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"As green products become more prevalent, consumers are more likely to select them, especially if they achieve value parity," says Drew Neisser, CEO of Renegade Marketing Group in New York. To illustrate, Neisser points to the Method brand of eco-friendly home-care products. "Method is more expensive than other liquid soaps, but the sleek design makes Method a premium product."
Whether we're talking Method, Body Shop, Aveda, Stonyfield Farms or Ben & Jerry's, green brands distinguish themselves on a variety of levels—including ingredients, processing and packaging. "Every step of the life cycle attempts to minimize environmental impact," says Jacquelyn Ottman, founder of eco-innovation/green marketing firm J. Ottman Consulting and author of "Green Marketing: Opportunity for Innovation." Once this happens, green brands "start to attract environmentally conscious and aware consumers." Which can increase market share and help businesses take advantage of new markets.
When Wal-Mart committed to investing in sustainability projects and to holding suppliers to higher environmental standards, the impact was twofold, affecting both the supply and demand sides. The big-box retailer, for instance, has become the world's biggest buyer of organic cotton and the biggest seller of organic milk.
"Suddenly, no God-fearing, middle-class American could only see 'green' as a liberal plot invented by Al Gore," Neisser says. Instead, consumers found themselves "embracing green as a mainstream, flag-waving idea."
Which means, Neisser adds, that "green is no longer a liberal cause for the granola set."
To be effective, though, green marketing campaigns must deliver on primary product benefits—like clean clothes and great taste. Once that's achieved, Ottman says, communicating environmental benefits can help justify premium pricing or, at a minimum, sway purchasing decisions.
Music is also part of the equation now. Natural food company Clif Bar began working with musicians a couple of years ago because it noticed the unique relationship that exists between artist and fan. "Artists are able to communicate to fans in a way that fans listen," Clif Bar lifestyle experience manager Grady O'Shaughnessy says.
Still, people worry that, for some brands, eco-aware platforms are focused more on marketing impact, not on actually moving the needle on social change. For Martin, the perfect scenario occurs when a brand's social change component becomes part of its core attributes (think Ben & Jerry's).
Come June 19, with the launch of nonprofit Climate Counts (climatecounts.org <http://climatecounts.org> ), consumers will have the opportunity to see which brands are truly affecting environmental change. One component of the Web site rates the top 90 brands in the country—based on Fortune 500 stats—on their contributions to global warming and actions they've taken to combat the negative effects of global warming.
In the process, Climate Counts may well create a stigma against those companies not working on strategies to be more green.
"Not going green is simply a dead end with little upside and lots of downside," Neisser says. "How you communicate your greenness is the issue. Those who can gain competitive advantage by being green should shout it out."
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