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New ImageBrand value dilemma
Creating value
with sustainability

Seeds of growth lie in saving money
and saving energy

21 Jul 08
Brands can gain the upper hand in difficult trading conditions by overcoming the tension between sustainability and value. This means engaging consumers and offering choices that provide both.

As the harsh effects of the economy take hold, household budgets are tightening, creating uncomfortable trade-offs between emotional desires and a rational perspective of what's left in the wallet. Consumers' principles on the environment are also being tested, due to the perceived lack of good value sustainable products on offer or practical solutions that can save money.

This growing tension between value and sustainability calls for brands to take a fresh look at the value equation to see how sustainability can be integrated. Those that succeed could see a sustained brand loyalty that will prove to be important in these tougher times.

Brands need to show an appreciation of the "cultural capital" where the economic constraints affecting the social context of life today rival the impact of decisions on environmental issues in the longer term.

Consumers don't live in a vacuum, their consumption and behaviour is naturally affected by what is going on around them. The credit bubble seems to have burst with house prices predicted to drop by 9% this year, the cost of food basics rise by up to 20% and fuel prices going up on a weekly basis. Rising food prices are partly blamed on global food shortages as a result of climate change and the demand for biofuels, bringing environmental issues to the fore.

There are obvious signs of changing behaviour as consumers come to terms with their options; to simply consume less of the same quality, demand more for less or even make new and different choices altogether. Growing your own vegetables is a rising trend, with the Horticultural Trades Association reporting a 31% increase in the sales of vegetable seeds against a corresponding 32% decline in the sale of flower seeds. This, coupled with the fact that 65% of consumers feel they shouldn't have to pay more for sustainable products, suggests the need for brands to respond to growing consumer demands for value or for sustainability.

How do brands redefine value to include sustainability? The term "good value" has become culturally understood as "cheap" or "low cost", but the meaning is really about a relative understanding of what you pay versus what you actually get in return. To quote billionaire Warren Buffett: "Price is what you pay. Value is what you get."

Even in today's climate it's not just about price. Perception is key: what's relevant and meaningful to one person will be utterly different to another. Indeed, for 35% of consumers who claim they would pay more for ethical products, value could mean meeting their emotional desires of that more expensive item against their rational needs for better quality. Similarly, in the supermarket sector, rewards for shopping green, local sourcing and reduced packaging emerge as the most valued and motivating sustainable initiatives to drive loyalty.

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Value is achieved when the product benefits or quality experience outweigh the negative detractors in relation to the price. Added Value research shows a correlation between a brand's responsible behaviour and its value. Indeed, sustainability can act as a benefit or by its absence create a detractor. Supermarkets are seeing a lift to their brand value as a result of their sustainable initiatives, as are those brands taking action in the lower interest utility sector.

It's about process not just productReframing what is valuable about a product or brand offers a new way to talk about value, and becomes especially pertinent in the context of sustainability. For example, energy saving appliances reduce carbon emissions, but importantly reduce energy bills. Better quality fashion is more durable than "disposable" options, creating savings in the long run.

Finally, look at how to bridge the gap between sustainability and value in a way that fits seamlessly with the core positioning. Beauty brand Aveda claims to be the first in its sector to manufacture with 100% wind power, with the launch of its Smooth Infusion range. Creating value with sustainability by drawing on the product benefits detracts from the higher price tag, a much harder task in the price driven retail sector.

Supermarket giant Wal-Mart has firmly aligned sustainability to its value proposition of giving customers the best price with their tagline "Save money. Live better" supported by regular product offers which "Save money. Save energy. Save the environment". Whereas Sainsbury's uses its "Try something new today" tagline with affordable recipes that will feed the family for £5. However, could a sustainable message have added a further dimension to value by enhancing perceived product quality?

New ImageOvercoming the tension between sustainability and value is not easy and is hindered by the current pace of change. Brands have a responsibility to engage consumers by creating choices that offer sustainability as well as value, which could place them in a stronger position in today's difficult trading climate. But it's certainly no longer a case of one or the other. It has to be both.

Editor's Comment
This article is highly relevant to the OP marketplace even though it uses examples of beauty brands and supermarket giants. The BIG point is that in the OP market during an economic slowdown customers are looking for value comparisons. New Brother muti-function printers (pic left) are TCO99 compliant i.e. low emissions and bidegradable equipment.

Progressive local dealers have the opportunity of a lifetime, to provide extra value by matching and beating big box players with single source local service. This effectively 'cuts costs and cuts carbon' for dealers and their customers. Commercial Group of Cheltenham in UK have been the eco champions for independent dealers and a great example to follow (read their story in Proficiency Profiles)

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Talking Green

Everyone's on it...

but do they get it?

Beware the Greenwash Bandwagon

Move towards an eco-productivity agenda

9 July 08
Pick up any magazine today…read any press release from a manufacturer, dealer group, wholesaler or big box player and they all seem to be talking green. The bandwagon is rolling…

 

Scanning through the details the focus seems to be on recycling content of product or packaging…very little about process or distribution.

 

There is also the issue that has become the popular perception that going green costs more i.e. using recycled materials is more expensive. As a result, many initiatives get killed at birth or are described as a fad…the initiative of tree huggers.

 

The truth is today the attention has moved from green product 'micro' issues to sustainability… to eco friendliness…from corporate social responsibility to corporate responsibility…to becoming good citizens in the local community. Today the issues are about people processes, about what distributors and users can do together that won't cost the earth.

 

More precisely, what can we do together to effect climate change. How can we cut energy, how can we cut carbon? The answer is that when we cut costs…we automatically cut carbon, therefore eco-productivity solutions do reduce costs. The opposite of the mainstream perception.

 

Meanwhile, all the ads you see use the same old images "saplings growing out of a globe'…butterflies…earth images in the palm of a hand…trees and grass etc. Really unimaginative and very 'me-too' marketing.

 

Where are the original images depicting what companies are doing in practice. This is what will resonate with users, rather than the current view, which is that too many marketers don't get it and are simply jumping on the 'greenwash bandwagon'.

 

So what should marketers do about it?

Review actual practices/plans…
market authentically

Let's start with manufacturers. The thing we notice most is the adding af 'earth symbols' to product images and using as much green ink as possible to wash the ad page, making it difficult to pick out why users should choose the promoted product.

 

Take a leaf out of some of the best marketers in the world when they advertise. Brands like Honda focus on the ergonomic comfort of people not the car; Arcelor Mittal on 'boldness' in choosing their wind turbine blades; HP highlight low printing cost per page; Brother on the biodegradability of their printers; and GM on their new fuel efficient cars.

 

OP manufacturers in the latest editions of magazines typically don't highlight the eco benefits, don't highlight specific cost savings…packaging reductions…biodegradability. They all look the same.

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We love the 'yoyo paper always come back' ads from PaperLinX inviting users to get involved with the 'see how much your business can save' calculator featured on their website. Simple, specific and superb.

 

We like the Pilot ads stating the specific recycled content of each pen in the BeGreen range. Avery has promoted recently that their labels are the first to be FSC certified…the sustainabilty aspect needs to be explained simply so users get it, rather than just parading an industry badge.

 

Dealers have been slow to get involved with eco developments with the notable exception of UK leader Commercial Group in Cheltenham. Commercial get it BIG time. Simone Mann, sales director has driven a low carbon agenda since February 2007 involving Carbon Neutral Co., suppliers, employees and customers in a joint programme to reduce emissions. This has been very effective in reducing energy consumption, costs and given Commercial a substantial competitive advantage. That's authentic.


Narrow the focus from general recycled products to more specific eco-actions

Rather than jump on the bandwagon and paint the market green, manufacturers should focus on the specific actions they are taking to improve productivity in the office. By improving productivity i.e. saving time, money and space for users they will be making a positive 'green' contribution. Less energy expended, time saved, space maximised are all benefits to be highlighted not the features of a product.

Just look through some business, trade and user magazines and catalogues even…see how many times the user benefits stand out. Not many.

Highlighting recycled content, biodegradability, packaging reductions is terrific stuff, but marketers need to satisfy the what's-in-it-for-me attitude of users. Yes we know that recycled content has been more expensive, but manufacturers are making progress and cost comparison differences are closing.

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Set a clear eco-productivity agenda
For dealers, going green should be an easy decision to make. Fears of recession too should help them to switch their obsession with low prices and high discounts to a 'lower cost' selling approach.

Do businesses want lower costs or lower prices? Yes, I know they want both. We need to train sales people how to sell in single source systems which are personalised to each client. By consolidating purchases of a wider category of products, dealers can offer savings to clients in acquisition costs and match current suppliers prices. The perfect cost saving agenda.

The huge publicity surrounding climate change/global warming highlighted by the Katrina and Asian Tsunami disasters plus Al Gore's Oscar winning movie 'An inconvenient truth' have made a deep impression on the world's leading economies. Reducing carbon emissions is now high on business leaders list of priorities.

Now dealers that want to understand the need to work together to reduce carbon emissions have a ready made motivation and a more important, a customer that will listen from the top management down. Dealers too have the added perception advantage with customers that they are local and therefore distributrion costs and carbon emissions will be lower.

Eco-productivity is the real 'green' issue and something that local dealers can do something about. It will require understanding, the desire and energy to act, the investment in upgrading the sales and marketing approach and the persistence to follow through with clients right through to the users and chiefs. Progressive dealers in the US/Canada like Innovative, S&T, Garvey's, Mills and Monk get it, as do Commercial, Bluefish and Penketh's in the UK.

If manufacturers work in partnership with wholesalers and dealers on the eco-productivity agenda together to genuinely reduce costs and carbon emissions...if they truly get it...they will get the business and cut costs and carbon emissions for every participant's benefit.

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If you need help starting  your own Eco-Productivity Agenda
contact
Peter Frost at peter@proficiencypost.com or call +44 1932 784887.

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EcoExpo'08 Tour Report #2

Be Innovative!

Minneapolis office productivity provider
gets terrific response from customers

 

15 May 08

Over 200 customers and prospects attended EcoExpo'08 organised by Innovative Office Solutions in Minneapolis. The event hosted appropriately by Global was held in their beautiful showrooms featuring the LEED certificated and eco friendly furniture range Evolve.


The Expo ran from 10am through 2pm with all the leading manufacturers represented. Two remarkable features were displayed by Creative Resources and Green Mountain Coffee Roasters. Tremendous interest was shown in Creative's latest range of unusual 'green'advertising specialties including use of recycled materials for USB flash drives, cool water clocks, enviro charger for LED flashlights etc.

 

Also popular was the welcome K-cup of Fairtrade organic coffee by Green Mountain. These came in various flavours…the caffe americano (espresso) version was fantastic.

Leading brands 3M/Post-It, Acco, Esselte, Pentel, Sanford, HP and House of Doolittle displayed their latest green ranges and together with the support of United Stationers latest catalogue evoked an enthusiastic response from guests.

 

The eco-productivity seminars were oversubscribed so Innovative ran the programme 3 times. As usual, the opening question "How many of you know your personal carbon footprint?" evoked a "No" response. The interactive session helped customers calculate their personal carbonfootprint measurement. In the USA this has averaged 20 tonnes of carbon dioxide per person compared with the UK at 10 tonnes.

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The 'Cut costs…cut carbon' seminar theme helped understanding of the mounting global warming problem, which a consensus of leading scientists believe is being caused in homes, offices and on the roads. Peter Frost encouraged guests to take the initiative and become the eco-champion in their business and set goals to 'reduce, re-use and recycle'.

Minnesota was acclaimed for its eco and sustainability commitment with the majority of the 19 Fortune 500 companies in the state. These of course include 3M and Best Buy who are exemplary in this regard

 

Innovative owner and eco-champion Jennifer Smith (see pic centre, with reps Kathy left and Kellie right) can be a proud lady. Apart from being one of the top 10 productivity dealers in the world $410,000/employee, Innovative is one of the lowest carbon dioxide emitters at 261 tonnes…way below the average of 400 tonnes for the equivalent size of business.

 

There was a tremendous response from all guests to the central 'Eco-SYNOPSIS' message of "Cut costs…Cut carbon" the 4 point plan where customers can become eco-productivity partners. This involves a mutually beneficial programme to

 

  1. Single source total business supplies from Innovative
  2. Maximise online ordering
  3. Consolidate orders/deliveries weekly or 2/weekly
  4. Source locally with Innovative
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Guests were very enthusiastic and acclaimed the Expo a resounding success. The response since has been very encouraging with reps and customers exploring opportunities to source a wider range of products with their host. Not surprisingly, the audiences were dominated by women...probably as much as 85% of the total.

 

Be eco-productive…Be the eco-champion…Be Innovative!

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EcoExpo'08 Tour Report

Eco-productivity

drives west

Action Agenda advances
to cutting cost and carbon emissions

4 May 08

The 21 city EcoExpo'08 tour got off to a great start on Earth Day in Vancouver, Canada on Tuesday 22 April with leading local  OP dealer Mills Office attracting over 100 of its best customers to the show. The tour finally ends at Bluefish Office on World Environment Day on 5 June.

On Thursday, the fourth in the series reached Chicago via Victoria on Vancouver Island, and Minneapolis (USA). We report below highlights of each event starting with Mills, moving to fellow BASICS member Monk Office in Victoria, on to S&T Office in Minneapolis through to Garvey's in Chicago. Next week we visit Innovative Office Solutions in Minneapolis before returning to the UK via Florida.

 

The opening question raised with all attendees "How many of you know your personal carbon footprint?" The answer in 99% of the cases with 15 EcoExpo's organised over the past 2 years was "No". The least benefit promised from the Expo's was the personal footprint measurement. Both in Canada and USA this has averaged 20 tonnes of carbon dioxide per person compared with the UK at 10 tonnes.

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There was a tremendous response from all attendees to the central 'Eco-SYNOPSIS' message of "Cut costs…Cut carbon" the 4 point plan where customers can become eco-productivity partners.

This involves a mutually beneficial programme to:

 

  1. Single source total business supplies
  2. Maximise online ordering
  3. Consolidate orders/deliveries  weekly
  4. Source locally with their host.

A consistent feature of the Expos so far has been the enthusiasm of guests to embrace the eco-initiatives displayed. Not surprisingly the average attendances have been dominated by women...probably as much as 85% of the total.

Mills EcoExpo in Vancouver (Canada)

Brad Mills (pic above right), CEO opened up the show in a great theatre style facility. Brad had been involved with Al Gore's visit to Vancouver in 2007. Mills have been committed to sustainability for some years and work with their customers and suppliers to minimise their carbon footprint. Amongst the 100 customers attending were companies like BC Hydro, Vancity, Citizen's Bank and Metro Vancouver all committed supporters.

 

Brad extended his commitment to social sustainability last year by opening up the H.A.V.E Café a culinary training society in the downtown eastside of Vancouver.

 

Monk EcoExpo in Victoria, Vancouver Island (Canada)

James McKenzie president of Monk Office opened up the show in the University of Victoria with 250 customers and prospects in attendance.

Committed green customers in attendance included Megson Fitzpatrick, UVIC, Thrifty Foods. Monk themselves support many sustainability causes and are enthusiastic environmentalists supporting Ecotrust and the BOMA Go Green initiative.

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Acco, Avery, Esselte, Blueline-Rediform, Lexmark, QuoVadis and Sanford were among the manaufacturers supporting the Expo with displays of eco-friendly product ranges.

 

S&T Office, St.Paul, Minnesota (USA)

Vicki Giefer (pic left), VP marketing welcomed over 250 customers and prospects to a terrific show at the Sheraton Hotel, Minneapolis. There was an impressive representation of manufacturers eco-friendly products eagerly visited by the mainly women attendees.

 

S&T are enthusiastic supporters of social and green initiatives. Customers and prospects involved in their drive included: Great River Energy, Close Architecture, Wilder Foundation and Medtronic

Leading manufacturers supporting a terrific event were 3M, HP, Smead, Pilot, Quality Park, Sanford and wholesaler SPRichards.

Garvey's, Chicago, Illinois (USA)

Bernie Garvey, president welcomed the 250+ turn out of customers and prospects to their impressive new eco-friendly facility in Niles. He gave a brief overview of their rapid growth and plans to go-eco with enthusiasm.

 

Kevin Garvey (pic above left), VP sales and marketing, did a great job for the 20+ vendors in attendance by highlighting the eco-benefits of products on display. Leading manufacturers with eco friendly products on display in addition to those mentioned above included: Fellowes, TOPS, MeadWestVaco, C-line, Xerox, Pentel, Zebra, HON, Nu-Kote, Saalfeld, R3 Distribution and wholesaler United Stationers.

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Sheila Gartland, one of the 6 siblings involved, plus their father, had organised a terrific show with an 'apple green' theme  for the café style setting, adjacent to the theatre style seating within the warehouse. The  whole Garvey's team  were kitted out in matching shirts issuing matching goody bags. A very authentic and impressive event sure to be repeated next year.

 

Now onto Innovative on Tuesday for another EcoExpo by one the USA's most progressive productivity providers.

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Today is Earth Day!

EcoExpo'08 Canada/USA/UK tour commences. The drive towards eco-productivity


22 Apr 08

Yes today is EARTH DAY the first of 2 big dates in the calendar to recognise the importance of our collective efforts to take responsibility for improving the state of our environment. World Environment Day is 5 June.

 

These two dates span the series of EcoExpo's that Proficiency Group is organising in conjunction with leading OP dealers in Canada, USA and the UK. To date firm dates have been set with 6 dealers with another 8 events to follow.

Today the programme kicks off in Vancouver with over 100 of Mills Basics customers attending the EcoExpo which will demonstrate their continuing efforts to drive sustainability programmes in their everyday trading practices.

 

Brad Mills, CEO of Mills is an enthusiastic driver of their sustainability programme. He said "Our efforts to go green have gathered pace since Al Gore visited Vancouver last year. We now focus on cutting costs…waste, packaging, using alternative fuels and recycled products. We have been able to reduce costs and reduce our carbon footprint. We have also started to sponsor local community projects e.g. H.A.V.E the Culinary Training Society"

 

Many observers feel that going green will cost more money and our cynical about attempts to improve the environment. Thr truth is that all the efforts of the 'tree-huggers' are starting to pay off and Canada and the USA communities particularly the west coast provinces/states of British Columbia and California…get it.

 

The Proficiency Group programme is about "eco-productivity…cutting costs and cutting carbon" states Peter Frost. "Last year we ran the first series of EcoExpo's inspired by Commercial Group's initiative in Cheltenham (UK) in February. Simone Mann their sales director, had attended an Al Gore seminar  organised by BSkyB one of their largest customers. From that point Simone enthusiastically drove Commercial's  efforts to reduce carbon emissions in conjunction with The Carbon Neutral Company.

 

In 2007, 8 UK dealers were involved in the EcoExpo's and since five have gone on to register their carbon cutting campaigns with organisations like carbon Neutral: Bluefish Office Products in Northampton; Anglo Office Productivity in SE London; Penketh's Office Productivity in Liverpool, Allens in Cardiff and RedBox in London.

In 2008 USA dealers are starting to get it. "Last year, I spoke at many  US dealer group and wholesaler conferences and eco-productivity was low on the agenda. What a transformation! Interest and more important….action has taken off,"continued Frost.

Footprint' focus… the first step in cutting carbon emissions
A popular feature of the interactive presentations last year, was the opportunity for guests…for the first time, to measure their personal 'carbon footprint' against the UK average of 11 tonnes/person. This exercise proved to be an inspirational first step in tackling personal carbon emissions. The presentation evoked a strong sense of determination to work with their office supply partners to improve eco-productivity using single source systems, webstore purchasing, consolidating orders and local supply.

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"This year with Canada and US carbon footprint measured at  circa 20tonnes per person I expect an even greater determination to act in business and the home" forecast Frost.

EcoExpo'08 confirmed dates are as follows:

 

  • Today 22 April Earth Day - Mills in Vancouver, BC, Canada
  • Tomorrow 23 April – Monks in Victoria, BC, Canada
  • Tuesday 29 April – S&T Office, St.Paul, MN, USA
  • Thursday 1 May – Garveys, Chicago, IL, USA
  • Wednesday 7 May – Innovative, Minneapolis