Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: May 2008
Product Code: R560-3283Description "Green" messages have swept the marketing world over the past two years and Mintel provides the context necessary to understand the green marketplace. Interest in environmental issues, especially climate change, has surged in the wake of Hurricane Katrina, soaring oil prices, and Al Gore's Oscar-winning film and Nobel Prize. Marketers have caught on to the benefits that green messaging can bring to their brands.
Companies are embarking on green marketing campaigns, but which ones really work? When do green claims help a brand, and when do they turn consumers off and what are consumers really looking for in a green product or company? Mintel analyzes green marketing campaigns and current trends. This report builds on the findings of Mintel's Green Living 2008 report, which focuses on:
- The fast-growing market for green products and services with analysis on green marketing and branding by all kinds of businesses.
- Identifying the ethical and environmental issues that matter most to consumers, this research can help strategists hone their green efforts effectively.
- Companies and industries that have struggled with poor environmental reputations.
- Analysis of green marketing missteps, potential opportunities, and messaging that works via consumers' decision-making methodology on which messages and companies to trust.
Table of Contents - Scope and Themes
- What you need to know
- Definition
- Data sources
- Consumer survey data
- Qualitative data for this report
- Figure 1: Descriptions of green lifestyle qualitative interviewees, January 2008
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Current reputation an asset or a liability
- Greens get their info online
- Design, color, and symbols
- Breast cancer, treatment of employees, human rights seen as more important than environmental issues
- Women and those earning <$75K more likely to respond favorably
- Wide variety of drivers means corporate greening has staying power
- Carbon neutral claims to lose their shine
- Green consumers are mainstream consumers
- One in three shop based on corporate behavior
- Punishments are more common than rewards
- ...but most may not know who to punish or reward
- Push advertising meets with skepticism
- Spreading skepticism made easy by watchdog sites online
- Many paths to “greenness” illustrated
- Toyota
- Stonyfield Farm
- Nike
- Unilever
- Frito-Lay
- Chevy
- Wal-Mart
- Trends in Green Marketing
- Traditional campaigns
- Powerhouse green brands
- Toyota: capitalizing on hybrid leadership
- Stonyfield Farm: focus on organic growth
- Nike: casting off negative publicity with a long-term plan
- Subaru: leveraging a previous image into the green arena
- Figure 2: Subaru “Better plant, better cars” ad, 2008
- Unilever: buying into the green marketplace
- Clorox: developing a green line alongside its conventional products
- Frito-Lay: aiming to green the conventional line
- Figure 3: Frito-Lay Sun Chips ad, 2008
- Procter & Gamble
- Figure 4: Tide Ultra detergent, 2008
- Overcoming negative images
- General Motors (GM)
- Figure 5: Chevy Volt concept ad, 2008
- Figure 6: Chevy Tahoe hybrid ad, 2008
- Wal-Mart: making the changes before promoting them
- Figure 7: Wal-Mart ad, 2007
- BP
- Figure 8: BP energy alternatives ad, 2008
- Online and alternative marketing campaigns
- Facts, honesty, and having fun on the company website
- Interactive cause marketing a hit with 18-24s
- Using the news media to do your green marketing
- Harnessing customers’ creativity
- The power of green symbols
- Getting in good with citizen watchdogs
- Competitive Context: Other Cause-Related Marketing
- Introduction
- CRM is on the rise
- Consumers expect corporations to be socially responsible
- Green issues important, but breast cancer is the most popular CRM
- Top socially-responsible companies include green brands
- Who responds to CRM?
- More than half of adults respond to CRM
- CRM helps brand image among young adults
- Women respond more favorably than men to CRM
- A link between children and CRM
- CRM attracts Hispanic loyalty
- Benefits of CRM
- How consumers learn about CRM and how it influences purchases
- Products that might benefit from CRM partnerships
- CRM and green marketing share potential pitfalls
- Corporate environmental practices compared to other issues
- Figure 9: Importance of different aspects of ethical corporate behavior, December 2007
- Core green consumers care about all aspects or corporate ethics
- Figure 10: Importance of different aspects of ethical corporate behavior to respondents who are most concerned about corporate environmental impact, December 2007
- Women focused on people and the environment
- Figure 11: Importance of different aspects of ethical corporate behavior, by gender, December 2007
- Income mediates expectations of business
- Figure 12: Importance of different aspects of ethical corporate behavior, by household income, December 2007
- Market Drivers
- Green investing impacting company valuations
- Follow the leader or fall behind
- Wal-Mart flexes its environmental muscle
- Peer pressure drives everyone green
- Keeping one step ahead of government regulations
- Green media channels proliferate
- Green goes mainstream
- Health and safety concerns boost the green market
- Trends in Green Business Practices
- Carbon Neutral: trendy but confusing
- Carbon accounting can be murky and challenging
- The rising popularity of the carbon-neutral claim
- Is the claim legitimate?
- The growth and appeal of offsets
- Problems with offsets
- Metrics and standards on the rise
- The Green Consumer
- Shades of green
- How do Greens think?
- Age and green shopping patterns
- Figure 13: Frequency of buying green products, by age, December 2007
- Household income and green shopping
- Race and ethnicity
- Figure 14: Frequency of buying green products, by race/ethnicity, December 2007
- Education
- The impact of children in the household
- Reasons for buying or not buying green
- Consumer Attitudes Toward Corporate Responsibility
- Going green affects the decisions of one third of online respondents
- Figure 15: Influence of corporate behavior on shopping decisions, December 2007
- Corporate ethics does not resonate so well with the 18-24s
- Figure 16: Influence of corporate behavior on shopping decisions, by age, December 2007
- Education drives expectations for corporate behavior
- Figure 17: Influence of corporate behavior on shopping decisions, by education level, December 2007
- Most worry about corporate behavior but do not act
- Figure 18: Reasons that corporate behavior does not impact shopping decisions, December 2007
- Rewarding Ethical Brands
- One in nine respondents will pay more for ethical brands
- Figure 19: Influence of positive corporate behavior on shopping decisions, December 2007
- The young and educated more willing to sacrifice convenience for greenness
- Figure 20: Influence of positive corporate behavior on shopping decisions, by age, December 2007
- College grads and students committed to rewarding ethical brands
- Figure 21: Influence of positive corporate behavior on shopping decisions, by education level and student status, December 2007
- Punishing “Bad” Brands
- The stick is more common than the carrot
- Figure 22: Influence of negative corporate behavior on shopping decisions, December 2007
- Deciding Which Brands are Green
- Sources of information
- Figure 23: Sources of information about corporate environmental behavior, December 2007
- Age-related media divide governs the way people learn about green issues
- Figure 24: Sources of information about corporate environmental behavior, by age, December 2007
- Which Green Issue is Most Important?
- Figure 25: Importance of specific corporate environmental practices to consumers, December 2007
- Women more concerned than men
- Figure 26: Importance of specific corporate environmental practices to consumers, by gender, December 2007
- Limits to Knowledge about Corporate Responsibility
- Half of concerned respondents cannot name a company they approve of
- Figure 27: Familiarity with positive and negative corporate behavior of specific firms, December 2007
- Higher-income respondents feel more informed
- Figure 28: Familiarity with positive and negative corporate behavior of specific firms, by income, December 2007
- Responses by education
- Figure 29: Familiarity with positive and negative corporate behavior of specific firms, by education level, December 2007
- Attitudes Toward Green Advertising
- Consumers willing to believe, but also following up
- Advertising probably not the best foot forward
- Figure 30: Consumer attitudes toward green advertising, December 2007
- Women safer targets for green advertising
- Figure 31: Consumer attitudes toward green advertising, by gender, December 2007
- College grads skeptical of green ads
- Figure 32: Consumer attitudes toward green advertising, by education level, December 2007
- Results by Race and Ethnicity
- Figure 33: Influence of corporate behavior on shopping decisions, by race/ethnicity, December 2007
- Charitable giving and local efforts important to people of color
- Figure 34: Importance of different aspects of ethical corporate behavior, by race/ethnicity, December 2007
- Hispanics willing to compromise for green brands
- Figure 35: Influence of positive corporate behavior on shopping decisions, by race/ethnicity, December 2007
- Whites more committed to punishing bad corporate behavior
- Figure 36: Influence of corporate behavior on shopping decisions, by race/ethnicity, December 2007
- Green ads are missing blacks
- Figure 37: Consumer attitudes toward green advertising, by race/ethnicity, December 2007
- The Qualitative Survey: Consumer Concerns and Behavior
- Concerns
- Recycling the leading way to lead a green life
- Green shopping commonalities
- The Qualitative Survey: What Companies are Green?
- Introduction
- Impressions of specific companies and industries
- Figure 43: Companies viewed as environmentally friendly by multiple respondents, January 2008
- Figure 44: Companies mentioned as environmentally friendly by a single respondent, January 2008
- Figure 45: Companies viewed as bad for the environment, January 2008
- The Qualitative Survey: Green Branding
- Introduction
- Packaging a key theme for respondents
- Figure 46: Sources of information on green companies, January 2008
- Energy-efficient products a clear driver of perceptions
- “Greenness” of retailers depends on products carried above corporate policies
- Promote your solar panels and telecommuting employees
- Figure 47: Specific actions expected of green companies, January 2008
- Advertising tainted by concerns about credibility
- Figure 48: Respondents’ opinions about green claims in advertising, January 2008
- Exuding that green feeling
- Green the brand, not the parent company
- Healthy = green; green = healthy
- Companies that care about people and communities care about the environment
- Yesterday’s negative brand image taints today’s green initiatives
- Distribution a key source of credibility
- The Qualitative Survey: Responses about Packaging
- Simple packaging sends a green message
- Product packaging claims: offer facts and figures
- Figure 49: Views of green claims on product packaging, January 2008
- Consumers want evidence, but not too much
- Appendix: Trade Associations
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