Tomorrow, April 22, is Earth Day—a day promoting awareness and change for environmental issues including global warming, pollution, wildlife, alternative energy, going green, etc. With the arrival of Earth Day, I am inspired to discuss the consumer movement (and reactions of advertisers) towards going green.
So why are consumers going green?
About 35 million Americans are going green and willing to pay 5 to 10% higher prices for eco-friendly products, and thus defying recessionary trends – meaning potential profits for those companies who are willing to and can meet consumer demand. Labels and ads are focus on words like ‘all natural,’ ‘eco-friendly,’ and ‘organic’ – buzz words meant to attract consumers’ desire for environmentally friendly products.
Havas CEO Fernando Rodes Vila says that “Companies who are committed and respect the environment will be favored by consumers…And in most markets, consumers are ready to reward companies who do right by the environment”
Several companies have already taken steps towards becoming green. FedEx, UPS, and Coca-Cola are all converting their delivery fleets to hybrid vehicles. Cargill and SC Johnson are using trash/waste to power factories to make environmentally friendly products. Car makers are turning towards production of hybrid and alternative energy vehicles. In my own office, employees are asked to power off computers and lights at the end of the day, recycle paper, and conserve water. Here are a few examples of some other companies exploiting their own green initiatives:
General Electric – Ecomagination
http://ge.ecomagination.com/site/index.html#ads
Chevron – Power of Human Energy
http://www.chevron.com/about/advertising/
Apple MacBook
While companies are capitalizing on inflated prices of green products, they should also note that their point of differentiation will fade as consumers demand more and more environmentally friendly products at a lesser price. However (at least time being), companies and advertisers should exploit this consumer trend, which will most likely prove profitable for companies, consumers, and especially the environment.
References:
http://en.wikipedia.org/wiki/Earth_Day
http://adage.com/article?article_id=136091
http://www.usatoday.com/money/advertising/2007-06-22-cannes-green-usat_N.htm
http://adage.com/mediaworks/article?article_id=136116
http://www.csrwire.com/News/1782.html
http://www.fastcompany.com/blog/fast-company-staff/fast-company-blog/sustainability-green-age-advertising
http://www.etftrends.com/2009/01/are-consumers-serious-about-going-green-etfs.html
http://www.msnbc.msn.com/id/12040418/
Weather Channel (TV Show)
About Me
- eckramer
- Growing up in Atlanta, GA, I moved to New Orleans, LA to achieve my BBA in Marketing and Management from Loyola University New Orleans. After being displaced by Hurricane Katrina, I spent a semester at Georgia State University, but was able to return to New Orleans to achieve my degree. Following graduation, I returned to Atlanta to pursue a coveted career in advertising. Currently, I am working as an assistant traffic manager at a prestigious advertising agency. I am a self-motivated, organized, detail-oriented, advertising professional with a strong sense of project ownership and proactive approach to issue resolution. Although my background has been primarily focused on online media, I have the ambition to learn and master new technologies, processes, departments, and other innovative facets of the advertising industry including broadcast and print production, public relations, communications, and strategy. I interact with a variety of people, personalities, and overcome unique challenges on a daily basis in a highly-dynamic environment under strict deadlines. I am always looking to increase success for myself, my agency, and our clients.