Ad Age: Green-Marketing Revolution Defies Economic Downturn

Source: Datamonitor's Product Launch Analytics

Source: Datamonitor's Product Launch Analytics

This week’s Advertising Age features a very interesting and timely (Earth Day is this week) article, titled “Green-Marketing Revolution Defies Economic Downturn.” The writer, Jack Neff, starts off the article with the following statement: “Green marketing is turning out to be surprisingly recession-proof.”

Neff points to product launch and sales data that indicate that even during the recession, consumer-packaged goods manufacturers are seeing significant revenue growth for their green offerings.  In fact, according to Seventh Generation CEO Jeffrey Hollender, his company’s sales were up 50% last year and 20% in March 2009 versus March 2008.

The article continues that as opposed to previous recessions, during which sales of green products “had the air taken out of them,” sales of green products have remained stable (and are still growing) in the current downturn.

Neff includes some interesting tips for green marketers at the end of the article, and I would certainly recommend giving it a quick read.

Here’s a link to the full article.

WSJ: Interesting report on eco-logos and green marketing

Courtesy Wall Street Journal.  Illustration by Michael Witte.

Courtesy Wall Street Journal. Illustration by Michael Witte.

The Wall Street Journal has an interesting report in Thursday’s issue titled: “As Eco-Seals Proliferate, So Do Doubts.” The article discusses how a number of unregulated organizations that purport to verify “green” product claims have sprouted up, which only makes buying these products even more confusing for businesses and consumers.

Here are the two main points that the writer makes:

1) The U.S. Government may need to oversee the creation of Federal green marketing standards, similar to what the U.S. Department of Agriculture has done with organic foods.

2) Eco-seals that are verified by reputable third-party organizations are more reliable.  One example the writer provides is a Canadian-based organization, Ecologo.

I couldn’t agree more.  I have been pushing my industry and my clients to be transparent about green marketing claims, especially because consumers are smart and see through “fuzzy” and unsubstantiated claims that organizations make.  This is why when a client uses eco-friendly papers in their marketing programs and wants to explain the environmental benefits derived from these choices, they should not use a paper company’s calculator to arrive at these statistics.  Rather, they should use the paper calculator created by Environmental Defense, a leading non-profit dedicated to the environment.  I have written about this resource a number of times over the past several years.

I also believe that the Federal government should step in and begin to regulate green product claims.  I know this will be a difficult process, as it would be impossible to apply the same standards across all industries.  Nevertheless, it is important to start now, as it will help companies and individual consumers to better navigate the increasingly-complicated product landscape.

Here’s a link to the full article.

Trendwatching.com’s 12 eco-trends to watch

Hey all – I wanted to share this interesting briefing on Trendwatching.com about eco trends that present exciting opportunities for marketers and entrepreneurs.

Trendwatching refers to these opportunities as an eco-bounty, and they provide the following definition: “ECO-BOUNTY refers to the numerous opportunities, both short and long term, for brands that participate in the epic quest for a sustainable society. Some of these opportunities exist despite the current recession, others are fueled by it, not in the least because of new rules and regulations. Downturn-obsessed brands who lose their eco-focus will find themselves left out in the cold when the global economy starts recovering.”

Have a great weekend!

Key findings from Direct Marketing Going Green panel

875191As I wrote before, I was on a panel titled “DM Going Green – Separating Fact and Fiction” on January 13.  The session, which was organized by the New England Direct Marketing Association, was interesting and the conversation was lively.

Floyd Kemske, who serves as Editor of NEDMA News and Creative Director at Amergent, wrote up a nice summary from the event.  As it is not online yet, I’m pleased to include select portions of the piece below:

****From NEDMA News****
The session, moderated by Mariah Hunt, Senior Production Manager at Digitas, featured four practitioners from the front lines of the campaign for industry sustainability.

Each panelist provided a unique perspective on sustainability, its achievability, and its benefits. Ben Grossman, Director, Green Marketing & Sustainability Practice, Grossman Marketing Group , for example, has been instrumental in developing a model program for his company, which offsets 100% of its energy use through an organization called Renewable Choice Energy. This allows Grossman Marketing’s customers to credibly claim they make their printed collateral with certified wind power. In addition, Grossman has replaced petroleum-based window material in its window envelopes with corn-based material, which is both compostable and recyclable. Although the corn-based windows cost more, Grossman said, the company absorbs the premium so its customers pay the same as if they’d bought the petroleum-based ones.

According to Grossman, the company’s sustainability practices confer benefits in terms of increased sales, reduced costs, and more productive recruitment. But he advised the audience that sustainability isn’t something you can just say you do. “Customers are smart,” he said, “and they are conversant with the issues. They can discern a real commitment.” Transparency is important, he said. “Give people a way to dig down and investigate.” If you work at it and you are sincere, he said, you can use sustainability as a competitive advantage.

Mary McCormick, Senior Account Manager, Neenah Paper Inc., said her company was committed to manufacturing products with high post-consumer waste content, FSC-certification, and reduced carbon footprint. Before delving into some of the technical aspects of sustainable paper manufacture, she may have confirmed Grossman’s assertion about competitive advantage when she noted that the invitation for President Obama’s inauguration was printed on Neenah paper, chosen because of the company’s sustainability practices.

FSC certification, which is the premier paper certification standard, guarantees a chain of custody for pulp products from the harvest site to the finished product. It doesn’t simply guarantee sustainability. It also addresses social issues (e.g., rights of indigenous peoples) and forest recovery as well. Neenah’s website offers a calculator you can use to find the environmental savings you will achieve by using FSC papers. Neenah has also developed no-new-tree papers, including one manufactured from sugar cane bagasse.

The panel presentations were followed by a lively discussion in which some members of the audience sought proof that sustainability practices could increase sales. None of the panelists could cite such proof, but Ben Grossman stepped up and said that if anyone in the room wanted to conduct a test to determine whether a legitimate green logo would boost response to a mailing, his company was willing to subsidize it. There’s a man who backs up his belief in sustainability!

Excellent Green Design Newsletter

header1Graphic Design USA, a news magazine for graphic designers and creative professionals, publishes two e-newsletters per month.  One of them is entirely focused on green design issues.  Here’s a link to the latest issue. The newsletter is free and features a wide range of interesting news snippets about paper, industry trends, etc.  It’s worth a quick read every month.  Here’s a link to past issues as well as a sign-up form at the bottom of the page.  Enjoy!

Financial Times: Why sustainability is still going strong

financialtimes_logoA friend of mine sent along the following link to a piece written by Duke professors Daniel Vermeer and Robert Clemen, about the importance of a refined sustainability strategy during this economic crisis.  Vermeer is the executive director of the Corporate Sustainability Initiative at the Duke Fuqua School of Business, and Clemen is professor and faculty director of the Corporate Sustainability Initiative.

The piece, published last Thursday in the Financial Times, is titled “Managing in a downturn: Why sustainability is still going strong” and is a must-read.  Vermeer and Clemen’s main point is that given the current difficult business climate, organizations will understandably make changes to their sustainability and corporate governance efforts.  However, they warn against doing the bare minimum, as those organizations that fail to show a “commitment will find themselves at risk when the economic conditions improve.”

They make some interesting points, introduce some interesting people like Marcus Roberts, especially in the conclusion, and I wanted to make sure all of you saw it.  Here’s the link to the full story.

News roundup – it’s about the wind

As I have written in the past, renewable energy is critical to our nation’s future – not only from a carbon emissions perspective but also for national security reasons.

My firm’s adoption of and support for renewable energy (we offset 100% of our energy with Green-e certified wind power through Renewable Choice, the firm that both Whole Foods and Burt’s Bees work with to offset their energy usage) has enabled us to offer products and services to our clients that have helped them support the environment, without adding any extra cost to their respective bottom lines.  Because my firm made the commitment more than two years ago to absorb the additional cost of these wind power credits, we have been able to grow our business in turbulent times and attract new and progressive clients.

I am pleased to share two exciting news pieces:

  1. A PDF of an article published last month by the American Marketing Association’s Marketing News magazine (a live link is not yet available).  The staff collected a range of good and bad marketing campaigns from 2008 and asked various marketing professionals to chime in.  They asked me to comment on the marketing of T. Boone Pickens’ wind power initiative (which is now on hold due to economic concerns) – the news brief is on page 1 of the attachment.
  2. An article in The Somerville News (a newspaper in my company’s home market) about recent successes my family firm has had as a result of our green initiatives (one correction I need to make is that the reporter spoke with my brother, David, but refers to him as Steve, who is my father and president of the company).

In this increasingly difficult business climate, I can certainly attest to the importance of corporate sustainability and social responsibility programs as a means of differentiation from one’s competition (not to mention the right thing to do!).  Although organizations are looking harder for lower prices than they have ever done before, they are also very much interested in working with a partner who they respect and can learn from.  If your company does not have sustainability initiatives in place now, I implore you to start thinking about them.  Not only can they help you generate interest from prospective clients, but they can also help you save money (on energy, water, etc) – which is now more important than ever.

Cape Wind one step closer to approval

logo_01Cape Wind, the nation’s first proposed offshore wind farm, moved one step closer to final approval on Friday, when the Minerals Management Service (MMS) issued a favorable final review of the project.

Please click here for a story in the Boston Globe.

Please click here for the full report from MMS.

Support for Cape Wind is broad in Massachusetts; in fact, the project has helped create awareness of, and demand for marketing materials made with renewable energy.  I hope this project moves to construction, as it would provide much-needed electricity to Massachusetts, and would serve as a shining example of renewable energy ingenuity for this region.

Sustainability as a marketing strategy

Below is a quick interview with Don Carli of the Institute for Sustainable Communication, during which he discusses sustainability as a marketing strategy for growth and provides some insights into where the green movement is headed.  Here are his main points:

  • Sustainability is becoming more top-of-mind for companies
  • Executives see sustainability as a growth strategy, especially in an economic downturn (so do I!)

Boston Business Journal article on my firm – It pays to be green

flagThe Boston Business Journal has been publishing quick focus pieces on specific Boston-area businesses and the efforts they are taking to remain resilient during the recession.  My firm was pleased to be spotlighted.  Below is the article that appears in the Friday, 1/9/09 edition of the newspaper (I am also including a link):

****

Marketer: It pays to be green

Grossman Marketing Group plans to focus its sales pitch on companies looking to be — and save — green.

That is because most businesses do not believe that using environmentally friendly marketing products can actually be cheaper than traditional marketing materials, said Steve Grossman, president of Grossman Marketing.

“Most people still have a hard time getting around the fact that green products can be cost-comparable,” Grossman said. “We want to lead more aggressively the no-extra-cost factor.”

Overall, the 100-year old print and marketing-materials company hopes its green push will stave off the effects of the recession, as direct-mail spending has dropped off considerably during past downturns. Envelope and direct mail makes up about 40 percent of Grossman Marketing’s business and grew nearly 20 percent in 2007.

The company also plans to step up the consulting services offered by the business, providing sustainability and marketing advice to its clients at no charge.

“It strengthens the relationship with our customers. They see us as their partners to advance their sustainability initiatives, but also, especially in the short term, to reduce their cost basis,” Grossman said.

Growing the green marketing business is just one part of Grossman’s three-pronged strategy for this year. With its recent investment in Consolidated Marketing Solutions Inc. of Massachusetts, based in Wilmington, Grossman Marketing is stepping into the online branding and marketing business.

“They want to do business with like-minded companies,” Grossman said.

— Jackie Noblett

****

Here’s a link to the article: http://boston.bizjournals.com/boston/stories/2009/01/12/story14.html