TRUST:&FINDING&THE&VALUE&IN&GREEN… · TRUST:&FINDING&THE&VALUE&IN&GREEN&CONSUMERPRODUCTS&...
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TRUST: FINDING THE VALUE IN GREEN CONSUMER PRODUCTS A CASE STUDY COMPARING GREEN CLEANING AND PERSONAL CARE BRANDS ABSTRACT This study examined green consumer product value by comparing 30 top selling green cleaning and personal care brands amongst mainstream, acquired, and niche green companies. Green claims were compared using informa?on found on the package and website. Over the last decade, it was found that niche green companies increased sales and market share more quickly than both tradi?onal and mainstream green brands, despite economic turmoil. The study determined that niche green products inspired greater trust by increasing transparency surrounding: petroleumfree and safe fragrances, inherent biodegradability, animal tes?ng, and 3 rd party cer?fica?ons. In order to make sustainable progress, chemicalbased commodi?es such as surfactants were important elements to improve. Ingredient innova?on happened to be one convincing way niche green products pushed market change through beFer design and sourcing. Overall, the green consumer product market is expanding, niche green companies inspire trust and mainstream green brands could learn from trust inci?ng aFributes. ThoughGul change in the design of green consumer products will create a more sustainable market for consumers and lessen environmental impacts of consump?on. Heidi Travis Spring 2012 METHODS Selected 30 top selling green cleaning and personal care product brands among 24 top selling companies to study packaging, web informa?on, marke?ng, and overall revenues over ?me to discern brand value. Green brands were included from mainstream tradi?onal companies, niche green’s acquired by tradi?onal companies, and niche green companies. Claims and aFributes included in the study appeared on the website or package as obvious to the average consumer. Green claims were compared; however no assessment was conducted as to the validity of claims. For the purposes of this data comparison, growth over ?me was considered to be more important than sales values in order to determine change over ?me between massmarket companies and niche greens. INTRODUCTION Niche greens generate a sense of trust through a variety of means including research and development, ingredient selec?on, 3 rd party cer?fica?ons, and community development work. A strong sustainable image is developed by niche green companies by crea?ng a sense of trust. During the last decade, niche green’s substan?ally increased market share, even though niche green marke?ng budgets and distribu?on channels were not as extensive as tradi?onal public companies; yet, these small companies have been growing at rates of anywhere from 20200% a year. Mainstream companies aFempted to imitate transparency through quality claims in the launch of their new ‘green’ brands. Mainstream companies also spent large sums of money on market studies targe?ng green products to the typical consumer. CONCLUSION Each stakeholder should demand a higher standard of ingredients, produc?on, and design: such as renewable plantbased surfactants. Niche green companies could do a beFer job with opera?onal transparency so that lessons learned might help other companies become more sustainable. Mainstream brands should work to build green consumer trust through expressing more thoughtprovoking product stories, valuing ingredient transparency, cer?fying products, and facilita?ng health related educa?on. WORKS CITED 1. "Green Cleaning for Health." 23. Atlanta: Air Quality Sciences, 2011. 2. "Natural and Organic Personal Care Products in the U.S., 5th Edi?on." (2011), hFp://www.packagedfacts.com/NaturalOrganicPersonal6168595/ . 3. "Green" Household Cleaning Products in the U.S.:Bathroom Cleaners, Laundry Care and Dish Detergents and Household Cleaners." (2010), 4. Stephens, Greg. "Consumer Acceptance of Natural and Organic Personal Care." Inside Cosmeceu?cals. hFp ://www.insidecosmeceu?cals.com/ar?cles/2011/02/consumeracceptanceofnaturaland organicperson.aspx . 5. "Surfactant Manufacturers Look for Green but Cheap PetroAlterna?ves." (2010), hFp://www.icis.com/Ar?cles/2010/10/04/9396996/surfactantmanufacturerslookforgreen butcheappetroalterna?ves.html . DISCUSSION: FINANCIAL Green cleaning market sales increased 300% globally between 20032008, from $17.7 million to $64.5 million. [1] Green personal care products increased 61% in the U.S., from 20052010 to $7.7 billion. [2] A 2010 survey reported that 42% of adults used a greener cleaner during 2009. [3] 0% 20% 40% 60% 80% 100% Cleaning Personal Care % of Products Claiming Green Health Related Claims Mainstream Acquired Niche Green 0% 20% 40% 60% 80% 100% Cleaning Personal Care % of Products Claiming Green NonIngredients Reported Mainstream Acquired Niche Green 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cleaning Personal Care % of Products Claiming Green No Animal TesHng Mainstream Acquired Niche Green 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Products Claiming Green 3rd Party CerHficaHon Mainstream Acquired Niche Green Total Brands Mainstream Acquired Niche Green All Cleaners 7 1 3 11 Personal Care 3 5 11 19 All Brands 10 6 14 30 0% 20% 40% 60% 80% 100% 2006 2007 2008 2009 2010 Overall Cleaning Brand Growth: TradiHonal vs. Niche Green Tradi?onal Niche Green DISCUSSION: GREENER COMPANY Backstory: As an intrinsic part of the company’s founding, stories seemed to create trust because the entrepreneurial spirit inspires people. Many of the stories began with two people trying to create a be8er product through though9ul, simple ingredient efficacy. Local community service was an important company value for most niche greens, in addi?on to promo?ng safer products. Investment in product/packaging design, sourcing beFer ingredients was a higher budget priority than marke?ng for many niche greens. Mainstream companies tried to boost green reputa?on by acquiring green companies and partnering with reputable nonprofits. DISCUSSION: GREENER PRODUCT Health: Niche greens made more extensive claims with specifics like hypoallergenic, natural fragrance, and 100% essen?al oils. Noningredients: Mainstream claimed no phosphates, perfumes, dyes, other specific harmful chemicals or synthe?cs. Above mainstream claims, niche greens reported triclosan free and petroleum free. Biodegradable: More mainstream products made biodegradability claims; however, niche greens most ojen used 100% natural ingredients. Biotechnological advances used plantbased sources to create natural surfactants which will reduce oil dependence. [5] 3 rd Party CerHficaHon: More niche greens cer?fy personal care products. Nonanimal tes=ng was largest issue among environmental & social concerns, especially in regard to animal safety/vegetarian.[4] Packaging: More mainstream products made packaging claims about industry standard level recycled content and recyclability. Niche greens were more innova?ve, using 100% recycled content & plantbased ink. Readers: Susan Herbert Stan Laskowski
Transcript of TRUST:&FINDING&THE&VALUE&IN&GREEN… · TRUST:&FINDING&THE&VALUE&IN&GREEN&CONSUMERPRODUCTS&...
TRUST: FINDING THE VALUE IN GREEN CONSUMER PRODUCTS A CASE STUDY COMPARING GREEN CLEANING AND PERSONAL CARE BRANDS
ABSTRACT This study examined green consumer product value by comparing 30 top selling green cleaning and personal care brands amongst mainstream, acquired, and niche green companies. Green claims were compared using informa?on found on the package and website. Over the last decade, it was found that niche green companies increased sales and market share more quickly than both tradi?onal and mainstream green brands, despite economic turmoil. The study determined that niche green products inspired greater trust by increasing transparency surrounding: petroleum-‐free and safe fragrances, inherent biodegradability, animal tes?ng, and 3rd party cer?fica?ons. In order to make sustainable progress, chemical-‐based commodi?es such as surfactants were important elements to improve. Ingredient innova?on happened to be one convincing way niche green products pushed market change through beFer design and sourcing. Overall, the green consumer product market is expanding, niche green companies inspire trust and mainstream green brands could learn from trust-‐ inci?ng aFributes. ThoughGul change in the design of green consumer products wil l create a more sustainable market for consumers and lessen environmental impacts of consump?on.
Heidi Travis Spring 2012
METHODS Selected 30 top selling green cleaning and personal care product brands among 24 top selling companies to study packaging, web informa?on, marke?ng, and overall revenues over ?me to discern brand value. Green brands were included from mainstream tradi?onal companies, niche green’s acquired by tradi?onal companies, and niche green companies. Claims and aFributes included in the study appeared on the website or package as obvious to the average consumer. Green claims were compared; however no assessment was conducted as to the validity of claims. For the purposes of this data comparison, growth over ?me was considered to be more important than sales values in order to determine change over ?me between mass-‐market companies and niche greens.
INTRODUCTION Niche greens generate a sense of trust through a variety of means including research and development, ingredient selec?on, 3rd party cer?fica?ons, and community development work. A strong sustainable image is developed by niche green companies by crea?ng a sense of trust. During the last decade, niche green’s substan?ally increased market share, even though niche green marke?ng budgets and distribu?on channels were not as extensive as tradi?onal public companies; yet, these small companies have been growing at rates of anywhere from 20-‐200% a year. Mainstream companies aFempted to imitate transparency through quality claims in the launch of their new ‘green’ brands. Mainstream companies also spent large sums of money on market studies targe?ng green products to the typical consumer.
CONCLUSION v Each stakeholder should demand a higher standard of ingredients,
produc?on, and design: such as renewable plant-‐based surfactants. v Niche green companies could do a beFer job with opera?onal
transparency so that lessons learned might help other companies become more sustainable.
v Mainstream brands should work to build green consumer trust through expressing more thought-‐provoking product stories, valuing ingredient transparency, cer?fying products, and facilita?ng health related educa?on.
WORKS CITED 1. "Green Cleaning for Health." 23. Atlanta: Air Quality Sciences, 2011. 2. "Natural and Organic Personal Care Products in the U.S., 5th Edi?on." (2011),
hFp://www.packagedfacts.com/Natural-‐Organic-‐Personal-‐6168595/. 3. "Green" Household Cleaning Products in the U.S.:Bathroom Cleaners, Laundry Care and Dish
Detergents and Household Cleaners." (2010), 4. Stephens, Greg. "Consumer Acceptance of Natural and Organic Personal Care." Inside
Cosmeceu?cals.hFp://www.insidecosmeceu?cals.com/ar?cles/2011/02/consumer-‐acceptance-‐of-‐natural-‐and-‐organic-‐person.aspx.
5. "Surfactant Manufacturers Look for Green but Cheap Petro-‐Alterna?ves." (2010), hFp://www.icis.com/Ar?cles/2010/10/04/9396996/surfactant-‐manufacturers-‐look-‐for-‐green-‐but-‐cheap-‐petro-‐alterna?ves.html.
DISCUSSION: FINANCIAL v Green cleaning market sales increased 300% globally between
2003-‐2008, from $17.7 million to $64.5 million. [1] v Green personal care products increased 61% in the U.S., from
2005-‐2010 to $7.7 billion. [2] v A 2010 survey reported that 42% of adults used a greener cleaner
during 2009. [3]
0%
20%
40%
60%
80%
100%
Cleaning Personal Care
% of P
rodu
cts C
laim
ing Green
Health Related Claims
Mainstream
Acquired
Niche Green
0%
20%
40%
60%
80%
100%
Cleaning Personal Care
% of P
rodu
cts C
laim
ing Green
Non-‐Ingredients Reported
Mainstream
Acquired
Niche Green
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Cleaning Personal Care
% of P
rodu
cts C
laim
ing Green
No Animal TesHng
Mainstream
Acquired
Niche Green
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of P
rodu
cts C
laim
ing Green
3rd Party CerHficaHon
Mainstream
Acquired
Niche Green
Total Brands Mainstream Acquired Niche Green All
Cleaners 7 1 3 11
Personal Care 3 5 11 19
All Brands 10 6 14 30
0% 20% 40% 60% 80%
100%
2006 2007 2008 2009 2010
Overall Cleaning Brand Growth: TradiHonal vs. Niche Green
Tradi?onal Niche Green
DISCUSSION: GREENER COMPANY v Backstory: As an intrinsic part of the company’s founding, stories
seemed to create trust because the entrepreneurial spirit inspires people. Many of the stories began with two people trying to create a be8er product through though9ul, simple ingredient efficacy.
v Local community service was an important company value for most niche greens, in addi?on to promo?ng safer products.
v Investment in product/packaging design, sourcing beFer ingredients was a higher budget priority than marke?ng for many niche greens.
v Mainstream companies tried to boost green reputa?on by acquiring green companies and partnering with reputable non-‐profits.
DISCUSSION: GREENER PRODUCT v Health: Niche greens made more extensive claims with specifics like
hypoallergenic, natural fragrance, and 100% essen?al oils. v Non-‐ingredients: Mainstream claimed no phosphates, perfumes, dyes,
other specific harmful chemicals or synthe?cs. Above mainstream claims, niche greens reported triclosan free and petroleum free.
v Biodegradable: More mainstream products made biodegradability claims; however, niche greens most ojen used 100% natural ingredients. Biotechnological advances used plant-‐based sources to create natural surfactants which will reduce oil dependence. [5]
v 3rd Party CerHficaHon: More niche greens cer?fy personal care products. Non-‐animal tes=ng was largest issue among environmental & social concerns, especially in regard to animal safety/vegetarian.[4]
v Packaging: More mainstream products made packaging claims about industry standard level recycled content and recyclability. Niche greens were more innova?ve, using 100% recycled content & plant-‐based ink.
Readers: Susan Herbert Stan Laskowski
