It takes two to tango (Final Episode)

I could use this last episode for making some comments about the benefits companies could potentially obtain from producing and selling eco-friendly products. I’ve mentioned one in the Starbucks case: raising the bar for competitors (or creating barriers… po-tay-to, po-tah-toe). Another one is getting into markets that are niches today, but are expected to grow strongly in the upcoming years... I’m not only talking about sales here, but also about shaping a new market so that the rules set by the first players are the ones the companies that enter later have to play by.

I could also speak about how eventually all of us will have to consume products that are not harmful for the planet because, breaking news, the Earth happens to be finite.

But instead, I came up with a list of What-To’s and How-To’s that companies could implement (or have already) in order to stimulate the consumption of eco-friendly products, and that are the product of all the reading and thinking and writing of these posts.

Knowledge is power There’s a curious thing about the awareness stage for green products: companies can educate consumers while getting into their minds as a possible choice. Sometimes the limits between awareness and interest are a little blurry, and a company will be saying “Hi, I have a product that could be suitable for you” and “My product has these benefits to offer” at the same time. So let’s say one of the benefits is that you can save energy by using the product, why is that relevant? Because you’ll save in your electricity bill, ok, but also because we all have to try to save energy and be more conscious about the usage of natural resources.

By now you should know I love to give examples: Wal-Mart and GE partnered for promoting the use of efficient light bulbs. Wal-Mart put the bulbs in the most desirable position in retailing -the shelves at eye level-, adding an educational display from GE so that the consumers could learn more about the product and about energy saving. What we have here is the best kind of availability you can get at a supermarket store, making the bulbs appear as an attractive option and informing the consumers about an important issue. Remember when in Association of ideas I spoke about the new role that companies have in societies? Educating consumers is part of it.

Engage, entertain, give a role to people This is a little Marketing 101, but it’s always more effective to send a message when you say things that are relevant and understandable for your target market. Maybe it was not so difficult for Timberland, but what if you need to address a customer that can’t easily see the link between your product and the impacts it causes in the environment? Well, there’s a number of things a company can do.

You can shape the message so that it’s entertaining. I have two videos that are excellent examples of this: one is from Epuron, a German company that supports large-scale renewable energy projects. Check it out here, I think it’s really sweet: http://www.youtube.com/watch?v=cQbl1c63Ofo. The other one is for inviting people to walk instead of riding a car, an initiative proposed by Do the Green Thing: http://www.dothegreenthing.com/actions/walk_the_walk.

You can also pick a messenger that is attractive to your audience; in the case of the Surf Excel add, the people from Unilever chose a famous Indian actress. Or you can show people how to be part of a change towards green, like Ariel’s Turn to 30 campaign.

The more, the merrier Even if a company decides to operate in a sustainable way and actually does, polls show that consumers trust more in nonprofits and environmental groups. It’s a respectable perspective, since reading “We’re sustainable” in a company’s website guarantees nothing. So why not inviting a competent third party? They add credibility to the company’s operations; plus, they have been in the “green business” for a while, so companies can learn from their expertise… Starbucks had a successful experience partnering with Conservation International. I know that it is not related to the environment, but Unicef joint efforts with a lot of companies, P&G and Unilever are two that I mentioned in this series.

Timberland did not partner with a nonprofit -at least that I know of-, but created a group called Earthkeepers, just like their eco-friendly line of shoes. This invites people to be part of their actions and gives a role to consumers, like I said in the previous bullet.

It’s not rocket science! It is absolutely true that consumers are more informed that they used to be, and that gives them the possibility of making wiser choices when they have to buy something. But this doesn’t mean that people should read an encyclopedia before buying every item on their grocery list! There are some products that have a clear sign on their packaging showing they are less harmful for the environment. A common example in the US is the Energy Star sticker that efficient appliances have, showing that the Environmental Protection Agency certifies they are true energy savers. I think this is great, because consumers shouldn’t need to solve differential equations to tell whether or not a light bulb or a heater will make them save electricity.

On the other hand, while writing these posts I checked the websites of some products we use every day I found a lot of environmental and social programs the companies that produce them have. Unilever is changing the fridges where their ice creams are displayed in Europe in order to cut climate change, reducing the use of energy and the waste of water in one of its frozen food plants in Italy, and implementing several packaging recycling programs in Brazil, among other examples. I thought it is too bad you don’t get to know these things until you visit their sites… Of course over claiming how fantastic your company is is not exactly a good idea, but a little information doesn’t hurt!

The good news for all of us, the younger generation: we have a lot of work ahead of us! :)