Sustainable product & service innovation
SEIZING GREEN MARKETING OPPORTUNITIES: HOW TO LINK SUSTAINABILITY TO THE BRAND? Leuven, 25.05.2010 Ines Rothmann © Between-us
Agenda 1. The eye of the consumer: Increasing traction of sustainability 2. How to become a Hulk: A framework for linking sustainability to the brand?
The train has left the station
THE EYE OF THE CUSTOMER
The voice of the consumer Increasing impact on company’s CSR programs
Eco-based Perkonomics Rewarding green consumer behaviour
Waste Stream Design Adding value to otherwise wasted materials
Eco-metering The consumer wants to pat him/herself on the back
Green is more economic Minimizing impact by innovating product category
Which Social Issues keep Belgians awake at night? The top 5 issues around people & planet
1 2
3
4 5
Bron: GfK Consumer Scan 2009
How to become a Hulk?
A FRAMEWORK FOR LINKING SUSTAINABILITY TO THE BRAND
Effective CSR is as simple as A-B-C-D Authenticity: what issues should the company address? • Value proposition should be consistent with company values and principles? • There should be a clear link with the core business: which topics make sense and what is credible? • Avoid 7 sins of green-washing: ‘green’ should become ‘normal’ • How to increase commitment and passion throughout the company?
The authenticity gap: Who is walking the talk? Imago duurzaamheid NL energieleveranciers strookt niet met realiteit. Waardecreatie door beter reputatiemanagement.
*Sector rapport: September 2009
Effective CSR is as simple as A-B-C-D Authenticity: what issues should the company address? • Value proposition should be consistent with company values and principles? • There should be a clear link with the core business: which topics make sense and what is credible? • Avoid 7 sins of green-washing: ‘green’ should become ‘normal’ • How to increase commitment and passion throughout the company?
Business Purpose: 4 areas for value creation • • • •
Reputation Management Product Innovation Issue Management/License to operate Efficiency Gains
Balancing the focus of the CSR efforts Reputation Management
External
Innovation
Orientation
2009
1991
Internal
Issue Management Reactive
Efficiency Attitude
Proactive
Effective CSR is as simple as A-B-C-D Authenticity: what issues should the company address? • Value proposition should be consistent with company values and principles? • There should be a clear link with the core business: which topics make sense and what is credible? • Avoid 7 sins of green-washing: ‘green’ should become ‘normal’ • How to increase commitment and passion throughout the company?
Business Purpose: 4 areas for value creation • • • •
Reputation Management Product Innovation Issue Management/License to operate Efficiency Gains
Consistency: with other initiatives
Effective CSR is as simple as A-B-C-D Authenticity: what issues should the company address? • Value proposition should be consistent with company values and principles? • There should be a clear link with the core business: which topics make sense and what is credible? • Avoid 7 sins of green-washing: ‘green’ should become ‘normal’ • How to increase commitment and passion throughout the company?
Business Purpose: 4 areas for value creation • • • •
Reputation Management Product Innovation Issue Management/License to operate Efficiency Gains
Consistency: with other initiatives
Distinctiveness: from competition
The relevance of brand issues Not all players in a sector should address the same topics
Social Issue Starvation and Poverty Stewardship Health Promotion Infant Mortality Natural Energy Sources
ING Bank 8,6% 14,8% 9,9% 2,5% 13,6% Framework
Rabobank 14,9% 14,2% 12,6% 8,5% 7,8%
Sector 14,7% 15,2% 10,2% 5,9% 8,4%
Finding our sustainable customer Normal rules of marketing apply Need: to have materialism, price orientation Homebodies
Adventurers
Open-minded
Settled
Need: peace and security puritanism, security orientation
Need: to live a passionate life hedonism, pleasure
Dreamers
Rational-Realists
Organics Need: to be postmaterialism, quality orientation
Demanding
Summary
Sustainability is a double vision challenge ! 1. Think inside out and outside in 2. Act now to avoid a defensive approach 3. ABCD: Authentic, Business Purpose, Consistent and Distinctive
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Over Between-us Duurzame klantoplossingen die leiden tot hogere merkwaarde Between-us helpt sinds 1997 bedrijven, overheden en woningcorporaties in Nederland, Scandinavië en Zwitserland bij het creëren van stakeholder value door duurzame klantoplossingen. Het optimaal inspelen op de behoeften van belanghebbenden komt tot uiting in kostenreducties, kwaliteitsverbeteringen, toegenomen werknemerstevredenheid, een betere reputatie en een stijging van de merkvoorkeur. Between-us ontwikkelt stakeholder value door middel van het verduurzamen van de toeleveringsketen en het ontwikkelen van een integrale MVO strategie. Onze innovatieve, mensgerichte aanpak onderscheidt zich door de inspirerende verbinding die Between-us maakt tussen zakelijkheid en creativiteit. Between-us is actief deelnemer in de discussie rondom duurzame innovatie en maatschappelijk rendement. Zo publiceren we regelmatig cases in toonaangevende tijdschriften en geven we gastcolleges aan de Zwitserse business school IMD, TiasNimbas, de Imagineering Academy van de NHTV en het Deense Kaospilots; een bedrijfskundige opleiding voor sociale innovatie. Tot slot is Between-us initiatiefnemer van het Green Heroes Sustainable Innovation Network, een internationaal non profit platform om groene start ups en professionals aan elkaar te verbinden.
Some references