Archive for April, 2009

Hey, Frito Lay: Happy Earth Day!

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Sunchips has a reason to toot their own horn. By 2010, they will produce the first 100% compostable (commercial) chip bag.

Frito-Lay is telling consumers that it is using renewable materials with a print and online ad campaign that includes a Web video showing a SunChips bag crumbling in the earth over 14 weeks, and an insert of a fully compostable package in magazines, complete with directions to toss the sample into an active compost bin.

Sunchips has also partnered with National Geographic (who knew?) and has a “WHAT WOULD/CAN YOU DO?” campaign. Oh and they use some solar power to make the chips and they have some health claims too (“Less salt than you think”???, etc).

The point is, Frito Lay has captured the notion that consumers are taking small steps and want to hear about the steps that companies are taking-even if they aren’t all the way there yet.

Well executed, Happy Earthday Frito Lay.

From the GreenEffect.com site:

SunChips and National Geographic have joined forces to create the Green Effect, an initiative to inspire individuals to spark a green movement in their communities.

YOU could be the one to make a difference in your community—for the planet! Submit a description of your Green Effect idea by June 8, 2009. Ten finalists will be announced July 7, 2009. Online viewers and a distinguished panel of judges will review these inspiring ideas.

We’ll award $20,000 each to five people or groups that have the best ideas for green change. The five winners will also be profiled in National Geographic, and the winners will travel to Washington, D.C., to share their projects with environmental leaders.

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Philanthropy in this economy: Some notes…

For the average consumer/donor,giving is shifting. Cause consumerism was stealing share from donations and actual volunteerism. With the new economy, giving time and skills competes with straight up donations. As unemployment soars, workplace pledges and company matches are dropping off.Micro-philanthropists are shaking things up. High end donors are still giving but with much more caution and to familiar, well-established organizations. Donors want to be engaged- from the moment they give until the money is used.Donors want choices- they want to feel like they have say in how their money is used.


Shifts in Charitable Giving…
A new academic study has interesting ramifications for the world of philanthropy. Behavioral economists Dan Ariely, Anat Bracha and Stephan Meier found that one of the main reasons people give to charity is “image motivation” (Economist.com 1.15.09). That is, they wish to be seen by others as charitable people.

Actual giving
:

Micro-philanthropy:  Less is the new more

Donor as investor: return on social investment= emotional satisfaction

Keeping my money in the community: Giving locally

Beyond the cash: Active donors- money just isn’t enough,

Giving together:  As many as 1,000 giving circles have formed in the past three years to focus on causes their members decide on.

Donor notes:

New philanthropists: Affluent givers, often from the VC sector, who are passionate about their cause and cautious about where their money goes: Gifts include time, skills, strategy consulting and monetary donations.This new breed of philanthropist also wants to be given a clear path in how they can give of their time and skills to create the greatest impact.Many are looking for ways to measure their investments.

Comfort zone: Established charities play on donor need for security and concern in a climate of mistrust (see: AIG, Madoff, etc). Blue Frog surveyed 2000 people 12/08 and  found that 28% of all those interviewed (that include current non-donors) said they were less likely to start supporting a new charity. This rose to 34% amongst those aged 65 and over (and up to 40% amongst those 65+ that described themselves as donors)

Micro Philanthropists (skews younger) : donors who give smaller amounts, want to track the money and connect with end results.

Types of contributions:

With the economy in the trash, we see more empathy from consumers than ever. They believe “we’re all in this together” (against the man) and are concerned about themselves and their neighbors.
Giving DIFFERENTLY
-Consumers are likely to give differently- using different vehicles for giving in the recession (volunteering vs. donating) and being even more thoughtful about where there money goes and how it is used.

-Giving LOCALLY — to organizations that are providing resources in their communities

- Giving with TIME. Renewed volunteerism? Direct volunteerism has been down (as well as direct charitable giving) but with money stretched consumers may return to volunteerism  (family together time, teaching lessons about what’s happening in the economy, internships between jobs and training in order to be ready for job cuts,etc)

-Choosing the cause: Consumers want to FINGERPRINT their cause and they want some CONTROL. See: Tis Best gift card, Subaru Share the Love, Kenneth Cole/Charity, GOOD Magazine (choose your price and your charity).

-New/old causes: We’ve seen April = green…and with hunger/homelessness top of mind, we’ll see more emphasis on these causes throughout the year. (AIDS in Africa and the Rainforest feel FAR away and much less releveant)

-Giving in groups: Mobilization 2.0, pooling funds, texting to give, using facebook cause app, twestivals… giving as we once new it has changed a lot.

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The Green Trust Gap

Consumers as a whole are hating on “the man” and demanding more transparency. In the Cause/Green space this especially acute.

BBMG  Conscious Consumer Report 2009: findings:

Consumers’ lack of trust does not mean lack of interest– 77 percent of Americans agree that they “can make a positive difference by purchasing products from socially or environmentally responsible companies,” and they are actively seeking information to verify green claims. Consumers are most likely to turn to consumer reports (29%), certification seals or labels on products (28%) and the list of ingredients on products (27%) to determine if a product is green and does what it claims. Consumers are least likely to look to statements on product packaging (11%) and company advertising (5%), signaling deep skepticism of company-driven marketing.

  • Interest in Green Holds Despite Tough Economy. Nearly seven in ten Americans agree (67%) that “even in tough economic times, it is important to purchase products with social and environmental benefits,” and half (51%) say they are “willing to pay more” for them.

  • Price and Performance Still Paramount, But Green Gains Ground. Price (66% very important) and quality (64%) top consumers’ list of most important product attributes, followed by good for your health (55%) and made in the USA (49%). But green benefits have increased in importance since last year – including energy efficiency (47% very important in 2008, 41% in 2007), locally grown or made nearby (32% in 2008, 26% in 2007), all natural (31% in 2008, 24% in 2007), made from recycled materials (29% in 2008, 22% in 2007) and USDA organic (22% in 2008, 17% in 2007).

  • Wal-Mart Tops List of Most and Least Socially Responsible Companies. When asked unaided which companies come to mind as the most socially or environmentally responsible companies, 7 percent of Americans named Wal-Mart, followed by Johnson & Johnson (6%), Procter & Gamble (4%), GE (4%) and Whole Foods (3%). Wal-Mart also topped the list of the least responsible companies (9%), along with Exxon Mobile (9%), GM (3%) and Ford (3%), Shell (2%) and McDonald’s (2%). Interestingly, 41% of Americans could not name a single company that they consider the most socially and environmentally responsible.

  • Consumers Reward, Punish and Influence Based on Corporate Practices. Seven in ten consumers (71%) agree that they “avoid purchasing from companies whose practices they disagree with”; and approximately half tell others to shop (55%) or drop (48%) products based on a company’s social and environmental practices.

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Earthday approaches, so let’s talk packaging

I am totally fascinated by packaging and how emotional it has become for many consumers lite green and dark.You all know that feeling you have when you finish that organic sustainable yogurt and then don’t know if you should recycle it (does my curbside waste management truck pick up this kind of container?) , reuse it (if I do and I use hot water with the plastic leech?), or just pull our hair out and wish for bygone days of glass jarred everything (though now it seems the lids have BPA – shutter to think- even Earth’s Best baby jars)…

Consumer awareness of renewable resource packaging is growing as they are beginning to truly understand that some of our natural resources which are used in making packaging are limited and that alternatives need to be found. Packaging, which is part of the product therefore part of the message and often the first green entry point to the product for many consumers, presents an effective vehicle on the store shelf for creating an immediate call to action with messages such as eco-friendly, recyclable, reusable, compostable, etc. Consumers want companies to think about their materials and processes for packaging and to instruct them on what to do “next”- they are looking for explicit instructions (and help) for disposing of the package properly to relieve them of clutter and green guilt.

Consumer drivers for packaging getting greener

Waste (of all forms) just feels plain dumb

Consumers are feeling pinched in every aspect of their lives and trying to cut back. When they do make purchases they want to feel savvy, they want to feel smart with their money (many feel foolish enough already, right?) and cool. This undercurrent of knowing the new right stuff, of caring about the future, the planet, has a cachet. And packaging design is a place where consumers have their eyes fixated. When there is unnecessary excess packaging it signals inefficiencies for the company they are doing business with and it leaves the consumer stuck with the problem. Less is the new more- in packaging and far beyond. Packaging is often cited as a source of waste – and a potential opportunity to simultaneously cut costs and reduce environmental impact. Consumer packaging perceptions along with considerable pressure from retailers (most notably Walmart’s Sustainable Packaging Scorecard program), has led suppliers to work harder to offer them more environmentally-friendly packaging systems. When Amazon.com announced their efforts to move to all “frustration free packaging” they were acknowledging a history of frustrated customers who for years had been trapped by extra useless packaging in their brown box deliveries.


Health: A personal and planetary collision

Consumers show the most willingness to “shop green” and pay higher price points when they perceive that it affects their personal/families’ health and wellness directly. Ever since the Canadian Govt declared BPA toxic, BPA free stickers are affixed to more than just baby bottles and increasing numbers of consumers are getting smarter about packaging and connecting the package to its contents and ultimately to their and their family’s health and well-being. The recycling codes mean more to these health minded consumers than whether it goes in the trash or in the bin, it indicates for them what types of plastics are used and the interrelation between where something is packaged, what it is packaged in and how it affects their health.

Greenvenience : Don’t burden me with the box
While consumers feel that it is the manufacturers responsibility to produce more environmentally friendly packaging (at no extra cost), they view their “job” is to recycle packaging after use, when possible. Consumers are looking to companies to provide them with easy ways to be and feel green. Eco-packaging is not simply the cutting down on packaging, through volume and subsequently weight, but may involve a complete rethink of the packaging’s role itself. (See Cargo’s Plantlove)
Can the consumer re-purpose the packaging? Re-use it? Recycle it?Recycling is the most mainstream activity that consumers are confident that they can do that actually helps the environment.   On the other hand, recycling has daunting practical difficulties. Mixing plastics can ruin a recycling batch, which makes it hard if not impossible to recycle laminated and coextruded materials. And recycling programs across the U.S. are highly inconsistent in terms of what they take, from whom and how much work the consumer is expected to do. Consumers ask themselves: What does each number mean? Does my city accept this package? Will I mess up and in some cases get charged by my city if I put it in the wrong bin? Am I better off just putting it in the garbage?

Save me money: Going green to get some green

Perceptions around packaging are increasing, that “less is more, ” as in reduced packaging will lower costs and therefore prices. Reduced packaging can be tangible and conspicuous to the consumer, especially if there’s a contrast on retail shelves with a competing product that has more packaging. Additionally, reducing packaging, in most (not all) cases, means reducing packaging costs, which in the end saves the consumer money, right? Concentrated laundry detergent bottles offer a questionable proposition- as the manufacturer saves money with less plastic resin used, lower inbound and outbound finished product shipping costs and an overall smaller carbon footprint. Does the consumer save with a lower price? Not necessarily, especially if as creatures of habit they continue to use the same amount of detergent despite the “concentrated claim”. With recession fears and motivators dominating most purchases, mainstream consumers today don’t want pay a premium for any product simply because its packaging is sustainable and they will examine the numbers and insist that the manufacturers pass the sustainable savings on to them. Last August, the low price retailer Wal-Mart unveiled their new packaging scorecard to continue their commitment of reducing packaging across its global supply chain by 5 percent by 2013, now they just need to message to consumers about they will pass along their scorecard savings.

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Live in Brooklyn? Want to have a cool/cause date night?

bagsimageCoolio green/cause activity in the community, with the community. Check it out.

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