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Published:5/1/2008

What you can learn from other industries about sending a greener message without washing out your reputation

It's a category bursting at the seams: so-called eco-friendly products. And there's enough "misleading" marketing happening that the Federal Trade Commission (FTC) accelerated a planned review of their environmental marketing guidelines, with stated plans to crack down on bogus environmental claims. The problem: green marketing is confusing consumers.

Cruise the aisles of the Green Products Expo in New York City and you'll raise your eyebrows at a few of the so-called "green" products on display. I won't name any names, but let's just say Greenwashing Sin No. 2 (see below) was in abundance—not something the FTC would charge in on, but something that'll make a semi-educated consumer skeptical. The trade show, though, also had some innovative products, and it gave us 80-plus examples to study of companies marketing green.

The six sins

Marketing the environmental attributes of your horticulture product might seem daunting, perhaps even dangerous. Let's start with what NOT to do. The Six Sins of Greenwashing, a set of guidelines developed by the marketing firm, TerraChoice is a good baseline of where the dangers exist when it comes to the greenest consumers. TerraChoice looked in big box stores and found 1,018 products that made environmental claims. According to their study, which we'll admit was pretty harsh on some products, all but one of those products committed at least one of the Six Sins below, giving credence to the difficulty of being a saint.

1. Sin of No Proof. If you make an environmental claim that isn't backed up by easily accessible supporting information or a certification, you've committed this sin. TerraChoice looks for the "proof" either at the point of purchase or on the company's web site.
2. Sin of the Hidden Trade Off. The most commonly committed sin, according to Terra Choice's study, occurs when a product is suggested to be green based on a single environmental attribute or a very narrow set of attributes, without attention to other important environmental issues. For example, recycled paper focuses on the reused resource, but rarely addresses the energy and resources used to recycle and manufacture the product. While the claim may not be false, it's often used to paint a "greener" picture of the product. It's okay to still focus on specific messages in your marketing; just be prepared to address other angles.
3. Sin of Vagueness. This happens when your claim is so poorly defined or so broad that it's likely to be misconstrued by the consumer. TerraChoice says claims such as "green," "environmentally friendly" and "eco-conscious" hold no meaning unless you elaborate. Use the words if they resonate with your customer, but elaborate! Likewise, terms such as "all natural" and "non toxic" have been targeted as vague and misleading.
4. Sin of Irrelevance. Distract a consumer by making environmental claims that are unimportant or unhelpful in making an informed choice and you've committed this sin.
5. Sin of Lesser of Two Evils. TerraChoice says this happens when environmental qualifiers, like "green" and "organic," are slapped onto products whose very category is of questionable environmental value. Their example: organic cigarettes. Luckily, we shouldn't have to worry about plants being an evil.
6. Sin of Fibbing. This one isn't hard to figure out: tell a lie or fake a certification and you're in trouble.
For more, visit www.terrachoice.com/sixsinsofgreenwashing.

The market plan

Realize that consumers are all in varying degrees of "greening"—from those who know very little, to those who are extremely well educated and committed to improving their eco footprint. Union Green, an offshoot of New-York based ad agency, Union, stresses that you need to know your audience and tailor your message to the right shade of green.

Use your communication and marketing tools to present a transparent picture of your product and company. How do the point-of-purchase displays, packaging and your web site measure up against the Six Sins of Greenwashing? If your own tools or selling situation present a communication challenge, consider the benefits of an eco-label that could help communicate your products' attributes while also assuring consumers of your claims.

Transparency

The most convincing cases at the Green Products Expo had a story to tell. Some even had storyboards as part of their POP. They handed out lists on what their companies do for people and for the planet. EarthShell, which makes compostable disposable dinnerware, offered to send me a complete life cycle analysis of their product along with third-party studies.

Naturescast, which creates a variety of home décor items, including planters, from dead twigs and sticks gathered in the forest, gave each person a DVD with a film about the resources used, their workers and the process of making their products.

Jacquelyn A. Ottman, president J. Ottman Consulting Inc. and author of Green Marketing: Opportunity for Innovation, has advised 60 of the Fortune 500 companies in green marketing issues. She spoke on green marketing at the 2008 ANLA Management Clinic. She says, "Consumers are concerned about the raw materials. They want to know how it's manufactured, packaged, distributed, marketed. They want to know if it's energy efficient, safe for children and pets. If it's recyclable, refillable, reusable."

Tom's of Maine's toothpaste—once a small start-up company and now owned by Colgate Palmolive—serves as a good example. Not only do they list each ingredient, but they also list the purpose and source of for each one. "By being so transparent, they're able to get you over that price point at POS," notes Jacquelin. Each box also contains a "letter" from the founders, Tom and Kate, stating the mission of the company.

With the FTC keeping a watchful eye on marketing claims, Jean Schwab at the Environmental Protection Agency says the best course of action is transparency. "Don't look at just one attribute of your product," she says. Also, be prepared to prove your claims. If there's research involved, make it public. If necessary, use a third-party certification to verify your product and/or processes.

Jacquelin does caution, "There is an issue though, with eco labels, and that is that there's a growing number of them." She advises choosing well-known programs. Most importantly, she said, you need to educate the consumer when you use the logo.

If you want to be a transparent company, start by addressing the life cycle of your product. In short, this is an objective way of looking at the environmental impact by detailing a product's inception; how it's manufactured/grown, packaged and shipped; and how it will be disposed of when it reaches the end of its life span. Who's interested in this info? Vincent Truant, CEO of Renewable Products Inc., says their Life Cycle Assessment for EarthShell dinnerware has been requested by everyone from their Wal-Mart buyer to concerned consumers to fourth graders working on school projects.

Case studies

"The way one communicates will be critical to success [in avoiding greenwashing]" says Jacqueline.

So who's doing a good job of communicating? Winners of the Effie Awards (www.effie.org), which have been handed out for 40 years, are a great place to look for inspiration in any marketing campaign, green or not. You'll find case studies of the winners on the Effie web site. For instance, learn how 2007 silver winner, Hallmark, put new life into a dying category of greeting cards. Also check out: Gold'n Plump Poultry, New Holland North America, Trex Company, BP, Chevron, Allstate and The Home Depot.

In 2008, The Effie Awards introduced a green category. The winners:

• GE's "Ecomagination Round Two" campaign
• Wal-Mart's "PSP 2007—Personal Sustainability Project"
• HSBC's "There's No Small Change" campaign

"In true Effie fashion, each Green Effie winning campaign created tangible results, from Wal-Mart employees developing positive sustainable habits to HSBC customers making real change, to GE creating and selling greener products," explains Eric Ryan, chair of the Green Effie Award Jury and co-founder of method (a company so hip they don't need to capitalize their name).

Speaking of method, take a look at these guys (www.methodhome.com), a cleaning product company that Jacquelin says is "using the power of design to differentiate themselves." They're targeting the 20-something crowd with modern packaging, reasonable prices (you'll find their products at Target) and an environmental/social message. In short, they promise efficiency, safety, environmental friendliness, fragrance and even modern design. In particular, check out their efficient "bloc" packaging and their emphasis on fragrance. While they don't advertise, the company has landed their product in major retailers, on the pages of Vanity Fair, and their viral word-of-mouth marketing is working wonders.

Since consumers are still skeptical about the quality of green vs. conventional products, reassurance always helps. For instance, at the Green Products Expo, we found a new player in the planter category, a company called EcoSource Home and Garden (www.ecosourceonline.com), whose tagline conveys that you-can-have-it-all attitude: "Who says you can't have high style and still save the planet?"

Rules for Green Marketing

Consumers you're selling to must:

• be aware and concerned of the issue
• feel they can make a difference
• believe your claims
• feel your product works
• be able to afford any premium and feel it's worth it

That means you need to know your customer and know what they're concerned about. And it means, no matter what you're promoting, you need to educate and empower the consumer.

Fun Fact: It's the Image

Research shows that the No. 1 reason people now give for buying the hybrid car, Prius, is "because of the statement it makes about me." Toyota is also finding they're attracting a large number of BMW owners who think they're getting a great deal price wise and who are proud to be driving a Prius.

Questions to Ask in Your Company

• What are we making?
• How are we making it?
• How can we inspire consumers?
• How can we make our passion and vision relevant and engaging?
• How can we empower the customer to make a difference?

Facts to Consider

According to a survey that looked at online consumer behavior, conducted by DoubleClick Performics:

• 83% of consumers are extremely or very likely to choose the environmentally friendly option when purchasing products.
• Nearly half of these, they report, will pay at least 5% more for such products.
• Young adults are more likely than older ones to search for environmentally friendly products.
• Specific user benefits top the charts as the No. 1 selling point for environmentally friendly products in nearly every demographic.
• The one exception to the above is the 45-54 age group, where specific user benefits and specific environmental benefits tie as the most attractive type of marketing/selling points.
• Specific environmental attributes are more important selling points for women than for men.

Where to Start?

You're thinking, "I like the concept, but how do I even start moving my company into the position of doing something like marketing on environmental claims?"

We tracked down Gillian Christie, founder and CEO of Christie Communications, a marketing firm specializing in organics that's taken start-up companies from "no name" to category leaders. We expected a complex answer on how an individual floriculture business should approach sustainability.

"Honestly," said Gillian, "it starts with one person doing one good thing."

Jennifer Duffield White is editor-at-large of GrowerTalks magazine and author of GreenTalks, an e-mail newsletter on sustainability. CLICK HERE for your free subscription to GreenTalks.