Green positioning objective is to occupying a distinctive place in the mind of potential consumers, by linking the product value proposition and the brand with the desired outcome that they are expecting. It should be used to pursue a long term unique market positioning in order to differentiate a product from that of competitors. Independently of the selected positioning, it is fundamental that it addresses four variables of green brands, brand equity, brand image, brand satisfaction, and green trust (Chen, 2010), these variables will be key in establishing credibility in order to attract the desired green consumer segment or segments, which according to the National Geographic 2014 Greendex results could be estimated in billions of …show more content…
Lean Green
Lean green strategy focus on the firm becoming socially responsible, by complying with existing regulations, with out the need of a communicating their green initiatives to consumers due to their concern of being differentiated from competitors because of their use of green business practices, as they might not be always sustainable. The main objective of this strategy is to achieve a cost competitive advantage through product development over the rest of competitors, in order to reduce costs through their environmental initiatives. A few examples of the users of this strategy are Budweiser and Coca-Cola, as they have engage in environmental practices by reducing the amount of aluminum in their product cans, and starting recycling programs which helps saving millions of dollars to them each year. However they don’t advertise these green initiatives, due to the fact that linking them to their brand and product could affect them adversely.
Defensive Green
Defensive green strategy focuses on the defensive green marketing approach done by a company through the use of product development, and promotion. The main objective of this strategy is to serve as a damage control tactic to protect the brand against a crisis or competitor’s actions. The company might engage in public relations, advertising, and the use of environmental events sponsoring in a sporadic manner to communicate their green initiatives to green
assuage any guilt they might feel about consuming mass quantities of unnecessary, disposable goods by dutifully tossing these items into their recycling bins and hauling them out to the curb each week”. (Westervelt, Amy. "Can Recycling Be Bad for the Environment?" Forbes. Forbes Magazine, 25 Apr. 2012. Web. 5 Dec. 2015). So why is the reason that companies are starting to “Go Green”? Its clearly obvious that the change in America from an industrial country to a environmental country has taught big business how to market environmentalism in mass quantities of their product. The strategy of the consumption-environment mindset are increasing rapidly. If this trend of buying without thinking does not slow down, with problems like not shifting priority from consumption to being environmentally aware, things will certainly worsen. On the topic of green marketing, people often see that green marketing refers to the advertising of objects or products with environmental characteristics to them (Like the Nestle bottle, for example). Terms like “Environmentally Friendly”, “Refillable”, and “Recyclable”, are some of the things people associate with green marketing. In reality
The Marketing process is made up of simple concepts that involve lots of research on the part of the marketer. The process begins with understanding the consumer, without knowing what consumers need or want, it would be extremely hard for firms to both develop and sell a product. Knowing that consumers want more green products due to growing environmental concerns is a very important detail. Needs and wants are what fuel consumer purchases and marketers must perform research in order to best serve their customers. Through this research, marketers are led to the next step of the process and can now develop a customer driven marketing strategy. Here, the firm must decide how it will differentiate its product from others on the market.
According to Gino Van Ossel (2012) " Today, leading companies in the world and Turkey have begun to change their production and marketing strategies accordingly, as environmental awareness becomes more important.” Green marketing predicts that it will include green qualities from product packaging to the stage where it becomes waste after its final use, and for this purpose, consumers give priority to informative signs and explanations in the product or service presentation phase.
As we have seen an increase in awareness around sustainability and climate change, with the help of Al Gore’s Inconvenient Truth documentary in 2006, we see organizations moving towards mitigating the effects of climate change in various ways (Al Gore, n.d). As this corporate social responsibility has become more prevalent, organizations are now pushing their green agenda by publishing sustainability reports, doing mass marketing and implementing sustainable business practices to portray the image that they too are working towards protecting the earth’s natural environment all the while focusing on their underlying goal of selling their products and
Think green! Eco-friendly product! These slogan are often used for items being advertised in the green marketing campaigns. Green marketing is the advertising of products that stated they were safe for the environment. Products were changed to be part of the green marketing movement from changing formulas, packaging process, and advertising them. When the products were advertised to consumers they used images of foliage, the color green, and other images of nature. This appealed to consumers who wanted to have a positive impact on the environment. However, the green marketing was not only to reduce waste and pollution into the environment, but as well for the minimizing and simplifying the way of living for people. The consumers who would radically change their way of living often relocates somewhere where nature is more abundant than in the city. Additionally, materialistic people would
Going green is a phrase that has swept America back and forth multiple times over the past few decades. No matter where one is to go, a person is likely to see something that contributes to the environment. This could be anything from community cleanup programs, to designated bins for trash and recyclables. Even the way buildings are made contribute to the topic of going green. One reason why industries take up the theme of going green is to the fact that there is money to be made. Minimizing waste in construction and manufacturing help companies to save money.
This company has implemented so many different methods for going green, therefore I will be only discussing two as follows; the first strategy is a slogan that is being used by the organization on a regular basis called by the name; Reduce, Reuse, Recycle. All the stores that the company has have taken the initiative to reduce the impact we as human beings create on the earth by reducing paper by going paper less, composting, using vegetable based inks etc. Reuse- this is done by reusing materials whenever it becomes possible. The company provides the use of reusable grocery bags to its customers, new stores are constructed with reclaimed wood and bricks and also the installation of rain water collection systems to reuse rain water for non-consumable purposes is being practiced. Recycle- this is done through the utilization of the delivery trucks which backhauls waste to regional facilities where it is turned into compost and donated to community gardens or stores. Other methods of recycling is done by replacing disposable batteries with rechargeable ones, using recycled paper with a high percentage of post-consumer waste
The possible recommendation aims for long-term consequences of pursuing ‘green’ strategy. From the given market trend, demand of green products may gradually increase year by year. In addition, one of the studies reveal that customers are becoming more “sophisticated consumer” (Brands) on environmental friendly products and prefer more sustainable company. Thus, Tennent should engage in a strong interactions with consumers by investing heavily in awareness and accessibility, using trade shows and social marketing to raise concerns on the environment. With this marketing effort, it can raise environmental interests of consumers who hesitated on adopting the new cleaning-solution. Not to mention, economic barriers of switch-over cost is one of the main concerns, so providing services like trial rental, or long-term lease may help to reduce the barrier. Next, the feedbacks from a retail company suggest that the cleaning solution is not comprehensive enough. Even though, Tennant has the environment friendly-technology with absence of trade-off that satisfies the part of market trend, the company still need to engage in continuous innovation to produce diversified products that can satisfy different needs of potential customers. The innovation may lead to the creation of new revenue stream that can help to sustain competitive advantages from rivals such as Clorox and Mr Clean. Last but not least, Tennant needs to develop a plan to reduce overall operating cost while maximizing environmental benefits to capture dual objectives on profitability and eco-friendly. If the company can minimize its cost to a certain point, they should target segments of “Base of the Pyramid” (Kandachar, 2008) to gain high market shares in the industry. At the same time, maximizing shared value by providing more safety products for the consumers while
Upside benefits: Using Toyota as a primary example, Esty and Winston argued that a company’s decision to “go green” will more likely pique the interest of the public and influence them to buy. Toyota’s successful hybrid Prius, named Motor Trend’s 2004’s Car of the Year, is define this argument (Esty and Winston 11). Toyota’s intentional deviation from the advertisement ploys used by competitors (focusing on size, speed, performance, ect.) and emphasizes on “green” delivered them record breaking profits. Toyota saw the beginnings of a change in wants in their consumers and took full advantage. Toyota’s, along with BP, willingness to adapt and “go green” put them above their competitors, making them appear more innovative and entrepreneurial.
Additionally, on a socio-cultural level, many consumers feel that restaurants partaking in green initiatives and operations are doing their part to not only help sustain the earth but also to conserving natural resources (Hu, Parsa & Self, 2010). “Going green” is not simply a trend in the food service industry but around the world and in all forms of business. Corporate companies consider “going green” as a sensible business strategy in building recognition for corporate social responsibility among consumers concerned with environmental conservation efforts. Lastly, technological initiatives such as Energy Star appliances (dishwashers, refrigerators, ice machines, etc.) and faucets that use less water must also be analyzed in their ecological conservation capability and weighed against their financial costs (University of Notre Dame, 2014).
In a world full of competitive markets, companies take many risks in order to make the most profit. Businesses strive to make money off of satisfying customer demands. In recent years, a heightened awareness for the environment has caused customers to demand more natural products. Knowing how a product is made can help the consumer make informed purchases. Conscious consumerism can help further reduce the human impact on the environment. In response to this demand, companies have increased their effort in the manufacturing sector to "go green" by producing items more sustainably. However, the task of differentiating the companies who are actually “going green” and those who aren 't, is difficult. Those companies who
In their studies, the found out that quality of the product was affect the most on consumer buying decision. Consumer will avoid buying the product even though the products is 100% green products because the product have low quality (Bei & Simpson, 1995). In (M. Laroche et al., 2001) research, they found out that consumer willing to spend more money on green products and did not feel troublesome to behave in an ecologically manner. They also stated that company and marketer are the important factor that will affect consumer to purchase green products because they can educate consumer on the important to purchase green product and change their lifestyle to go for eco-friendly
Carbon footprint essentially measures the total carbon emission produced by a company contributing to climate change (Swallow, 2009). After the trucking incident in Indonesia, E227 Global Solutions is determined to reduce its carbon footprint by 25% next year. By doing so, E227 Global Solutions will improve its public image while simultaneously protecting the environment. While efforts of “going green” can be seen with E227 Global Solutions’ local initiatives, it is crucial to do so within the company. Currently the company does not have a structured green initiatives for the internal work environment.
One major problem as far as companies using green marketing and why it isn’t working is that the relatively vague definition of green marketing leaves a lot of room for loopholes. Green marketing, by simply being defined as “the marketing of products that are assumed to be environmentally safe,” allows companies to take advantage of this idea even if their products are not the best example of green ones (McClendon 1). Most companies also don’t practice what they preach in such
others (Larsen, 2010). With a significant amount of influence over other consumers, these LOHAS consumers may also be able to encourage other sustainability segments of customers including naturalites, drifters, conventionals and unconcerned to also be customers. Therefore, by incorporating sustainable packaging into their business, these companies are taking the appropriate steps to satisfy what is presumably a significant number of their customers.