Cause-Marketing Pays Off for CPG Industry

July 5th, 2008

From Environmental Leader

Nothing indicates the growing hold “ethical marketing” has on advertising better than the concept’s growing embrace by Procter & Gamble and Unilever, the world’s two biggest advertising spenders, AdAge reports. At least eight P&G brands have active ad campaigns touting CSR efforts.

Much of the CSR effort is because it’s getting impossible to attract or retain marketers without a solid reputation for ethical marketing. But there’s another reason - it works. ARSGreen says, for example, that green ads in the ARS database do about as well as others on recall and persuasion.

ARS has found that negative ads usually fare poorly in tests, but negative green ads generally do about average and green ads that offer solutions can sometimes score exceptionally well.

Overall, ARS research indicates that sustainability messages can sway about two-thirds of people.

Approximately 50 percent of U.S. consumers consider at least one sustainability factor in selecting consumer packaged goods items and choosing where to shop for those products, according to a survey conducted by Information Resources, Inc.

And 72 percent of consumers say that they have purchased a brand because it supports a cause they believe in, according to the 2007 PR Week / Barkley Cause Survey.

Nearly 80 percent of America agrees that “it is important for companies not just to be profitable, but to be mindful of their impact on the environment and society,” according to the Natural Marketing Institute’s 2007 LOHAS Consumer Trends Database.

Some 85 percent of consumers around the world are willing to change the brands they buy or their consumption habits to make tomorrow’s world a better place, and over half (55%) would help a brand “promote” a product if a good cause were behind it.

Still, more than a few companies have encountered serious pitfalls in marketing themselves as greener or green. In fact, a recent study found that of 1,018 common consumer products ranging from toothpaste to caulking to shampoo to printers, randomly surveyed, 99 percent were guilty of greenwashing.

To make matters worse, seven in ten Americans either “strongly” or “somewhat” agree that when companies call a product “green” (meaning better for the environment), it is usually just a “marketing tactic,” according to a recent survey.

Regardless of this, sustainability initiatives are taking on greater urgency for consumer products companies as consumers, retailers, NGOs, and their own employees push for an increased focus on environmental and social issues, according to AMR Researches John Davies.

Want to reach moms online?

June 3rd, 2008

Social networking is becoming increasingly popular with the folks, but you must know the where and when that makes sense for your message

After reading that Anheuser-Busch headed to MySpace to reach parents with their new initiative to help prevent underage drinking (a partnership with National Fatherhood Initiative), I got to thinking about the evolution of the MySpace user and social network users in general.

Why does it make sense for Anheuser to head to MySpace with its campaign? It’s not just the 16 million 35 to 54-year old parents who visited MySpace in March 2008 (According to comScore Media Metrix, sited in the press-release), but it’s why these parents visited.

Here’s my theory, when Mom is “SpySpacing” little Suzie’s profile and finds pictures of her pounding a beer at her after-prom party, she’s very likely to click on the ad that reads something like, “Suspect Your Under-Aged Child is Drinking? Click Here for Tools, Advice and Support.” Anhueser knew who they were trying to reach and where this audience would be most receptive to their message.

The question to ask is, where is your audience and when will they be most receptive to your message?

The fact is, moms are online and they are a growing presence in the social networking scene. According to an eMarketer report, about 86% of moms are online, with 61% reporting they are online multiple times throughout the day, siting “conversational media- sites focused on blogging, chatting and socializing” as their 10th most popular type of site to visit. Add this to eMarketers’ estimates that adult participation in social networking will jump from 37% in 2007 to half of all adult internet users by 2011. Then throw in the fact that hobby-oriented communities are becoming increasingly popular among all US internet users, and what do we have? Besides the end of a long-winded train of thought? We have some compelling reasons to seek out moms on smaller, mom-related social networking communities that integrate blogging, idea sharing and chatting. And there is by no means a shortage of such sites, so based on the good or service you’re selling, you’ll want to narrow down these communities even more.

While larger social networking sites such as MySpace and Facebook may still offer an opportunity to reach parents when the message is appropriate, it is all about knowing where your audience is spending its time and when they would most like to hear from you. And for companies aiming to reach moms, this most likely means choosing specialized, targeted social networking sites like these.

If a tree falls down in the forest, and nobody is around to hear it, does it make a noise?

May 22nd, 2008

To those of us passionate about greening our world and providing for a sustainable earth, disheartening “natural” events tend to “hit home” even harder, letting us wonder how long will it take before people will realize that these are not just coincidences.

Take, for instance, the affects of Cyclone Nargis in Myanmar where heavy rains continued to fall early this week, slowing the transportation of necessary items.

Not too far away, China is hit with a 7.9 magnitude earthquake!

As these countries seek to sort through this mess, aid generously given by corporations with socially responsible outlooks has been increasingly helpful.

The Gates Foundation donated $1 million to relief efforts and UPS foundation pledged $200,000 for the Chinese cause.

Corporations with socially responsible attitudes really can bring change to faltering conditions but we wonder if these attempts to shed light on dispair really, truly enhance a corporate brand image, or are merely donations of goodwill.

Too often CSR efforts remain in companies’ CSR reports without ever reaching the final consumers. If people (and companies) talked more about responsibility people will learn and act.

Marketing here can play a key role to help spread the “good” word using inspirational strategies that tap into fundamental human values. And when creative marketing marries innovation than we have amazing results like in the case of $100 million raised by corporations in Europe and Asia via SMS for the Tsunami relief.

Doing “good” is contagious, and consumers are hungry for companies that will allow them to take action and make the world a better place.

So what are we waiting for?

Greening the Fashion Industry

May 22nd, 2008

5 Questions with…

Erin Barajas, Manufacturing Editor at California Apparel News

There has been a lot of discussion surrounding this month’s announcement that eco-friendly retailer Nau would be closing its doors. This got us thinking here at Vert, where the sustainable, green trend we have been seeing lately in the apparel industry is heading. If a team of all-star executives with a much buzzed-about innovative, eco-friendly concept was unsuccessful, what does this say about the future of eco-fashion? Companies seem to want to be part of the Green Rush, but it is still unclear how they will balance profit and sustainability. If you build it, will the consumers come? What does it mean to be green in the apparel industry and how do existing green lines hold up to these standards?

For our first installment of our 5 questions series, we spoke with Erin Barajas, Manufacturing Editor at California Apparel News, to gain some background info on “green” in fashion and see where the trend might be headed.

1) What does it mean to be ‘green’ in the apparel industry today?

In fashion “green” can mean just about anything. There is no official standard by which being “green” is judged. So, it can mean a T-shirt was made using organic cotton, but then later washed in a harsh chemical to make it super soft. Sometimes manufacturers tag garments as “green” if they used a low-energy or eco-conscious process to wash or produce them. “Green” is sometimes also used to describe garments that benefit the environment through their sale – if a certain portion of their proceeds are donated to environmental charities, for example. “Green” can also mean a garment is made from sustainable materials. It’s a very broad term and there is a movement in the apparel industry to clearly define what qualifies as green.

2) Are you seeing an increasing trend in “green” or “sustainable” clothing lines?

There is definitely a move to incorporate “green” and “sustainable” components among apparel brands across the board – from kids apparel to designer goods. Similarly, there seems to be more and more emerging brands that label themselves as “green” and strive to produce clothes with as little environmental impact. These brands tend to be more niche and contemporary – meaning they target a pretty specific demographic, sell at more exclusive retailers and come with a pretty hefty price tag. It’s these newer, smaller, up-and-coming brands that are agile enough to push the envelope and dedicate themselves to the eco cause.

3) How hard is it for an apparel company to be “green”?

It is a really complicated issue. Making apparel isn’t the most eco-friendly thing, but there are many opportunities in the production process to reduce our impact on the environment. These aren’t always easy, but they can make a difference. Sourcing fabric is the first step to being eco-friendly. There are organic fabric options - but they aren’t always the type designers want to use- so that means brands with eco-friendly aspirations have to find other “green” routes. Sometimes that can lead to the creation of new fabrics, which benefit the entire industry. There are also new washing and dyeing techniques that reduce the amount of chemicals and water used in those processes. Other brands are opting to produce locally in order to reduce their shipping needs. Some are going so far as to build vertically-integrated facilities that use solar power to run their machinery. Any little bit helps, but it can be challenging for brands to navigate their way around the “green” issue.

4) Who are some green pioneers?

One designer that stands out is Linda Loudermilk – a Los Angeles-based designer who not only uses eco-friendly fabrics but helps develop new high-end “green” fabrics. On the mass market level, Target and Rogan, a high-end eco-conscious brand, have collaborated on an environmentally-friendly collection that is getting much attention – not just for the fashion-forward nature of the designs but because of its decidedly “green” focus. Mass market retailers aren’t really known for their dedication to the environment, so this collaboration feels like a real first.

image from lasplash.com

Linda Loudermilk Designs hit the runway- photo from lasplash.com

5) Where do you see this trend going? Is there a future for green and sustainability in fashion?

I do see the “green” trend growing in the fashion industry, but I think we’ve reached a point where as an industry we have to define the term much more clearly. Consumers are much more savvy and the “green” term can’t just be a marketing tool. Brands are going to have to back their “green” labels with evidence or more clearly describe their eco efforts.

Welcome to Food for Thought

May 13th, 2008

Every one has questions.

Is “green” just going to be a trend or a new standard of practice for all industries? Is it about green marketing or marketing green?
Are profit and sustainability part of the same equation? Or will they always run parallel without ever touching?
Are hybrids the best solution for the environment or changing lifestyles and mind frames the most sustainable revolution? Are we really at the 11th hour or was that just a Hollywood sci-fi release?
As “green” grows across America so does the confusion as to what it really means. From corporations to agencies and marketers to NGOs to consumers, we are all in this together.
This Blog was born out of the ambition to give a voice to this confusion, to ask questions and find answers. To hear perspectives.
Every month we will ask 5 questions to different players in the industry and we will compare their answers. We will get the “word on the street” from regular consumers and influencers.
We might not have all the answers but we are going to find them for you.
Or at least we’ll give you something to think about itsome Food for Thought.

For more information please check out www.vertbrands.com or contact me at Barbara@vertbrands.com