green branding and india
TRANSCRIPT
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Awareness
Consideration
Purchase
Awareness
Consideration
urchase
C O P Y R I G H T 2 0 0 8 , S T R A T E G I C O X Y G E N
The green factor
HOW, WHEN AND IF GREEN MARKETING
CAN IMPACT YOUR BRAND
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PLEASE CONSIDER THE ENVIRONMENT BEFORE CHOOSING TO PRINT THIS DOCUMENT.
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Introduction
You cannot escape the onslaught of green-
driven messaging. Turn the page of anynewspaper, visit any well-known website
it's there. Wherever you stand on the issues
and/or the messages, this onslaught of mar-
keting is seeping into every area of life.
Even within the past year, as we were
tracking green-related messaging, we saw
significant shifts. In 2007, when U.S. busi-
ness people were asked which messages
mattered most to them in server purchasing,
the message of power consumption ranked
eight out of nine choices. Today it is fifth,
and even higher in some segments. (See
Chart B on page 4.)
The call to Go Green is a visceral and
emotional one for many brands, and the
marketing method has often been far more
passion than science. We believe that apply-
ing more analysis to our marketing
decisions will help generate more rational
1
IN A TIME WHEN
WE ARE
INCREASINGLY
CHALLENGING
OUR LEADERS
TO LISTEN TO
ENVIRONMENTAL
SCIENTISTS, WE,
AS BRANDS,
MUST ALSO
LISTEN TO OUR
CUSTOMERS
AND DEVELOP
A MORE
SCIENTIFIC
APPROACH TO
MARKETING
GREEN.
This brief overview of Strategic Oxygen's GreenFactor research (v1.0)
looks at how effective green marketing would be for 26 of the world's
top technology brands, translating these findings into information any
brand can use. The research is based on the input of 3,500 BtB influ-
encers from around the world.
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support, and will further build green
budgets, green programs and potential
changes in green products and services.
This white paper summarizes Strategic
Oxygen's recent GreenFactor research(v1.0), which compiles the views of BtB
influencers worldwide on issues like who
they see as green leaders, who they believe
should increase their green focus, how like-
ly they are to purchase green technologies
and whether or not they would expect to
pay a premium for those technologies.
This research has also uncovered the per-
ceived and actual barriers to increased
green adoption.
By correlating these attitudes and beliefs
with Strategic Oxygen's INE tool, a brand
can clearly identify where and how to best
communicate with specific targets on
green-related issues.
The intent here is not to solve global warm-
ing. Instead, we are laying out a simple
framework for maximizing the energy and
resources your brand puts toward green ini-
tiatives. If green is about sustainability, so
too should green marketing begenerating
at least enough volume or premiums to pay
for the green marketing programs.
To be or not to be green?
Green marketing is in. And if we believe in
the premise of the green mantra (that we
are all responsible for environmental care),
then there is logically no choice. We must
go green. However, securing the
resources to do so, and using them effec-
tively, is difficult. Producing green
marketing is not as easy as putting a leaf on
a PowerPoint template, as one of our clients
jokingly suggested.
There are three ugly issues we must address
in order to get real traction:
1) the threat of recession tightening not
only ourbudgets, but also our customers'
budgets;
2
ENTER-
PRISENETADMIN
ENTER-
PRISEITM
ENTER-
PRISECIO
MID
MARKETITM
MID
MARKETCIO
SMALL
BUSINESSCXO
TOTAL
U.S.
MARKET
48%
23%21%
34%
14%
22%19% 17%
2008
2007
50%
41% 41%
50%52%
48%
PERCENT OF VARIOUS MARKETS THAT VALUE A GREEN MESSAGE
IN TECHNOLOGY MARKETING, U.S. COMPANIES ONLY
CHART A
PERCENT OF VARIOUS MARKETS THAT VALUE A GREEN MESSAGE
IN TECHNOLOGY MARKETING (U.S. MARKETS ONLY)
SOURCE: Strategic Oxygen GreenFactor Study v1.0, 2008
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2) increased pressure around ROIagain
within our brand and among our cus-
tomers; and
3) a widening set of geographies to reachand manage.
As brands, we must consider these issues
and ask the right questions before we blind-
ly start sending green messages. While
some brands are well positioned to turn
green marketing into brand sustainability,
for others the chance to charge premium or
improve brand value might be limited.
ASK: IS THERE AN UP-SIDE FOR US?
This must be one of our first questions.Few brands can afford to allocate valuable
media landscape, product resources or con-
tent-development budgets unless there is
some form of measurable up-side. Why
market to a target who has already stated
he does not expect to pay a premium for
your green technology, or who is not plan-
ning to adopt enough green products to
make the economics viable? The key here
is to find the targets who are open to the
technology and the potential extra cost, and
market there.
ASK: LEAD OR FOLLOW?
Not all brand perceptions are created equal.
If your brand is seen as a leader in the
development of green solutions, you carry
both an advantage and a liability.
Customers are open to you, but they also
expect a lot. If you are not seen as a leader,
you will need to seriously consider how
much investment is worthwhile at this time.
ASK: PRODUCTS OR PROMOTIONS?Often in new categories, pseudo-associa-
tions can be as effective for a brand as
fundamental investments. For example,
customers are often confused about the new
rules (i.e., what really constitutes being
green?) and are looking for leadership. At
the early stages of a new constructlike
greenfew, if any, brands are capable of
investing in the new, defining products. In
some cases, brands can instead piggy-back
on the movement through marketing com-
munications. In other words, for a time, youmay be potentially proclaiming more green
than your products or services truly offer.
But knowing whether to invest in green
technology or just green marketing
demands a clear understanding of your
brand and your market. It also requires an
understanding of what it will take for your
targets to adopt green technologies.
Knowing how much they might expect to
pay as a green tax is critical.
Developing an amazing green product that
nobody knows aboutor believes you can
delivercan be as irresponsible as using
toxic components. Yet, having a marketing
proposition with no weight behind it, espe-
cially if you are a brand that is expected to
deliver actual substance, can be as compro-
mising as a luxury liner without life boats.
In our work around the world, we have
seen how environmental issues are driving
brand decisions and messaging. (See chart
on page 4.) The risks can be high. Think
how costly it would be to carve out 10 per-
cent of your budget for programs that have
virtually unpredictable outcomes. Crazy!
Yet this is the approach many brands have
so far taken to their green marketing.
3
WHILE SOME BRANDS ARE WELL
POSITIONED TO TURN GREEN MARKETING
INTO BRAND SUSTAINABILITY, FOR
OTHERS THE CHANCE TO CHARGE A
PREMIUM OR IMPROVE BRAND VALUE
MIGHT BE LIMITED.
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The information in this paper should help
you sculpt and justify your marketing
actions, based on:
a) which quadrant of the Green Chart your
brand is inor how close you are to
what we call the Green Zone (see page
6);
b) whether or not the prime targets for
green technology are influencers you are
comfortable communicating with; and
c) whether you have something substantive
to talk about. By substantive we mean
anything from educating and enabling
targets to understand the value of green
investments to promoting your brand's
technological breakthroughs.
It could be that after doing this informal
assessment, you decide not to allocate sig-
nificant funding toward green marketing at
this time, but instead to wait it out for bet-
ter opportunities.
Find the right customers(those who are willing tobuy and expecting to pay)
Why push water uphill? If we proclaim the
virtues of green technology and it falls on
deaf ears, then we have acted with poten-
tially noble intent, but have wasted our
communications resources. Or, if those who
listen will neither adopt nor expect to pay a
premium for green technology, we have
been chasing a red herring. Such are the
dilemmas we face as brands.
The GreenFactor research has proven that
there are some simple dynamics to consider.If a market is willing to adopt green technol-
ogy, we should be offering it. If a market
expects to pay a premium, we should be
charging one. The combination of both of
these factors is the sweet spotthe Green
Zonethat deserves our immediate atten-
tion. Success with this ripe segment could
even justify and fund green investments in
other markets.
The whole world is affected by environ-
mental issues, but we cannot boil the oceanin an attempt to get improvement every-
where. What CMO has the funding to
launch a complete, global, green marketing
program anyway? By focusing on the suc-
cess quadrant, we can build case studies of
success and generate ROI toward future ini-
tiatives.
4
CHART B
HOW GLOBAL MARKETS RATE THEIMPORTANCE OF GREEN MESSAGESIN TECHNOLOGY MARKETINGOUT OF NINE POSSIBLE MESSAGE CHOICES
SOURCE: Strategic Oxygen GreenFactor Study v1.0, 2008
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5
The upper-right quadrant of the chart above
indicates, by geography, which targetsexpect to pay a premium forandare open
to adoption ofgreen products, versus
markets where premium expectations are
there but high-volume adoption is question-
able.
The truth here is that we cannot assume that
all markets behave in the same way.
THE TRUTH HERE IS THAT WE
CANNOT ASSUME THAT ALL
MARKETS BEHAVE IN THE
SAME WAY.
CHART C
WHICH GLOBAL MARKETS ARE READY FOR GREEN MARKETING
SOURCE: Strategic Oxygen GreenFactor Study v1.0, 2008
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readily to those in or near the top right than
the lower left.
Following are some questions we must askif we plan to maximize our current position:
THE GREEN ZONE
If we are already in the Green Zone, what
will sustain this position for us? What
types of communications and offers
should we be developing?
If we aren't in the Green Zone now but
targets expect us to become more green in
the future, how can we deliver on that
perception?
Are the brands close to us partners orfoes?
Is the market expecting to pay premiums
on green products? Or are they not ready
for that differentiation yet?
Are we consistent globally? And does that
matter?
THE EDGE OF THE GREEN
What types of marketing could move us
into the Green Zone?
Are we capable of moving to the Green
Zone by developing green products
and/or services?
Could we partner with other brands who
are also in the Edge of the Green to mul-
tiply the value of our activities? If so,
who?
Can we focus on green-believer targets
with whom we already do naturally well,
versus shooting blindly? If so, who?
THE MASSES
Can we differentiate our brand with a
green breakthrough?
Should we just lie low for a while, espe-
cially if we do not have funds or
products?
Are we in the Green Zone or on the Edge
of the Green in any other geographies? If
so, can we lead from there?
Turning barriers intoassets
When asked what is keeping them from
adopting green technology, the most com-
mon answers for business-to-business
influencers worldwide were price and the
unproven ROI.
A key issue here is that brands have failed
to adequately educate targets about the
value and importance of green technology.
This new research sends a clear signal to
brands: Invest in moreand more believ-
ableeducational activities. Committing to
targeted marketing and highlighting realcustomer success stories will help, as we
will cover in the next segment,
Communications as a Weapon.
Another thing a brand can do to improve its
position in the Green Chart is to recruit
advocates from within target companies.
This can be tricky. At Strategic Oxygen, our
findings show that the most passionate
advocates for green tend to be the most
peripheral to the day-to-day technology
purchasing. Line-of-business (LOB) man-agers are common advocates, as are CXOs
(every C-title position except the CIO). The
secret is to empower LOBs to formally or
informally include green requirements in
their RFPs (especially in the largest enter-
prises) and to encourage CXOs to ratify
purchase recommendations only if there is
some sense of green being delivered.
7
WHEN BUSINESS-TO-BUSINESSINFLUENCERS WORLDWIDE
WERE ASKED WHAT IS KEEPING
THEM FROM ADOPTING GREEN
TECHNOLOGY, THE MOST COM-
MON ANSWERS WERE PRICE
AND THE UNPROVEN ROI.
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8
Having leverage with these advocates is
tougher for brands in The Masses segment,
but for brands in the Green Zone, it is virtu-
ally a responsibility if they want to sustaintheir position there.
Chart E on the left shows the best compa-
nies to target for recruiting advocates of
greenby countryincluding the number
of employees, and the job title that is most
likely to be supportive of green.
Communications as aweapon
Strategic Oxygen has produced a global
segmentation of green-is-important targets.
As we can see from Chart F, there are clear-
ly cross-regional differences. It would be
foolish, and naive, to assume that all of
these targets share the same communica-
tions needs across the globe. They may all
care about one core issuegreen issues
but their consumption patterns, and even
their reason for caring about green, can dif-
fer greatly. Our tactics for reaching them
must, too.
If there is an underlying theme to this white
paper, it is that we cannot deliver the same
green value toor project green adoption
withevery target in every situation.
Strategic Oxygens toolsets offer brands a
sensible pathway toward profitable invest-
ments in green communications and
therefore encourage further investments. In
addition, Chart G on page 10 identifies key
messages and actions to take based on acountrys current stance on green issues.
IT MANAGER1000+MEXICO
CXO100-999U.S.
CIO1000+BRAZIL
CIO1000+CANADA
HOT
TARGET
ADVOCATES
HOT
TARGET
SIZE
LOB1000+ITALY
LOB1000+U.K.
CIO100-999FRANCE
LOB1000+GERMANY
HOT
TARGET
ADVOCATES
HOT
TARGET
SIZE
CXO1000+JAPAN
CIO1000+AUSTRALIA
CIO1000+INDIA
HOT
TARGET
ADVOCATES
HOT
TARGET
SIZE
AMERICAS
EMEA
APAC
WHERE TO RECRUIT GREENADVOCATES
CHART E SOURCE: Strategic Oxygen GreenFactor Study v1.0, 2008
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9
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM
EMEA
HIGH
HIGH
HIGH
MEDIUM
HIGH
HIGH
MEDIUM
MEDIUM
US
MEDIUM
MEDIUM
HIGH
HIGH
MEDIUM
HIGH
HIGH
MEDIUM
HIGH
MEDIUM
LA
HIGH
HIGH
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM
INDIA
WEBCASTS
VENDOR EVENTS
WWW.VENDOR
WWW.GENERAL INTEREST
VIRTUAL WORLDS/SECOND LIFE SITES
TV/RADIO
PODCASTS
INDUSTRY ASSOCIATION
INDUSTRY CONFERENCE
TRADE SHOW
SPONSORED SEMINAR
WWW.TECHNICAL INFO
WWW.TECHNICAL PRINT
RSS
WWW.BUSINESS PRINT/NEWS
WWW.MICROSITES
WWW.ROI TOOLS
WHITE PAPERS
TECHNOLOGY ANALYSTS
WWW.SEARCH
WWW.IT FORUM / BLOG
VENDOR PRINT
CONTENT INSERTS
INDUSTRY PRINT
TECHNOLOGY PRINT
BUSINESS PRINT/NEWS
DIRECT EMAIL
EMAIL (NEWS/SUB)
CATALOGS
DIRECT MAIL
EFFECTIVENESS OF GREEN MESSAGINGWITH KEY MARKETING VEHICLES
CHART F SOURCE: Strategic Oxygen INE v6.0
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10
Find a way to persuade that the
green premium is worthwhile
Find a way to persuade that the
green premium is worthwhile
Build consideration of green
Market green offerings with a premium
Focus big on building awareness
and educating on green
Build awareness of green
Wait until proven
elsewhere
Wait until proven
elsewhere
Build awareness & consideration of green
Explain ROI of green premium
Build awareness & consideration of green
Explain ROI of green premium
Build awareness of green
Build awareness & consideration of green
Explain ROI of green premium
LATE ADOPTER
OF GREEN
NEEDS CONVINCING
OF GREEN
IN THE GREEN ZONE
OR ON THE EDGE
HOW TO MARKET TO VARIOUS COUNTRIES BASED ON HOW GREEN THEY ARE
CHART G
IF THERE IS AN UNDERLYING
THEME TO THIS WHITE PAPER,
IT IS THAT WE CANNOT
DELIVER THE SAME GREEN
VALUE TO OR PROJECT THE
SAME ADOPTION WITH EVERY
TARGET IN EVERY
SITUATION.
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11
Recommendations
The flow diagram on page 12 delivers a
simple framework for thinking through
green marketing investment strategies.
Remember, no brand can be green or rele-
vant to all targets in all situations.
Some things to consider:
It may be that your green efforts should
be based on building an image ofper-
ceivedgreen strength. Just the act of
promoting green might help raise your
status closer to the Green Zoneespe-
cially if it is paired with an attempt toeducate on the potential ROI of green.
Your brand may choose to focus its green
offerings on an organizational commit-
ment to green.
Your brand must be in or around the
Green Zone or on the Edge of the Green
to yield some level of medium-term pay-
off to green marketing. This pay-off could
involve an increased association with
green initiatives and/or the ability tocharge a premium for green products.
Your brand might want to start with
friendlier markets firstthose that say
they will be more and more open to green
technologies as the ROI is proven, and
those that expect to pay a premium for
green products.
If you are savvy about your approach,
your brands green marketing program
could, in many cases, become self fund-
ing. For example, consider the pay-off if
a five-percent allocation of marketing
dollars toward green promotion enables
us to charge an additional ten-percent pre-
mium for our products.
Todays technology brands have choices to
make when it comes to how they are going
to respond to the current green momentum.
These choices are interconnected by nature
and will have differing outcomes. We must
realize that targets see a multitude of differ-
ent brands in the green arena. Some makeactual stufflike HP, Dell and Apple
and therefore have practical ways of being
green. Otherslike Google and
Microsoftare perceived as being quite
green even though their products are not
manufactured. This may be because they
are major brands with an inherent and
imbedded reputation as leaders.
While you may discover that now is not yet
the time for your brand to make significant
investments in green, its crucial to makethis an informed decision. Not all brands
are entering the green arena on equal foot-
ing. Knowing where your brand stands, and
where your targets stand, will make every
dollar you spend on green marketing worth-
while.
CALL OR EMAIL STRATEGIC
OXYGEN TO OBTAIN THE
COMPLETE RESULTS OF THE
GLOBAL GREENFACTOR V1.0
RESEARCH. THIS DATA IS
AVAILABLE AT NO COST TO ALL
TECHNOLOGY BRANDS (THOSE
TRACKED AND THOSE NOT
TRACKED). WE ARE MORE THAN
HAPPY TO SPEND THIRTY
MINUTES RUNNING THROUGH
THE DECISION TREE (ON PAGE 12)
WITH YOU AND YOUR BRAND.
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12
GREEN MARKETING FLOW CHART
CHART H
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COPYRIGHT 2008 | STRATEGIC OXYGEN | WWW.STRATEGICOXYGEN.COM | WWW.MONITOR.COM
EDITORIAL CONSULTING, DESIGN & PRODUCTION | JULIE RYBARCZYK | [email protected]
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Strategic Oxygen, a member of the Monitor Group, specializes in making the art of
marketing more scientific. Its marketing-planning tools are produced and used globally.
Based on over 100,000 interviews with technology influencers about their purchasing and
consumption patterns in markets as diverse as Mexico, Brazil, Russia, India, the PRC
(Tier III/IV) and the classic mature markets Strategic Oxygens patent-pending INE tool
provides valuable insights on sales and marketing strategies. Over the last five years, these
tools have been used to model and plan over $5 billion in sales and marketing activities in
BtC and BtB markets for some of the worlds largest technology brands.
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FOR MORE INFORMATION, CONTACT MICHAEL GALE AT [email protected].