In the first of a series of articles dedicated to Re-framing the Green Consumers we assessed how in order to make ‘green’ meaningful to our consumers we have to make it ‘personal’.

So here it goes the question: what is personal for the consumers?

In a recent survey we found that the number one sustainability issue for North America is: “Feeling closer to family and friends.” That says something about the need to educate America on what sustainability really means and it is probably another reason why Facebook has today over 150,000,000 active users. The need to connect and to communicate is definitely a key driver in North America.

The word ‘closer’ in itself shows a sense of dissatisfaction relative to  the time people can spend with family and friends.

Another important driver is the improvement of the individual quality of life. From healthier solutions to more adequate wages, this is What is personal to our consumers.

From a marketing perspective we need to frame our efforts looking at how sustainability can allow consumers to achieve ‘personal’ goals, (e.g: Save money and or time, Easier to use, Healthier) then we will have a captive audience.

It’s important to remember that not all consumers are the same, once we move from the concept of Green Consumers to How to Green the Consumers then the old same rules of marketing apply: Know your target, Know it well!

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According to a recent survey by Forrester research, 84% of consumer product strategy professionals surveyed said that their companies have environmentally conscious or socially responsible products in development or on the market. The Orange County chapter of the American Marketing Association is hosting a learning event to explore the impact of green strategies on marketing professionals and marketing activities.

Drawing on case-studies and real life examples, attendees will be given a broad exposure to green marketing for product lines which are already perceived as green and those which are not.

VERT Brands CEO, Barbara Manconi, will be one of the key-note speakers expanding on greening the CPG industry.

Location: Gallup Inc - 18300 Von Karman Ave - 10th Floor - Irvine, CA

For more info http://orangecountyama.org/events.htm

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It is interesting to see how during though economic times not just our wallet changes to adapt to the situation, but apparently so does our vocabulary.

The most used words from advertising to news articles to bumper stickers are: Recession, Stimulus, Bail Out, Foreclosure, Incentives. Not that we didn’t know these words before, it’s just that we didn’t use them as often. especially not in the same sentence, like now. Now that consumers’ loyalty is bought in exchange of a month of bills paid or the chance to win gallons of gas.

The message is clear: the financial crisis has arrived and is affecting everybody, and while Governments are elaborating solutions to get us out of this mess as quick as possible, we are left to figure out how to balance our choices in order to maintain our quality of life.

Bottom line is the quality of life. Recession or not, we still want to have fun, laugh at times, entertain ourselves, spend time with our family and friends. These things will never change.

For us marketers, the question is: Where are people going to choose to spend their money to maintain their quality of life? Or, how can we offer consumers a good quality of life during these though economic times?

Looking at past recessions,  after a while consumers got tired of being reminded of how less disposable income they had, or being terrorized about the increasing line to collect unemployment. They started to look for diversion and distraction.

So I believe that companies that will invest in programs that will allow consumers to enjoy their life, lighten their hearts and improve their quality of life, will win their devotion.

Corporate sponsorships of cultural or artistic productions that allow consumers to enjoy them free or at fairly low prices; contests that offer the chance to win a family trip somewhere that  otherwise could not be afforded, these are the things we should look at.

After all, this is the meaning of Sustainability: Improving quality of life for the current generations and the ones to come. If we don’t take care of the current generations, there is no hope for the ones to come.

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As disposable income decreases, consumers are increasingly become more conservative with their spending, and try more than ever to get the most bang for their buck. They also want to deposit their money with companies they trust, think will be around for a while, and share their values.

Sustainability may actually be the best defense against market volatility during uncertain economic times.

A recent A.T. Kearney analysis reveals that during the recent economic slowdown, companies that show a “true” commitment to sustainability appear to outperform industry peers.

Companies with a history in green innovation have reaped the most benefits. Those who continue to make meaningful investments will continue to prosper, both in terms of business results achieved and public perception.

Sustainability is the answer also when it comes to how companies can save money. In many ways, “being green” or sustainable business is smart business that focuses on efficiencies in energy, waste, and processes. Efficiency equals cost savings.

Sustainable practices are also a good way to retain employees, that feel more connected and able to make a difference on a bigger scale through the company they work for. TNT created the Planet Me challenge that involves the whole company worldwide and their employees. Toyota is asking its costumers to share their ideas about sustainability with its new campaign WHY NOT. Clorox Green Works leader in the market one year after launch.

Despite the economic recessions consumers will continue to make purchasing decisions, sustainability and CRS programs could very much be the ones that will impact their choices.

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It is common business practice that during tough economic times companies cut budgets, people and initiatives. The faith of many marketing agencies is to see their client’s budget drastically reduced (in a good case scenario)  or to see their relationship put on hold (in a very common scenario).

So many people are losing their jobs and so many agencies are closing their doors that some of our friends at Twitter are keeping count with a dedicated twitter feed about agency’s layoff!!

The IPA’s latest Bellwether survey has found that in 08 annual marketing budgets were revised down to the greatest extent ever recorded in the survey’s nine year history. Hardest hit were budgets for main media advertising and ‘all other’ (includes PR, events sponsorship and market research).

That is one of the first mistakes businesses make during times of economic crisis. It’s time to get smarter about your marketing dollar and spend it to bring results. The key is to look at your marketing dollars as an investment NOT an expense. Use the customer knowledge that you have and implement SMART marketing during these times of financial distress.

Dare to be different in your marketing!!

Based on CI’s latest Shift Report #1 priority for North Americans is to feel more connected with family, friends, and community. Seventy-one percent want to know about the socially responsible behavior of brands they buy.

CSR doesn’t have to end in an annual report. Social Responsibility could be the key factor that will enable companies to navigate and win in these tough economic times. Tailored CSR programs can help companies win the hearts and minds of their customers and establish an unprecedent retention and loyalty.

Just some food for thought.

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Unemployment is at the highest rate in 14 years and it only looks like layoffs will increase as the economy worsens. The bottom-line is that budgets are being squeezed everywhere, including the public, private, and NGO sector. Non-profits are also feeling the pinch as philanthropic giving has dried up with the market in the tank.

During troubling times like this, many people go back to school to set themselves apart or after being laid off enter a new degree program to retrain themselves.

Even in this case sustainability seems to be the answer. In fact as the economy falls, the green one raises. In many ways, “being green” or sustainable business is smart business that focuses on efficiencies in energy, waste, and processes. Taking time to educate yourself and learn more about Sustainability and how to market Green could prove to be your best career move at this point.

Enrolling in online classes is an affordable and convenient way to get this done quickly. UCI will be offering the first online Green Marketing class this coming January. Completely online. You can even earn certification with the online Sustainability Leadership program.

For the Angelinos UCLA Extension will start in the Fall Quarter an on campus Green Marketing class. A great networking opportunity as well.

Learn as much as you can and remember to update new job abilities on your resume.

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Change the way you think, then change they way they act.

9 in 10 Americans say they are a “Conscious Consumer” and that they are concerned about the environment, but very often, aspiration doesn’t transform in shopping behavior.

Our agency is often approached with questions about “The Green Consumer” - Who is she? How do we reach him? What sites do they visit online?

The common belief is that The Green Consumer is part of a restricted number of people that belong to a movement rather than a movement (like global warming) that belongs to all of us.

So here’s my answer - every consumer is The Green Consumer.

They may just not know it yet. Every consumer can be prompted to make changes to help the climate crisis, to buy your product or donate to your non-profit. The key is where, when and how to approach them. So the question is not so much WHO is The Green Consumer, but rather, HOW do we Green The Consumer.

Here’s my answer - you must make your message personal.

Examples of successfully personalizing green include the Toyota Prius. According to a recent study from J.D Power & Associates “75% of people that buy hybrids do it for economic reasons, not environmental.”

Studies show that the top eco-friendly priority for consumers are  energy-efficient appliances. Why? Because energy-efficiency means saving money. Another case where personal successfully married environmental.

It is possible to induce eco-friendly consumer behavior when personal incentives meet environmental benefits. This is the task that companies and marketers are facing today. The need to extend the brand’s appeal beyond the deep “green” borders is an imperative.  While tomorrow, environmental responsibility may be a threshold to compete and not an added value, we must be realistic about what drives consumer behavior today in order to stop looking for The Green Consumer and start Greening The Consumer.

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As we have seen in recent weeks through voter polls, the record-setting voter turnout, and now the historic election of Barack Obama, the economy is a clear priority for Americans across the nation. In the midst of the imminent global recession and international efforts to salvage our economies, where do sustainability and corporate social responsibility lie in this equation? Is it an ideal of the past, or could it be the key to the future? In our current global climate, is it irrelevant, or more relevant than ever before?

According to the recent Best Global Brands 2008 report, companies from Honda to GE to BP have been earning a bump in their ratings due to significant investments in sustainable products and business practices. Among the top ten are companies that have significantly invested in sustainable practices or products, such as GE, Toyota, and Google.

According to Jez Frampton, global CEO of Interbrand, “The Best Global Brands 2008 ranking is a reflection of the global economy – the current credit crisis in the U.S., the growth of emerging markets and the increased emphasis on sustainability are all key trends that resulted in brands rising or failing on the list.” So even though consumers are deeply concerned with saving money, sustainability is still relevant and cannot be ignored. It continues to drive brand value across all sectors, but the key is smart sustainability.

Not only have these companies been earning a bump in their ratings, but a serious bump in their revenues as well. GE recently announced that revenues from its Ecomagination line hit $17 billion and rising, with sales likely to jump 21% in 2008.

Sustainability is critical in this new market for creating brand value, purchase loyalty, and influence—but it cannot be the main player in the equation. What will help ensure consumer loyalty and create brand value in this economic recession is not an emphasis on green, but an emphasis on the economic value of the product, which is augmented by the product or company’s sustainability.

But what do consumers think? How are they behaving?

While green products have been all the craze, market research has shown that mainstream consumers care more about the cost than about the environmental impact. Of course they are interested in the environment, but first and foremost is how the purchase impacts their wallet. This has been proven in products like Philips “Marathon” light bulb and the Toyota Prius, but it could not be more relevant in today’s economy.

Philips “Earth Light” light bulb, which emphasized the environmental benefits of the super-efficient bulb, had lukewarm reception, but when they changed the name to “Marathon”, primarily emphasizing the longevity of the bulb and secondarily emphasizing the environmental aspect, Philips saw a turnaround and boom in sales .

Another well-known example of a successful green product is the Toyota Prius. However, Toyota has learned that touting the Prius for it’s money saving efficiency has been far more important in winning over customers than advertising it for its “green” benefits, though the environmental aspect is far from ignored.

Bottom line: the financial crisis will create a ripple effect that not only calls for more regulation within the financial sector, but in all sectors of business as we will begin to see regulation regarding pollution, energy efficiency, waste, and recycling for business operations.

Staying ahead of the curve creates a competitive business advantage that can drive companies towards innovation while also creating value among share holders and consumers. It is also a bottom line argument—greening your operations saves money and creates value.

It’s a win/win situation.

A lot remains to be seen on how this global economic crisis will affect the green economy. But perhaps it might even do it some good. Could it be the force needed to weed through green-washing and over-saturation? Could it provide focus and direction for green products and companies forced to take a hard look at their product, mission, and operations? Will it trim the fat and produce a movement with real meaning and impact? Perhaps it will even be the key driver needed to pull us out of this global recession. Only time will tell. But let us not sit idly by…what will you do to get more green?

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May Hsu of GreenandGorgeous.

There’s been a lot of talk about what the future holds for the green movement in light of the current economic crisis.  We will be exploring this issue in the coming weeks with various posts looking at different industry trends, perspectives and insights. We thought, what better way to kick-off this exploration than looking at the star of the current crisis, the housing market. Over the past couple of years, residential green building has taken off. Not only do consumers see the economic benefits of low impact building and furnishing materials, but these products have become the pinnacle of modern design. We spoke with GreenandGorgeous’ May Hsu, Certified Green Building Professional and Ecobroker (and more, check out the end of the post for all of May’s accomplishments!) to get a glimpse into how the green housing market is fairing through her personal experiences with her clients.

1)    What are the biggest trends in “green” real estate?

Some of the cities in Southern California are going through a trend of urbanization to accommodate growth which has to consider environmental stewardship, population and job growth, public transit, and adoption of green building principles.  For example in my area of expertise, City of Pasadena consists of mix-use developments near the metro stations, condominiums are designed to have garden courtyards and commercial districts are designed and developed for pedestrians and social gatherings.  When I show a home or sell a home, I explain the benefits living in Pasadena neighborhoods where you can walk and bike to get almost anywhere, the beauty of its historic architectures, the LEED certified City Hall of Pasadena, so that they’re buying the location.  As for commercial real estate, adoptions of LEED standards have been mandated in municipal buildings and there’s increase awareness and incentives for greening commercial buildings.  Green residential real estate is still more in the luxury sector for single family homes above 2 million and town homes/condos priced from $800,000- $1,500,000.    Green certifications in the Los Angeles area are LEED (Leadership of Energy and Environmental Design), Green Pointed Rated, and ENERGY STAR.  Because 60%-75% new construction has ceased due to the economy, more “green” type of real estate would fall into retrofitting, remodeling, infill developments and apartments in the coming years. 

2)    If you could dispel one common myth consumers have about owning a green home, what would it be?

That green is more expensive.  To some extent initially it is in the residential sector.  My green team member Katrina Rosa LEED AP, says commercial green buildings will cost 0-2% more if it is implements before a pencil is drawn for a project.  Most projects are expensive because developers and architects realize that they have to make adjustments along the way.  Green doesn’t have to be expensive if implemented in the beginning.  It’s like cooking… I’m not great at cooking or following instructions, but let’s say I follow the instructions wrong (which I do often) and I have to add other ingredients to compensate taste or I just dump the whole thing and start over.  I buy more ingredients than I need, and dump the rest that I don’t use.  I had to spend more money on the ingredients, more time in preparation, and at the end I probably can’t sell it and I’ll eat it myself.  Most people don’t plan ahead of time in regards to design, construction, operations, maintenance, and marketing for a green home until problem comes up, then you’re just doing patch up work… can’t put lipstick on a pig. 

 3)    We know the housing market has been hit hard by the current economic crisis. How have your clients responded? 

There are definitely fear and uncertainty about the current market and clients have fear and uncertainty of buying a home or an investment.  Most buyers’ priority is whether if they afford their current mortgage, put food on the table, and pump gas in their cars.  I respond to what my clients needs are, if their main focus is affordability, I will find them a house that they can afford, then after close of escrow, suggest some cost saving ideas they can do like change faucets and light bulbs, insulate the home, buy energy star appliances, etc.  As a real estate professional I believe in the current market my job is to protect my client’s best interest, whether to green or not to green, solving their problems, and close deals.  People need to solve their problems in the present because they’re uncertain about their future.

4) Are they still willing to pay a premium on a greener home in order to reap future cost-savings?

Personally I don’t believe a greener home should be more expensive than an average home, affordability is part of sustainability.  In my take, I believe the market is as it is because it is “unsustainable”, people have mortgages they can’t afford, lives in homes that makes them sick, commutes longer than they need to, and work longer than they have to.  However the clients I have are more financially stable that don’t have these issues, are very interested in installing solar panels in their homes and/or retrofitting by using greener features. 

5)    Would you classify most of your clients as “greenies” -consumers that consider social and environmental issues in the majority of the purchasing decisions?

I have a variety of clients, from renters that wants to purchase a home, investors looking for apartments and shopping centers, to farmers looking for organic farms.  70% of my business is commercial however because of my spheres of influence which mostly are in some scale of being “greenies”, they mainly want a real estate that’s suitable for their home and/or business.  Majority of the time their decisions are based on the neighborhood, cap rate, return on investments, and future potential.  For example a current client of mine is looking for retail spaces to open a store for organic produce in Pasadena and surrounding areas.  They’re also looking for organic farms in the Inland Empire and a home nearby.  My team and I help with all aspect of real estate, the store, the farm, and the home.  And then suggest things to green those properties that are suitable for their business and their home, it’s really the whole home and business approach to green real estate.  Another client of mine wants to look for the ugliest house in my area, tear it down, and built a green home.  He actually has a bio-diesel dispenser in his garage and an organic garden, retrofitted his home very “green”, and so I think environmental issues is very important to him and his family.  

………

May Hsu’s mission is the help people fulfill their dream of sustainable home ownership and investments. Licensed in California, May joined Treeline Realty & Investments® and has successfully sold from condominiums to luxurious estates in the San Gabriel Valley. She is also a new homes consultant for developers for new home constructions which focus on market strategy, market analysis, contract negotiation, and meeting aggressive sales target.  

You can follow May on her site, GorgeousandGreen.net. Make sure to check out her regular series of vblogs on green homes and living, they’re informational and entertaining!

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