Not Easy Trying To Be More Eco-Friendly Is It
I just read a an article by Joe Castaldo, Castaldo wrote about P&G and how Proctor and Gamble are learning the hard way that it isn't easy trying to be more eco-friendly.
Marketing a green message is tough these days. Consumers are cynical and with watchdog groups like Enviromedia's Greenwashing Index are ever vigilant. Companies in North America now have to contend with guidelines for marketing environmental messages, more so in Canada with guidelines by the Competition Bureau and the Canadian Standards Authority. Greenest consumers are likely to be more suspicious about a company's claims, an even greater obstacle is that most people just don't care all that much - at least, not enough to shell out more money for a greener product. 
Proctor & Gambles own research shows that only 10% of North Americans consumers will accept such a trade-off for a higher price or performance decrease for an environmental benefit. Len Sauers, P&G's vice-president of global sustainability says "We're about making a meaningful difference in sustainability in terms of our products, so we target the mainstream consumer". As a result P&G's focus is on developing what Mr. Sauer's calls "sustainable innovation products", those that are better for the environment than their predecessors, but come in at the same price and quality. P&G plans to develop and market $20 billion worth of such products over the next 5 years. "The strategy of having environmentally friendly attributes without making a big fuss about it is actually a sensible one, because it doesn't illicit a negative response. It's very hard for something to be truly environmentally neautral, and people who are the most sensitive to environmental claims know that," says Eileen Fischer, a marketing professor at York University's Schulich School of Business in Toronto.
10 years ago the company launched a granular compacted laundry detergent with the same cleaning power but required only half the amount of powder, cutting down on packaging. The product bombed. According to P&G The product didn't work to the point that it had significant impact on their business. Lee Bansil, director of external relations for P&G Canada says consumers didn't quite understand the benefits, Bansil also added that "We all grow up in a society where we have the doctrine that bigger is better". P&G pulled the product from the shelf's and they were re-introduced this year after consulting with an expert advisory panel consisting of sustainability thought leaders. "We didn't make the product better before, this time around one of the big differences was the product was greatly improved. It wasn't just compacted; it was actually a better cleaning product. They also began a non-branded awareness campaign about the benefits of compacted detergent a year before relaunching it in North America. P&G still sells the regular granular version of its detergent, along with the traditional varities of Charmin and Bounty. "That's what the consumers tell us they want,' says Bansil, adding the company is looking at more opportunities to reduce its packaging .
Bottom line, P&G is not going to do anything to hurt it's bottom line. A slide in a company PowerPoint presentation on sustainability says it best: "When it comes to Sustainability, the consumer is boss."
Proctor & Gambles own research shows that only 10% of North Americans consumers will accept such a trade-off for a higher price or performance decrease for an environmental benefit. Len Sauers, P&G's vice-president of global sustainability says "We're about making a meaningful difference in sustainability in terms of our products, so we target the mainstream consumer". As a result P&G's focus is on developing what Mr. Sauer's calls "sustainable innovation products", those that are better for the environment than their predecessors, but come in at the same price and quality. P&G plans to develop and market $20 billion worth of such products over the next 5 years. "The strategy of having environmentally friendly attributes without making a big fuss about it is actually a sensible one, because it doesn't illicit a negative response. It's very hard for something to be truly environmentally neautral, and people who are the most sensitive to environmental claims know that," says Eileen Fischer, a marketing professor at York University's Schulich School of Business in Toronto.10 years ago the company launched a granular compacted laundry detergent with the same cleaning power but required only half the amount of powder, cutting down on packaging. The product bombed. According to P&G The product didn't work to the point that it had significant impact on their business. Lee Bansil, director of external relations for P&G Canada says consumers didn't quite understand the benefits, Bansil also added that "We all grow up in a society where we have the doctrine that bigger is better". P&G pulled the product from the shelf's and they were re-introduced this year after consulting with an expert advisory panel consisting of sustainability thought leaders. "We didn't make the product better before, this time around one of the big differences was the product was greatly improved. It wasn't just compacted; it was actually a better cleaning product. They also began a non-branded awareness campaign about the benefits of compacted detergent a year before relaunching it in North America. P&G still sells the regular granular version of its detergent, along with the traditional varities of Charmin and Bounty. "That's what the consumers tell us they want,' says Bansil, adding the company is looking at more opportunities to reduce its packaging .
Bottom line, P&G is not going to do anything to hurt it's bottom line. A slide in a company PowerPoint presentation on sustainability says it best: "When it comes to Sustainability, the consumer is boss."
