address. Don’t sell a green features nobody cares about.

2. They have to feel that they’ll make a difference by using your

product. Are your eco-friendly light bulbs saving them $1.50 per year in electricity?

3. They have to believe your claims. Are you claiming to save the earth with your laundry detergent?

4. The product has to work. Even if your detergent is saving the earth it also has to remove stains!

5. If you’re charging a premium, the consumer has to feel that it’s

worth it. Greenwashing is a no no. Shown real green benefits.

There is a real opportunity for entrepreneurs to develop and market eco-friendly and green products given the size and growth of this market. We can think of a number of green products services that contribute to the environment and meet a genuine need for environmentally conscious consumers. Green solutions to old problems. There may be a way to eco-innovate our way out of this recession. Green jobs and opportunities are waiting. This economic crisis will end in a few months but the climate crisis will remain for decades to come and so will the opportunities for a better, cleaner environment. This is a call for action from innovative eco marketer to seize the opportunity. Do good, Make money.

Tuesday, March 17, 2009

Marketing green products with a story

Wednesday, March 11, 2009

Earth day 2009: Reduce, Reuse, recycle with a cool reusable shopping bag


What are you doing on Earth Day to be greener and contribute to a cleaner, healthier planet this year?

We have decided to present every day until Earth Day on April 22nd a cool and unique reusable shopping bag.

Our criteria is simple :the bag should promote R3 behaviour(Reduce,Reuse,Recycle) from consumers while being original in design and use of materials.

For the sake of full disclosure we are featuring one of our original Cirque du Soleil shopping bag made from recycled promotional banners as our first pick! This is a midsized shopping bag made by Everquest Design using recycled advertising promo banners. This bag is unique in the use of authentic Cirque du Soleil banners. It is also available in a larger model and made of original Cirque du Soleil big top material(Circus tents).

Thursday, January 29, 2009

Lessons in marketing eco and recycled products

In the past six years I have advised clients on the best way to design and market eco and recycled products. Along the way I have learned a few things about what works and doesn’t in green marketing. This blog aims at helping entrepreneurs and green marketing professionals to successfully market (sell profitably!!) recycled, eco, green products to consumers. We will provide you with case studies of actual marketing strategies to successfully market recycled products.

We will also present good and not so good examples of recycled and eco products. This is not a blog to discuss global warming and carbon footprint but rather a call to action to design, create and market eco-green products to reduce waste and landfill material through R3 product strategies.

We wish to help marketers avoid the pitfalls and wrong assumptions about ecobuyers