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Green Marketing - US

Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: May 2008
Product Code: R560-3283
Description

"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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