Sustainability Conversations » Marketing

When brands are not succesfully ‘talking the walk’

admin — Tue, 20 Oct 2009 08:06:02 +0000

Grail Research, a global strategic research and decision support firm, has published a new report late last month, Green Revolution, showing (among other things) that the majority of (U.S.) consumers are unaware of major brands’ sustainability initiatives.

Probably as a result of a ‘sustainability noise overload’, greenwashing-induced skepticism, eco-fatigue … or simply ineffective communications, it appears that the great majority of consumers (in this case 85%) have no idea about what pioneering companies such as Estee Lauder, Hewlett Packard, Unilever, Nestle and Intel are doing in terms of sustainability and CSR.

Surprising? Not really. While corporate reputation and brand image are converging, the gap between a company’s responsible initiatives and consumers’ perceptions and … ultimately decisions still remains important. And not properly addressed.

While companies have been pressured to practice what they preach, i.e. ‘walking the talk’, it is also critical to be effectively able to ‘talk the walk’ as well:

By being transparent and authentic: 63% of consumers rely on product labels as their primary sources of information about green companies and their products, only if product labeling does not lead to confusion.

By leveraging the right communications channels (as well as the right messages), that engage consumers, leverage their experiences and interactions with brands and encourage peer-to-peer evangelism, through word of mouth conversations (both online and offline), which are considered as more trusted sources of information (45%) than advertising (38%) or company websites (18%).

So in the end, isn’t it more a question of ‘are we allocating marketing & communications budgets properly?‘ What are you thoughts?

15 Sustainability Trends Changing Biz & Comms Landscape in China

admin — Sun, 27 Sep 2009 04:27:50 +0000

Clownfish has recently identified 15 sustainability trends for 2009/2010, and that will potentially impact the business landscape, and therefore Sustainability / CSR communications in China.

Some trends are more of a very long-term evolution that goes much beyond 2010, i.e. energy efficiency, legal requirements , etc.. as there are still holes in the system such as weak law enforcement, economic performance/environmental protection dilemma, etc…

However it is a pretty comprehensive list and Clownfish points out to some trends that will largely impact the way businesses will effectively communicate (or are already communicating) their sustainability performance, and how they will have to engage with their stakeholders. It includes:

From greenwashing to green identification

Chinese consumers may soon become aware of the concept of greenwash – the deceptive use of green marketing. In Taiwan, 23% of the public already believe that claims about sustainability are just a new marketing technique (cyberone.tw 2008).

Some Chinese furniture companies have made ‘green’ claims and plastered unverified green labels all over their packaging. Yet officials have revealed that many items are actually a health hazard – far from the environmentally and socially responsible image that their advertisements would have you believe.

One way or another, companies that turn themselves ‘green’ overnight or simply use ‘green’ iconography will soon have to face the consequences. Consumers expect companies’ sustainability to be real and transparent, not a manipulative tool. At Clownfish, we believe that it is about creating compelling communications, underpinned by fact, with a clear call to action for consumers.

From offline to online

Brands can no longer hide behind their TV ads or billboard posters because of the power of online search. Consumers can find information about anything, anytime, and they are actively seeking information about the brands with which they interact. In 2009, it is going to be increasingly important for brand image to match company behaviour. Blogs such as Tianya and Sohu, where people have open discussions about anything, anytime, often have more influence on consumers buying habits than a company’s advertising.

The recent claims made about harmful substances in Jonhson’s baby products have escalated, with some people even claiming adverse effects after using the products. Although the Chinese government has cleared Johnson’s name after careful investigations in March, the active bloggers of the world have spread the incident across the internet, damaging the brand’s reputation considerably.

So brands must use clear, genuine, and authentic messages that promote transparency. As this research hows there is a positive correlation between transparency and trust – It’s about being tangible.

From external claims to internal change

The health and safety standards of products have always been a concern for the Chinese public and this concern is not going away anytime soon. In reaction to this, many companies have adopted marketing strategies to emphasise that their products are ‘natural’.

Clownfish predicts that this emphasis on nature will soon become intertwined with greater environmental and social impacts, that go beyond health and safety, such as carbon emissions, waste production or water usage. As the awareness around these issues grows, business models will start to change – not only for the good of the world, but also because they offer real business opportunities. Clownfish suggests that those companies that get ahead of the game and address their environmental and social impacts now will be the successful companies of the future.

From company claims to external verification

Consumers no longer passively accept news and product information thrown at them by marketers, ads, or their peers. 64% of consumers want third-party verification of green claims according to the GfK-Roper’s 2007 report. Some partnerships are already developing between NGO’s and large organisations, for example Lenovo and five Chinese NGOs, McDonald’s and Greenpeace, and Coca-Cola and WWF. As this trend continues in 2009, there needs to be a balance between credibility and values for both the company and the NGO. This will help to retain the trust of consumers.

When it comes to comes to the increasing role and impact of NGOs in China (that Clownfish sees as “From NGO criticisms to active involvement”), I would be much more cautious as many NGOs (non-GONGOs) in China are still operating in grey areas where clear regulations are still lacking, and where trust and credibility with the public (consumers, media) is still a major issue.

Furthermore, it is also important to look at the Chinese government’s agenda for the years to come in order to define whether green will be a top priority for business willing to secure their license to operate (and profit) in China, or whether other issues might come first, such as access to healthcare, poverty alleviation, education, etc..

To be followed!

For those more interested in global trends, Clownfish as also published a set of trends for business in more developed market, here.

Original source: Cleaner Greener China

Credit Image: Michael Turek

As a PR & Sustainability communications professional, what do I learn from marketing and advertising?

admin — Mon, 14 Sep 2009 08:40:21 +0000

The other day I realized that, on this blog, I often tend to write more about advertising and marketing, than public relations, which can potentially seem quite shocking surprising to some of my peers. PR pros indeed love looking down upon their advertising & marketing counterparts for not getting what the ‘conversation age’ is all about, i.e. for still largely operating in a ‘push paradigm’, and not a ‘pull’ one through engagement and two-way dialogue.

Well … as the communications disciplines are converging today, I believe it is important to being ‘less territorial”, but instead being open to learn more from advertising and marketing, including insights that can be extremely useful for Sustainability and CSR communications campaigns.

Here’s is what I learn from marketing and advertising, and why:

1/. Creativity & Ideas

Creativity is by far the reason #1 why I am always looking at the latest PSAs or non-commercial ads available online, such as these ones here, as they smartly leverage cultural references, social trends and emotions to get their messages and big ideas across. Needless to say that in order to cut through the clutter, creativity is a MUST for sustainability/CSR communications, as 1) the average consumer sees more than 3,000 messages a day, and 2) audiences like to be entertained, not pitched!

2/. Research & measurement for ROI

For many in the PR field, and especially in digital/social media communications, ROI measurement is a ‘holy grail’, and here, marketing has a lot to offer with an extensive set of research approaches (pre- and post-campaigns), measurement metrics and objectives. It particularly makes a lot of sense when it comes to CSR & Sustainability communications as the budgets for such programs are often cut due to budget constraints and doubts over their capacity to achieve business objectives.

3/. Messaging and target audiences

Finally, as the success of any communication campaign always depends on the right definition of target audiences/key stakeholders and messages, marketing research and studies are a gold mine of insights about people’s perceptions and related-behaviors for all things sustainable in an always changing environment.

Do you see anything else that PR & Sustainability Communications consultants can learn from advertising and marketing?

Or vice-versa?

Seth Godin’s view on ‘charity’, brands and bottom line

admin — Mon, 31 Aug 2009 02:53:50 +0000

Martin Lindstrom, brand consultant and author of “Buyology – Truth and Lies About Why We Buy” interviewed Seth Godin for Advertising Age about the nature of charity for marketing and brand reputation purposes.

Best seller of management and marketing books including “All Marketers Are Liars“, Seth Godin here questions again the nature of charity and its profitability and benefits for brands.

You can chwatch the video here.

Pretty cynical about brands’ move to embrace social and environmental causes, Seth Godin shares with us his take on the topic:

Not every brand needs a charity plan
Charity has to be integrated in the brand, and make sense overall to be credible
Consider whether you want to join the sustainability/climate change-trend, or if you want to use your ad budget otherwise (see BP case)

Some of my thoughts:

I agree with Seth when stating that not all brands need a ‘charity’ plan – as not all brands can meaningfully and trustfully engage their publics (i.e. consumers, and also employees, etc.) on social or environmental causes. Such involvement into causes should not be opportunistic – your consumers are not dumb and (please remember) they are extremely cynical about any CSR, Sustainability and social cause move.

Any social cause involvement has to be deeply rooted in the brands’ DNA and overall purpose – it also has to be aligned with the company’s core values and strategic objectives. Your first word here is CREDIBILITY. The now ‘too famous’ BP trip to ‘Beyond Petroleum’ and back again to ‘British Petroleum’.. is (sadly) an example of how brands need to think twice.

However, I believe we need to be clear with the terms we are using. Can we put ‘charity’ at the same level as Sustainability and CSR? Philanthropy is intrinsically different from cause marketing, social/environmental purpose marketing and sustainability at large (and more at an operational level). Factors at play, potential impacts and results indeed vary a lot among all these topics. And so does the ROI. We cannot put everything in the same basket.

Furthermore, I do not think that “we will still be cheated and lied to by cynical producers” because consumers are the ones in control today. They see behind the curtains of your brands and, thanks to the transparency and the immediacy enabled by the internet, no company can hide anything from them anymore. Cynical brands can potentially be ‘rewarded’ with no increase in sales and weak corporate and brand reputation.

In the end, if a company wants a) invest in a cause and b) engage its consumers to enhance its brand, signing a check to a NGO and getting some media coverage about it is clearly not enough. Consumers have moved from viewers to collaborators. Brands need to take advantage of this and engage consumers on issues that matter to them and that provide them with a greater purpose. The key here is to enable your consumers to become ‘change agents’

Some new and (old) rules prevail here:

Do not consider your campaign as a mere PR (or Advertising) looking good exercise cos’ your consumers might not think you are as handsome as you may think!
Do not not greenwash and mislead your consumers cos’ you will be breaking the ‘trust’ agreement that links you to your consumers, and also your employees, NGOs, investors, etc.
Do not switch from one cause to another too often and support too many causes – it may give vertigo to your consumers
Do not focus on a cause that does not resonate with your target audience, and that does not enable great social change on the ground.
Partner differently – learn how to give up control with your customers and let them co-create change with your brand
Converge around a powerful idea, and position yourself as it public advocate and converter.

Green brands: beyond products features, it is about your corporate reputation

admin — Mon, 27 Jul 2009 06:30:35 +0000

While reading this blog in my Google Reader, I discovered the results of this 2009 ImagePower Green Brands survey conducted across seven countries – the United States, the United Kingdom, China, Brazil, India, Germany and France - by WPP agencies Cohn & Wolfe, Landor Associates and Penn, Schoen & Berland Associates (PSB) as well as independent strategy consulting firm Esty Environmental Partners.

According to the survey, consumers in both developed and developing markets ‘buy green’ not only because of eco-friendly product features but mostly because green credentials relate to corporate reputation and are another proof of companies’ and/or brands’ honesty and trustworthiness (i.e. transparency, accountability).

This shows pretty well that corporate reputation and brand reputation are now inextricably linked. For consumers, it is less about the products and more about the brands. Consumers are questioning existing brand behaviour and asking whether they believe in brands and/or companies’ overall practices (which comes down to corporate DNA, values and strategic priorities).

The advantages of going green are not in increasing sales but rather in reinforcing corporate reptuation, enhancing relationships and/or rebuilding trust with key stakeholders such as employees, etc.

Therefore, I believe the graphic below can be understood as an assessment of the some of the most trusted corporations as well as the greenest brands in each given market.

And you, what do you think?

China :: Youth Trends and Implications for Your Sustainability & CSR Programs

admin — Fri, 05 Jun 2009 06:19:21 +0000

Since I arrived in China, I have always been fascinated by the Youth here (my peers, I am still below 30), and especially the post-90s generation which has now emerged from the great changes the Chinese society has experienced over the last decades: a whole society shifting from a planned economy to a market economy, from a traditional society to a modern society, and now a risks society (recession, etc.)

Well, the other day I came across a very interesting marketing research “China Youth Trends and Business Implications” published by China Youthology (青年志) – an innovative agency which works on brand-youth connection in the China market – and I found great insights on deep-rooted changes in Chinese youth’s values and lifestyles, and how it affects the ways companies in China should approach and leverage their Sustainability/CSR programs to better engage and ‘connect’ with the Chinese Youth. ‘Sustainability’ and ‘CSR’ are the social currency that the young generation will identify themselves and build relationships with others in their communities.

See the slide share presentation below that gives a great overview of China Youthology’s findings (or download the full-report here).

I have liked this research report so much that I have also extracted some of the sustainability-relevant parts of it, Enjoy!! no matter how long it is

1. The emergence of a ‘New Citizen’

The young generation grew up with Chinese economic reform and open-door policy. As the single child generation, they have been coined as ‘little emperors’ and labeled as selfish, irresponsible, and rejecting of traditional values. In 2008, when youth spoke up during the Tibetan unrest, showed concern during the Sichuan earthquake, and great pride at the Beijing Olympics, it caught many people by surprise. This generation is now known as the ‘bird nest generation’. Issues of social justice and equality have become relevant and visible to common people. And the Internet has empowered youth as a tool to express their opinions, exchange ideas, form communities, and make a difference.

Marketing/Communications implications?

- Corporate Social Responsibility under scrutiny: CSR is no longer a ‘nice to have’, but a must-have quality of corporations.

- Stop talking, Prove it (Walk the talk and talk the walk): Empty slogans are transparent and out of date. Even donation and charity campaigns now risk the perception of trading money’ for media attention. Young people respect sincere and long-term efforts.

- Get it Louder through Communities: The long-term, down-to-earth efforts need to be connected with the local communities through which young enthusiasts are taking small actions. Only by this means will efforts become ‘social currency’ for young people to talk about.

2. New Life: From indulgence to sustainability; pains of modernity and risks awareness

While the youth enjoy the ‘fruits’ of modern life, they’ve also started to feel the ‘pains of modernity’ at the same time: the polluted environment, the growing incidence of diseases in younger age, the severe issues of food safety (melamine crisis), and now the economic crisis. They have realized and experienced the many risks in the society and in their life, and they aspire a life and world that is more sustainable.

Marketing/Communications implications:

- Knowledge marketing: The trend of sustainability has been seen in the developed markets for years. However what’s different (and more challenging) in the China market is the presumption of guilt of corporations. When news (true and false ones) about product safety/ quality breaks, they spread dramatically and usually devastate the brands. Aside from reacting to the crisis responsively (by various ways of conventional crisis PR), companies still need to learn better ways to constantly communicate with their customers to ease the tension and concerns caused by asymmetry of information.

- Sustainable products: Safe is not good enough. The increasing needs for environmental friendly, natural, and healthy products has become inevitable. Concerns about health issues have become big barrier for many brands in the categories of food, skincare, home furnishing, and others. And it marks the precursor for innovation towards higher sustainability for many brands.

View more Microsoft Word documents from chinayouthology.