Green Is Here To Stay. Are You Ready? It takes more than just features and benefits to elevate your company and its products above a roar of competing messages. In an evolving and turbulent marketplace, brands that achieve the greatest success connect with consumers emotionally.
Consider two rival carpet manufacturers. Company A sells its commercial-grade lines to established market channels by touting looks, durability and price. Sales and increases have remained modest through the years, but company executives won't tinker with market strategies during uncertain economic times.
Company B also makes commercial-grade carpet, but the similarities end there. Knowing that traditional carpet removal creates its own waste and pollution, they developed a patented process by which their used carpet could be renewed and then reinstalled at about half the cost of replacement. This reduced the need to make more new carpet, it eliminated the extra energy and raw materials needed to recycle carpet into something else, and it saved old carpet from clogging limited landfill space. While other companies talked about the concept of sustainability, Company B actually did something about it.
On the surface, it made little sense for the company to stem demand for its own carpet. Yet this initiative actually opened up additional sales channels that lay beyond its competitor's reach. Utilizing a new marketing platform, management began to promote its "Green" process through PR, collateral materials, trade shows, and advertising. It demonstrated how its eco-friendly carpet was also attractive, durable and cost effective. It backed up its environmental claims by certifying both product and process with established industry standards. And before long, it promoted itself as an organization defined by innovation and dedicated to the practice of sustainability.
More than half of all American adults say they would do more for the environment - if only they knew how.1 Company B offered these people - many of whom were existing and potential customers - a real way to act on their Green concerns and affect positive change. Which company stands to exceed its profit goals? And which one most closely mirrors your own?
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The market has begun to think differently about Green, and so should you. Eco-friendly, sustainable products are everywhere, from clothing and toys to the walls, windows and carpets that populate our homes. In particular, buildings have a profound impact on our natural environment, economy, health and productivity.
In the United States, they account for about one-third of all energy, water and materials consumption, and they generate similar proportions of pollution.2 As commercial and residential development continues to vie for a finite supply of natural resources, Green's prominent role in the design and construction specification process will continue to grow.
CONSIDER:
- Nearly $15 billion in Green buildings currently are in design or under construction in the U.S., representing 12 to 15 percent of total public construction and about 2 percent of private sector construction.3
- Green building construction has maintained a 75 percent growth rate per year for the past several years.4
- Governments and regulatory agencies on nearly all levels continue to introduce new incentives that make Green products and sustainable development more attractive at the outset.
- Studies find that more voters than not believe current environmental laws and regulations do not go far enough and are prepared to vote for stiff laws if necessary.5
Green is more than a movement. It's more than a trend. Green has taken hold nationally and internationally on public and private levels. Of course, this hasn't happened by accident, and it hasn't occurred entirely through corporate altruism. Yes, Green benefits the environment. But it also bodes very well for business. More and more architects, engineers, building owners and contractors now base their buying decisions at least partly on Green-influenced factors such as indoor air quality, raw material conservation, and energy and water efficiency. Why? Simply put, Green building products have become cost-effective to specify. Figure in long-term cost savings, and the economics get better still.
Even intangible benefits yield bottom-line results. Innovative Green strategies can help revitalize a company, renew its product lines and recharge the morale of its employees. A growing number of CEOs now recognize the link between environmental responsibility and more efficient - and profitable - business practices. They have empowered their marketing staffs to leverage Green in ways that help boost earnings and bolster their corporate images. As marketing professionals with Green experience can attest, environ-mental themes can greatly enhance advertising, public relations and promotional messages.
Many marketers now know that being the first to the shelf with an environmental innovation brings a distinct competitive advantage. For example, Philips Lighting, inventors of compact fluorescent lighting technology, stood ready when businesses and electric power utilities needed replacements for energy-guzzling incandescent bulbs. Management's foresight enabled the company to capture significant market share and retain it to this day. What will prove to be the turning point in your industry, and how will you react?
Looking Ahead
The pace at which Green continues to evolve is so rapid that in time, it won't be called Green - it will simply be the way to do business. It's not enough anymore for companies to refrain from damaging the environment, or simply to comply with environmental laws. Consumers expect more from manufacturers; they are compelling companies to demonstrate real and lasting environmental benefits in their products. Marketers who don't embrace Green to some extent could give a strong impression that their products are not environmentally sound. Momentum continues to build, but it's not too late. Companies without a clear Green strategy can still reposition themselves and their products in the marketplace to access new customer channels both here in the U.S. and abroad. Opportunities abound, so marketing professionals should plan for it - now.
The good news: You may already be Green and not even know it. That is, your company is probably further along the Green path than you think. Your products may already conform to established Green standards. Your people may already embrace Green practices such as on-site recycling and water conservation. Your manufacturing and distribution processes may already be Green-compliant.
This paper was developed to provide a broad overview for today's marketing executive with specific objectives:
- Explain how the term Green is generally defined within the broad building and interior design products category
- Detail the many benefits that Green strategies offer manufacturers
- Address misconceptions about Green and its financial impact on projects
- Lay out a comprehensive marketing checklist
- Disclose issues of critical importance to consider before moving ahead, and provide a listing of resources for additional information
- Describe how a Green strategy can be acted upon