Green Ocean Strategies for Global Marketing

World SME Expo 2008

Hong Kong SAR

December 12, 2008

The Ingredients of Brand

Green Ocean Agenda

B2B vs B2CSMEs and brands SMEs and Sustainable Supply ChainBlue Oceans and Green OceansCase Studies in Green Ocean Strategy Green Oceans for Turbulent Times?

purchases

Business-to-Business Marketing vs. Consumer Marketing?

considered

emotional buy ----------- yes

impulse buy -------- NEVER

Business-to-Business Buyers

career reputation job complexity stress

hero promotion? performance review?

turnover sustainability sales boss

price competitiveness colleagues brand reputation specifications staff

efficiency ROI customers…

SMEs + Branding Strategy

If done correctly• yields new business• builds exclusive, trusting, loyal customers• permits premium, value-based pricing• generates more revenues• sustains business in economic downturns

SMEs + Branding Strategy

Done incorrectly, or not done at all

• destroys credibility and trust• makes you invisible -- a commodity in lowest-bidder

market

Brand = Purpose + Differentiation

Purpose is customer-driven Differentiation -- in fact and substance

““How are you different and why should the How are you different and why should the customer care?”customer care?”

Brand strategy for the planet

“Prove to the world that solving the climate problem is the biggest opportunity for economic and social mobilization since World War II.”

US Former President Bill Clinton, Greenbuild 2008

…..solving the climate problem is a Green Ocean opportunity

for B2B SMEs to build brand

in North America and Europe

Brand strategy B2B SMEs

Global Brands + their B2B suppliers

differentiated their brand

using sustainability as their purpose

Global Brands + their B2B suppliers

differentiated their brand

using sustainability as their purpose

motum b2b clientsmotum b2b clients

Toyota Toyota

What does a B2B brand

need to understand about

supply chain and Sustainability?

CEOs, Sustainability and Supply Chain

Supply chain = key enabler

for sustainability To be in their supply chain =

prove you are Green and Ethical Significant change in the wings

CEOs and Sustainability

Improve Brand (54%)

Differentiate Products (50%)

Top reasons for sustainability management

Not compliance, risk or cost/price

Sustainability in the Supply Chain

48% of b2b buying decisions turn

on environmental & sustainability impact

60% of companies had de-selected suppliers

for not meeting sustainability criteria

Sustainability Gap = Opportunity

72% of CEOs say their companies

should incorporate sustainability

into strategies and operations

50% are doing so

but <5% doing it successfully.

The math looks good.The math looks good.

SME Brands in B2B Supply Chain

You and the Sustainability-Driven

Supply Chain:

Opportunity to rescue global brands Opportunity to rescue global brands

facing de-selection for not meetingfacing de-selection for not meeting

sustainability criteriasustainability criteria

…..Green Ocean

a differentiating brand strategy

Blue Oceans = Make Competition Irrelevant

Create uncontested market space Find + serve Third-Tier

‘non-customers’ Value innovation = pursue

differentiation + low cost

Herman Miller Path to the Aeron Chair

2000’s Reinvented systems furniture

“be a good corporate neighbor by being a good steward of the environment”

Dirk Jan De Pree (DJ), Founder of Herman Miller Statement of Corporate Values, 1955!

2020 Commitments

Zero landfillZero hazardous wastesZero air emissionsZero water emissions Minimum LEED SilverAll Green Energy

the mirra®

Herman Miller: Green Ocean Brand Winner

Most Admired Company in its Industry, 2007 (Fortune)

One of 50 Most Innovative Companies Worldwide (Fast Company)

One of 50 Best Manufacturing Companies (Industry Week)

World’s second largest office furniture maker

“Doing well by doing good.”

Interface: Green Ocean Brand Winner

World’s largest manufacturer of commercial modular carpet

Founded in late 60s “to reinvent floor covering”

By 1996, cut GHG by 56% with energy efficiency and renewables

Mission Zero:

Our promise to eliminate any negative impact our company may have on the environment by the year 2020.

Ø™

mission

Randomness and Disorder

Entropy®

zero “attic stock” near zero waste near zero repair and

maintenance cost

”Their biggest product in the shortest period of time in the history of the company.”

Fast Company

http://www.florcatalog.com/

Interface: Green Ocean Brand Winner

Offers best brands in industry

Ranked #1 by top interior designers

Global market share twice that of nearest competitors

Strong Financial Performance

“We’re just getting started.”

“…our sustainability goals for 2020 are a brand enhancing competitive strength and strategic initiative.”

Skeptical in these economic times?

Still Skeptical?

China’s 2-year, 4-trillion-yuan stimulus focus on energy/ environmental sectors(China Daily, Nov. 14, 2008)

Britain adopts plan to cut GHG emissions 80% by 2050 (The Guardian, Nov. 27, 2008)

Still Skeptical?

European Union expected to follow China, Canada, South Korea, California with CO2 curbs on all automobiles

Dutch-Chinese consortium to invest $1 billion building four wind farms in China

This week: 190 Nations meet in Poland to draft “Kyoto 2” for 2013

US: $300-700 Billion Obama Plan (Wall Street Journal, Nov. 25, 2008)

Obama Plan

Cut GHG emissions by 80 per cent by 2050

One million plug-in hybrid automobiles by 2015

Focus on energy and renewables to stimulate jobs

Generate 10 per cent of US electricity from renewables by 2012.

Still Skeptical?

Building Sustainability

Building Sustainable BrandsSusan Sheehanmotum b2bToronto, Canadatel: +1-416-598-7585ssheehan@motumb2b.com