Green Street

It’s one thing for a coffee bar chain to support the environment. It’s quite another for a bank to do it.

Yet HSBC did just that in a recent campaign for paperless banking. Any new checking customer who paid three bills online received a green kit filled with coupons and other goodies.

Going forward, they can have a tree planted in their name by the National Arbor Foundation (a group that has become very popular with marketers).

And there’s more to come, for HSBC is one of the countless firms that have discovered that green is red hot.

Next year, there will be green tours and a green trade show. And brands will rename themselves to prove that they are supporting the environment.

“Every company wants to jump on the bandwagon,” says Eric Robertson, marketing manager for JWT Worldwide. “To not do it means you are environmentally challenged.”

None of this is happening in a vacuum. A recent survey by Landor Associates found that a third of all consumers in the U.S. and U.K. think of themselves as “green.” Only a few years ago, many people weren’t interested in this idea.

What caused this turnaround?

One factor could be the award-winning documentary by former Vice President Al Gore: “An Inconvenient Truth.” Another may be the steady hyping of the cause by celebrities like Leonardo DiCaprio and Matt Damon.

“It’s been a perfect storm,” observes Russ Meyer, chief strategy officer of Landor Associates. “You have Al Gore and his movie, Hurricane Katrina, the weather patterns and rising gas prices.”

The result? Experts predict that total green sales will this year top the near-$250 billion reported in 2006.

But this trend is based on “more than just making registers ring,” says Larry Deutsch, managing director of OgilvyAction. “It’s really about having actual relationships you can deepen over time.”

Green marketing is “very much a consumer-driven phenomenon,” agrees Tülin Erdem, Leonard N. Stern professor of marketing at New York University. “Businesses are trying to explore it because there is an interest in the market.”

PIONEERS

Green marketers fall into several categories. Some are reactors. Others are environmental pioneers.

Take Starbucks. It mentioned its devotion to the environment in its mission statement in the 1990s.

Since then, the firm has mapped out its carbon footprint and introduced the first paper cup containing post-consumer, recycled material.

“It’s not about being green,” says Ben Packard, Starbucks’ director of environmental affairs. “It’s about expressing something the company has felt strongly about.”

It’s also about marketing. Starbucks recently launched an online game with Global Green USA to teach customers about global climate change.

The Planet Green Game can be found at www.PlanetGreenGame.com.

More than 100,000 people have played since the April launch, with visitors spending an average of 11 minutes apiece on the site, says Stephanie Bittner, Starbucks’ director of brand advertising and communications. The game will be up for about a year.

What’s more, Starbucks has started a cause-marketing campaign using its iconic green umbrellas. Consumers can bid on umbrellas signed and painted by celebs like America Ferrera, Chad Lowe and Lance Bass.

Was it worth it? To date, this campaign has raised $5,000 for Global Green USA — hardly a fortune, but Starbucks insists that it is on par with expectations. And the chain plans to donate an additional $25,000 to the group.

“This cause is important to many of our consumers, and we wanted them to know that it’s important to us,” says Starbucks spokesperson Tricia Moriarty.

She adds: “We have legitimate reasons to be in the space. We sell an agricultural product. It behooves us to get people talking about climate change.”

But there may be an even more important reason. Moriarty concedes that “our CSR efforts are key components to our financial success as a publicly traded company.”

GREEN WINE

Then there’s Brown-Forman Corp., which recently launched a $1 million green campaign for its Fetzer Vineyard wine brand.

Like Starbucks, Fetzer Vineyard was recycling and practicing water management years ago. But “we never talked about [our efforts] with consumers,” says John Tichenor, group brand director for Brown-Forman’s wine products. “We feel now is the right time to talk about what Fetzer is doing.”

The new campaign is built around a 30-city tour. Stopping at food and wine festivals and garden shows, Fetzer will hand out samples in a tent and talk about its sustainability practices (measures that save companies money while protecting the environment).

The first 100 visitors at each location will receive an organic cotton bag containing literature on earth-friendly practices. And, yes, tree seedlings will be mailed to them from the National Arbor Day Foundation.

In addition, Fetzer will donate $1 to the foundation for every person who provides personal data (with a ceiling of $20,000). Finally, the brand is running a sweepstakes for a chance to win a hybrid car.

GREEN BRANDING

Some firms are creating new brands to display their green credentials.

For example, The Home Depot has grouped more than 2,5000 environmentally friendly products, everything from natural insect killers to programmable thermostats, into its new Eco-Options line. To support the launch, the chain distributed 1 million free compact fluorescent light bulbs on Earth Day.

“The Home Depot has had a long standing commitment to the environment and sustainability,” explains spokesperson Jean Neimi.

Then there’s HSBC. The banking chain has already distributed tens of thousands of bags as part of its HSBC Online Bill Pay campaign. The other items include coupons, light bulbs and magazine subscriptions.

“This campaign isn’t about us,” says Nicole Rousseau, vice president of marketing for HSBC. “It’s more about how we can help our customers help the environment.”

NEWBIES

And like Starbucks did, start-ups are also painting themselves green.

Take Jaguar Vodka, the new brand from Prestige Imports. It is earmarking $5 for every case it sells to benefit jaguars. It has given $15,000 to the Raintrust Foundation to build a preserve for the endangered species in Brazil.

“We are not just doing this for a cheap marketing stunt,” says Jaguar’s Chief Operating Officer Joe Belli. “We’re doing it because we believe in helping the environment. We are putting our money where our mouths are.”

No doubt. But Belli raises an interesting point.

However worried they are about global warming, some consumers do see green campaigns as “a cheap marketing stunt.” And they are merciless when they spot insincerity.

Case in point: Diesel. The Italian fashion firm was recently trashed for its Global Warming Ready initiative.

We can’t imagine why.

One ad shows a couple posing in Diesel swimwear against a backdrop of penguins and their habitat. Another depicts people trying to stay cool with drinks in a city taken over by water.

The Web site at www.Diesel.com/globalwarming offers video tips on how to save energy. But some see the pointers as frivolous.

For starters, Diesel advises people to have sex to keep warm and cut their heating bills. It also urges them to walk to shops and turn off lights.

The campaign “is meant to be tongue-in-cheek, but some are claiming that Diesel isn’t backing it up with enough eco-friendly initiatives of their own,” Robertson says.

One such critic is Zara Mung, editor of Ethical Corporation magazine.

“The people who buy Diesel clothes are the types who can afford to fly away on their holidays every year and would probably rather buy a handbag (or man bag) than offset their emissions,” she wrote in a recent blog.

Philips Lighting also learned that green marketing isn’t for amateurs. It failed in its first attempt to market compact fluorescent light bulbs in the 1990’s.

One problem was that the EarthLight didn’t fit many lamps. And it cost from $15 to $20 per piece.

But the company rebranded the product in 2000 as the Marathon CFL. The longer life and lower price point ($2 to $5 per bulb) made it more attractive to consumers. Sales of the item have increased by nearly 300% in the last five years, says spokesperson Susan Bloom.

Philips now promotes its bulbs at trade shows and events. And it sponsors Live Earth, a global concert series dedicated to boosting awareness about climate change.

“It has taken time for all of these things to come about,” Bloom says. “Consumers are starting to embrace the fact that they can truly make a difference just by changing their light bulbs.”

BEST PRACTICES

So how does a firm avoid being tarred as an exploiter?

The first rule is that products marketed as green “really need to be green,” Erdem says. “There is a chance that consumers will say, ‘This is just another marketing ploy.’ This is where credibility matters, and where execution will be the key,”

“This isn’t something you can dabble in and then go back to your old ways,” adds Meyer. “Over the next year or two, we will see a real backlash against folks who sell green products but don’t walk the talk.”

And quality must be maintained.

“Just being green is not enough,” Erdem says. “You need to be credible to consumers in terms of your motive.”

It also pays to realize that not everyone worried about the environment is a granola-eating tree hugger. Nor are they young.

“It’s not limited to age,” Deutsch says. “It’s almost like marketing to a mindset.”

Is green marketing paying off? “The jury is out,” Erdem says.

“Corporations will need to measure spending and look at the return on investment,” says Bonnie Carlson, interim president of the Promotion Marketing Association. “So maybe it will cost them a little more, but they can perhaps ask for a higher price so there will be a higher share of market. The ROI will show it makes sense to do it that way.”

Despite these challenges, some marketers have ambitious plans.

For example, EventNetUSA is spending $5 million to organize the Get Green At Home Tour, a 40-city junket that will showcase 25 brands and their environmentally friendly products. The first event of its kind, it begins next January.

The cost per sponsor? From $300,000 to $350,000. But they will get category exclusivity and access to an estimated 4 million people. They can offer product samples, coupons and gifts with purchase.

Better yet, EventNetUSA will spend up to $1 million on advertising and marketing.

“The message to the American public is, ‘You’ve got to get green’,” says Joel Benson, president of EventNetUSA.

In another first, Green Media Enterprises will present green trade shows in two locations next year: in April at the Los Angeles Convention Center and in October at the Piers in New York.

Yes, there will be bumps. And the long-term impact on the environment may not be known for decades. But one thing’s for sure: That green marketing, as Erdem puts it, is “here to stay.”

WANT TO GO GREEN?

Here are 10 tips to help ensure success:

1. Identify your target audience. Know whom you’re marketing and what green issues are most relevant to them.

2. Be relevant. Choose a campaign that makes sense for your business.

3. Practice what you preach.

4. Educate and inspire. Help your target navigate by providing easy-to-follow information and tips.

5. Be virtual. Save a tree and make collateral materials downloadable from your Web site.

6. Make your campaign sustainable. Eco-friendly campaigns shouldn’t be one-offs; they should be ongoing.

7. Create a green culture. Own your message and make it part of your corporate vision.

8. Advertise.

9. Be consistent. Take your campaign to the next level, and work with other companies with similar values.

10. Encourage customer participation.

Source: JWT’s Trendspotting Group:

WALK THE TALK

Event or mobile marketers concerned about the environment, not to mention sky-high gas prices, might think about using electric cars as an alternative to gas-guzzling, pollution-causing SUVs or trucks.

The Electric Vehicle Co. is pitching a green-friendly option to brands that run automobile-based campaigns. The company’s ZAP (Zero Air Pollution) line of Xebra cars gives new meaning to the word mobile.

Domino’s Pizza is testing for deliveries the three-wheel, four-door Xebra sedans. Priced at $10,000, the vehicles can reach 40 miles per hour for up to 25 miles.

“We recognize consumer package goods companies are out there who want to reinforce their commitment to the environment,” says Bob Kopach, vice president of sales and marketing for The Electric Vehicle Co. “Here is a way to do it full circle.”

The company partnered with ZAP in January to sell the line of vehicles, which also include Xebra pickup trucks, ATVs and scooters, to universities, municipalities and brand marketers.

PERFECT FOR PIZZA DELIVERY

Domino’s first encountered the pint-sized vehicle in May at the company’s worldwide rally for franchisees in Las Vegas. The company staged a PR stunt to use a wrapped car for deliveries in the area.

The idea caught on. Seven Domino’s franchisees bought a vehicle to test it for themselves.

“Obviously, this is a new venture for us,” says Domino’s spokesperson Dana Harville. “We wanted to test out a vehicle to see how it will work and have a positive impact on decisions later on down the road. We are interested in being a good corporate citizen.”

For Domino’s, the limited-range vehicle could serve the brand well.

“From a branding presence, the car looks great on the road,” Harville says.

Another benefit of a company using an electric car is that “it sends the message they are doing marketing that is environmentally friendly,” notes Kopach.

The all-electric vehicles emit no pollution, but require power to charge the batteries. Owners plug the car in for six to eight hours and go.

Marketers are slowly approaching agencies like OgilvyAction to test the waters when it comes to going green.

“For experiential marketing, we are always looking for newest piece of technology to be relevant,” says Jeff Stelmach, executive vice president experiental marketing, for OgilvyAction Chicago. “When we’re out there at the fair, a festival or a taste there are multiple engagements going on. What can we do to break through that clutter?”

While Stelmach says traditional vehicles likely won’t be replaced in a campaign, an electric car “is great for a limited engagement.”
— Amy Johannes