Green brands

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Green brands are those brands that consumers associate with environmental conservation and sustainable business practices.

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Such brands appeal to consumers who are becoming more aware of the need to protect the environment. A green brand can add a unique selling point to a product and can boost corporate image. However, if a company is found or perceived to overstate its green practices its green brand may be criticised as greenwash. [1] [2]

Increase in green brands

Ethical consumerism has led to an increase in green brands. In the food and drink industry only 5 green brand products were launched in 2002, increasing to 328 in 2007 (Mintel global database). [3] [4]

Packaging

In the case of consumer brands, packaging can be a key element in communicating a green brand. This is because packaging communicates information to the consumer at the point-of-sale, and because of the environmental impact of the packaging itself.

Companies may claim sustainable packaging, recycled and/or recyclable material, or reduce excess packaging. [5] Packaging is of especially high brand importance when the packaging is part of the aesthetic appeal of the product and brand, as in the case of the cosmetics and toiletries sector. Packaging material may have to not only reinforce environmental credentials, but also communicate the high-quality and luxury image of the brand. [6]

In Europe concerns have been raised that consumers might be confused or mislead as a result of a recent increase in green brands. Because green brands can add a unique selling point there is little consistency from brand to brand. In the food and drinks industry it has been observed that companies are reluctant to use existing and widely recognised green logos, such as the mobius loop, because using their own makes the brand more easily distinguishable for the consumer. [3]

In Britain, the Advertising Standards Authority (ASA) warned consumers in mid-2007, that some "green" claims might not be authentic. The ASA stated that green claims have become noticeably more prevalent in advertisement, and has investigated and upheld several complaints regarding "unsubstantiated environmental claims". The ASA Director General has stated that "the ASA needs to see robust evidence to back up any eco-friendly claims". [7]

The ASA in Britain has also raised concerns that as awareness about climate change increase among consumers, the cases of unsubstantiated carbon claims (e.g. carbon emissions and carbon neutral claims) rises. [8] The ASA has upheld a number of complaints against energy companies, including Scottish and Southern Energy [9] car manufacturers, including Toyota, [10] Lexus [11] and Volkswagen, [12] and airlines, including EasyJet, [13] for misleading claims regarding carbon emissions and carbon neutrality.

Recent cases before the British ASA involved environmental claims such as "local". In December 2006 for example the ASA upheld a complaint against Tesco, where the company advertised British products as "local", which the ASA ruled to be misleading because in this particular case the consumers were likely to interpret “local” as referring to their immediate surrounding region. [14]

In August 2008 the British ASA ruled that Shell had misled the public in an advertisement which claimed that a $10bn oil sands project in Alberta, northern Canada, was a "sustainable energy source". The ASA upheld a complaint by the World Wide Fund for Nature about Shell's advert in the Financial Times. Explaining the ruling the ASA stated that "We considered that the Department for Environment, Food and Rural Affairs (Defra) best practice guidance on environmental claims stated that green claims should not 'be vague or ambiguous, for instance by simply trying to give a good impression about general concern for the environment. Claims should always avoid the vague use of terms such as 'sustainable', 'green', 'non-polluting' and so on." Furthermore the ASA ruling stated "Defra had made that recommendation because, although 'sustainable' was a widely used term, the lack of a universally agreed definition meant that it was likely to be ambiguous and unclear to consumers. Because we had not seen data that showed how Shell was effectively managing carbon emissions from its oil sands projects in order to limit climate change, we concluded that the ad was misleading" [15]

In the United States the Federal Trade Commission issues the "Green Guides" (last updated 2012) - environmental marketing guidelines. The guidelines give advice on the types of substantiation needed to support environmental claims, and give examples of claims that are to be avoided. The Federal Trade Commission has recognised that these guidelines need updating, as for example they currently contain no guidance on carbon neutrality, or the terms sustainable or renewable. The Green Guides do contain guidance on the term recyclable, recycled and biodegradable. [16]

The marketing and brand building experiences of many American green brands was documented in the book The Gort Cloud by Richard Seireeni, 2009. The gort cloud refers to the green community that provides support and a market to green brands.

Consumer demand

In recent decades[ when? ], there has been increasing interest in protecting the environment and sustainability when it comes to the world's markets. Due to global warming and the immense amount of environmental pollution attributed to factory manufacturing, the world has observed the rise in environmental issues. [17] In response to society’s concerns, this has seen an increasing number of companies adopting green brands to front environmental responsibility. In turn, products and services of green brands have recently been seen to have a perfectly inelastic demand because people are prepared to support and pay a higher price for a sustainable image. [17]

Through a consumer study taken in 1999, it was discovered that environmental issues are ranked above human rights, animal rights and welfare issues. [18] This information shows growing consumer demand of companies providing goods and services that preserve the environment and adopt a “green” approach to business. In a similar study, according to Iannuzzi (2011), a compelling global demand for “greener products” was demonstrated by over 60% of all countries studied, further demonstrating the desire of environmentally friendly green brands. In the study, environmental awareness was placed among the most vital product traits that consumers valued when purchasing, along with minimising toxic and hazardous substances, water preservation and recycling. [19] Green brands are ultimately more attractive to a lot of consumers nowadays, and committing to such sustainability is now essential to stay competitive.

Because concern for the environment is now a pivotal element in consumer decision-making, studies have found that the demand for green brands is higher than ever before. [20] A number of studies have also suggested that such a demand for greener products is due to consumers’ self-expressive benefits. When supporting green brands, customers believe this determines their role in society and this gives consumers satisfaction that they are perceived as having an eco-friendly attitude. [20] Various components have been stipulated as effects on conscious consumer behavior such as changing perspectives, awareness of environmental issues and greener products, and people’s perceived environmental contribution in society. Such factors help green brands to segment, define and target their market. [21]

An example of companies tackling environmental sustainability is the world’s largest retailer, Walmart. Walmart has undertaken a sustainability strategy that called on their suppliers to supply greener products because they were adamant their customers demanded “more efficient, longer lasting and better performing products”. [19] This green approach to business has put pressure on other companies to adopt similar practices.

The shift towards green brands is a result of numerous factors such as organic products being more accessible, fuel-efficient and eco-friendly automobiles becoming increasingly prevalent, and countless consumers looking to support the environment and portraying a green image. [22] The development of the greener approach to living has transferred into marketing and advertising and consumer markets, where enterprises are adopting this movement to attract customers and increase profits. [22]

Marketing of green brands

When it comes to marketing strategies of green brands, company officials want to understand the effects of being green has on their company and customers alike. Being a green brand alone differentiates a brand from the outset and opens new market opportunities. The Body Shop is an example of a competitive green brand that succeeds through understanding and providing the consumer demand for eco-friendly products and their sound environmental performance. [21] Green brands have also been profitable in niche markets where they can charge exclusive prices because conscious consumers are prepared to pay.

To combine environmental concern into marketing strategy is called ‘green marketing’ where companies use a range of undertakings to satisfy the consumer demand for environmentally friendly products such as revamping advertising, product adjustment, altering production operations, sustainable packaging and recycling. [21] By doing this, a green brand is creating further value, which is conveyed through their communication strategy. [23]

Green brands looking to secure their sustainable image within consumers minds must establish a philosophy that describes their use of renewable resources, minimising waste, supplying safe goods and services and "giving back to the environment". [24] Environmental concerns should also be included in marketing plans. After segmenting the market, green brands can make contact with their target market through integrated marketing communications (IMC), which conveys their value proposition to consumers. [24]

Where a clean and green image is communicated, brands should be associated with environmental claims that are truthful in how their business practices impact on the surrounding environment. [23] Such claims can be relayed through green labeling colour schemes, packaging, and “nature” images through advertisements as well as on the Internet. Consumers need to be wary of greenwashing through marketing strategies that does not reflect any green qualities in the product itself.

Another area of marketing a green brand is making use of functional and emotional strategies to position a brand in consumers’ minds. The functional characteristic approach delivers information on how a brand's products and services are environmentally friendly, which creates brand connections for buyers and powerful perception of the company. [23] Such information should include a company’s sustainable production process and ecological footprint in relation to its superiority to other competitors. The emotional approach for positioning focuses on emotions and alludes to a brand relationship with nature and the environment. [25] It has been found that emotional strategies build brand loyalty very effectively because consumers feel they are helping preserve the environment through supporting sustainably made products. [23] Wang (2016) states that overall, a mixed strategy of using both emotional and functional approaches to market a green brand generates favorable brand relationships and commitment from consumers. Most prosperous green brands are affiliated with either “alternative technology or a green corporate philosophy”. [25]

See also

Related Research Articles

<span class="mw-page-title-main">Greenwashing</span> Use of the aesthetic of conservationism for promotion

Greenwashing, also called green sheen, is a form of advertising or marketing spin that deceptively uses green PR and green marketing to persuade the public that an organization's products, goals, or policies are environmentally friendly. Companies that intentionally adopt greenwashing communication strategies often do so to distance themselves from their environmental lapses or those of their suppliers.

Ethical consumerism is a type of consumer activism based on the concept of dollar voting. People practice it by buying ethically made products that support small-scale manufacturers or local artisans and protect animals and the environment, while boycotting products that exploit children as workers, are tested on animals, or damage the environment.

<span class="mw-page-title-main">Environmentally friendly</span> Sustainability and marketing term

Environment friendly processes, or environmental-friendly processes, are sustainability and marketing terms referring to goods and services, laws, guidelines and policies that claim reduced, minimal, or no harm upon ecosystems or the environment.

A sustainable business, or a green business, is an enterprise that has a minimal negative impact or potentially a positive effect on the global or local environment, community, society, or economy—a business that attempts to meet the triple bottom line. They cluster under different groupings and the whole is sometimes referred to as "green capitalism". Often, sustainable businesses have progressive environmental and human rights policies. In general, a business is described as green if it matches the following four criteria:

  1. It incorporates principles of sustainability into each of its business decisions.
  2. It supplies environmentally friendly products or services that replace demand for nongreen products and/or services.
  3. It is greener than traditional competition.
  4. It has made an enduring commitment to environmental principles in its business operations.

Eco commerce is a business, investment, and technology-development model that employs market-based solutions to balancing the world’s energy needs and environmental integrity. Through the use of green trading and green finance, eco-commerce promotes the further development of "clean technologies" such as wind power, solar power, biomass, and hydropower.

Sustainability advertising is communications geared towards promoting social, economic and environmental benefits (sustainability) of products, services or actions through paid advertising in media in order to encourage responsible behavior of consumers.

Green marketing is the marketing of products that are presumed to be environmentally safe. It incorporates a broad range of activities, including product modification, changes to the production process, sustainable packaging, as well as modifying advertising. Yet defining green marketing is not a simple task. Other similar terms used are environmental marketing and ecological marketing.

<span class="mw-page-title-main">Ecover</span> Belgian cleaning product manufacturer

Ecover is a Belgian company that manufactures ecologically sound cleaning products, owned by S. C. Johnson & Son since 2017.

Sustainable advertising addresses the carbon footprint and other negative environmental and social impacts associated with the production and distribution of advertising materials. A growing number of companies are making a commitment to the reduction of their environmental impact associated with advertising production and distribution.

<span class="mw-page-title-main">Sustainable fashion</span> Reduction of environmental impacts of the fashion industry

Sustainable fashion is a term describing efforts within the fashion industry to reduce its environmental impacts, protect workers producing garments, and uphold animal welfare. Sustainability in fashion encompasses a wide range of factors, including cutting CO2 emissions, addressing overproduction, reducing pollution and waste, supporting biodiversity, and ensuring that garment workers are paid a fair wage and have safe working conditions.

<span class="mw-page-title-main">Green company</span> Acts, or claims to act, in a way which minimizes damage to the environment

A green company, also known as an environmentally friendly or sustainable business, is an organization that conducts itself in a way that minimizes harm to the environment. Examples of these actions may include the conservation of natural resources, efforts to reduce carbon emissions, a reduction of waste creation, and support of ecological conservation. Green companies often implement environmentally responsible practices across their entire value chain, from sourcing raw materials to manufacturing processes and distribution.

Green hosting or eco-friendly hosting is Internet hosting that involves strategies to reduce the environmental impact of their activities. These may include the increased use of renewable energy, planting trees, plants, and grass around and over data centers, and more day-to-day activities such as energy conservation and the use of energy-saving appliances.

<span class="mw-page-title-main">Sustainable packaging</span> Packaging which results in improved sustainability

Sustainable packaging is the development and use of packaging which results in improved sustainability. This involves increased use of life cycle inventory (LCI) and life cycle assessment (LCA) to help guide the use of packaging which reduces the environmental impact and ecological footprint. It includes a look at the whole of the supply chain: from basic function, to marketing, and then through to end of life (LCA) and rebirth. Additionally, an eco-cost to value ratio can be useful The goals are to improve the long term viability and quality of life for humans and the longevity of natural ecosystems. Sustainable packaging must meet the functional and economic needs of the present without compromising the ability of future generations to meet their own needs. Sustainability is not necessarily an end state but is a continuing process of improvement.

<span class="mw-page-title-main">Jacquelyn Ottman</span> American branding consultant (born 1955)

Jacquelyn A. Ottman is a New York City-based consultant specializing in sustainability strategy, green marketing, and eco-innovation. She is the author or co-author of four books on green marketing, including The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding. She has advised Fortune 500 companies, including GE, Johnson & Johnson, and Procter & Gamble, along with the United States Environmental Protection Agency Energy Star Label She blogs at GreenMarketing.com and at WeHateToWaste.com.

Sustainability brands are brands that undertake sustainable practises in the workings of their business and champion them.

Sustainable products are products who are either sustainability sourced, manufactured or processed that provide environmental, social and economic benefits while protecting public health and environment over their whole life cycle, from the extraction of raw materials until the final disposal.

Eco-friendly dentistry aims at reducing the detrimental impact of dental services on the environment while still being able to adhere to the regulations and standards of the dental industries in their respective countries.

Green consumption is related to sustainable development or sustainable consumer behaviour. It is a form of consumption that safeguards the environment for the present and for future generations. It ascribes to consumers responsibility or co-responsibility for addressing environmental problems through the adoption of environmentally friendly behaviors, such as the use of organic products, clean and renewable energy, and the choice of goods produced by companies with zero, or almost zero, impact.

<span class="mw-page-title-main">Frosch (brand)</span> German brand of cleaning products

Frosch is a trademark for cleaning and care agents made by the Mainz-based company Werner & Mertz GmbH. Introduced in 1986, the brand family comprises over 80 products, including multi-purpose cleaning agents, scouring agents, glass cleaners, special cleaners, toilet cleaners, dish-washing liquid and laundry detergents. Hand soaps, shower gel and air fresheners are new additions to the portfolio. By launching Frosch, the company complemented its current product portfolio by adding a brand with a clear focus on ecological aspects in addition to efficiency. The brand is the company's largest source of revenue. Werner & Mertz also engages in sustainability drives under its own name. Surveys by Reader's Digest indicate that Frosch is – from a consumer perspective – among the most trustworthy brands. Werner & Mertz generated revenues of €455 million in 2019 and is forecast to reach €525 million in 2020.

Mayanna Berrin v. Delta Air Lines Inc. is an ongoing civil action lawsuit brought by the law firm Haderlein and Kouyoumdjian LLP against Delta Air Lines. In their complaint, the plaintiffs argue that Delta Air Lines' advertising claim of carbon neutrality is false and misleading, in violation of California state advertising statutes.

References

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  2. ↑ "'Greenwash' is losing its shine". BBC NEWS. 2008-02-18. Retrieved 2023-05-16.
  3. 1 2 Crowley, Laura (2008-04-17). "Green logos create brand tension". bakeryandsnacks.com. Retrieved 2023-05-16.
  4. ↑ Launois, Annie (2008-04-10). "Consumers go for green products, Mintel". confectionerynews.com. Retrieved 2023-05-16.
  5. ↑ "The future of green packaging". Creative Bloq. 2008-04-29. Retrieved 2023-05-16.
  6. ↑ "Green agenda takes centre stage in beauty sector". Packaging Today .
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  8. ↑ Practice, Committee of Advertising (2009-01-09). "Green ad claims on the rise as the climate debate heats up". asa.org.uk. Archived from the original on 2009-01-09. Retrieved 2023-05-16.
  9. ↑ "Scottish & Southern Energy Group". Archived from the original on 2008-11-22. Retrieved 2008-06-07.
  10. ↑ Toyota (GB) plc Archived 2007-08-12 at the Wayback Machine
  11. ↑ "Lexus (GB) Ltd". Archived from the original on 2008-04-14. Retrieved 2008-06-07.
  12. ↑ "Volkswagen Group UK Ltd". Archived from the original on 2008-12-04. Retrieved 2008-06-07.
  13. ↑ "EasyJet Airline Co Ltd". Archived from the original on 2008-04-13. Retrieved 2008-06-07.
  14. ↑ "Just popping down your local It might be further than you think". Archived from the original on 2009-01-09. Retrieved 2008-06-07.
  15. ↑ "Shell reprimanded by ASA for 'misleading' advert". TheGuardian.com . 12 August 2008.
  16. ↑ "Monadnock Paper Mills – Monadnock Issues Third Edition of Field Guide". Archived from the original on 2008-07-11. Retrieved 2008-06-17.
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  19. 1 2 Iannuzzi, Al (2016-04-19). Greener Products. CRC Press. doi:10.1201/b11276. ISBN   978-1-4398-5499-0.
  20. 1 2 Ahmad, Anees; Thyagaraj, K. S (2015-12-25). "Consumer's Intention to Purchase Green Brands: the Roles of Environmental Concern, Environmental Knowledge and Self Expressive Benefits". Current World Environment. 10 (3). Enviro Research Publishers: 879–889. doi: 10.12944/cwe.10.3.18 . ISSN   0973-4929.
  21. 1 2 3 Baker, M. J. (2003). The Marketing Book (5th ed.). Oxford, England: Butterworth-Heinemann.
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