Growing Green

Three smart paths to developing sustainable products -

Presented byGroup 7

by Gregory Unruh and Richard Ettenson

Cloroxs Brita water filter Companies increasing their focus on producing environmentally friendly products.

Sustainability as a revenue-driver and as a competitive advantage.

Three strategies that can be used by companies to align their green goals with their capabilities. 1. Accentuate 2. Acquire 3. Architect

1. Accentuate
Involves

highlighting the green attributes of the current products. E.g. Church & Dwights Arm & Hammer baking soda. Repositioning of Brita water filter against bottled water.

Educate consumers and communicate about Britas green characteristics. FilterForGood website.

No

greenwashing.

 Companies

lack a green heritage in their portfolio of products.

Beyond Petroleum rebranding campaign. must align with customers perceptions.

BPs

Strategy

 Brita

filters were not positioned as green and produced by a green company. with Preserve and Whole

Collaboration

Foods Market.

Enhanced

credibility

2. Acquire
If

an organization has no brand for accentuation then it can opt for acquiring someone elses green brand. E.g.

The Body Shop by LOreal Ben and Jerrys by Unilever (Hostile Buy-out) Toms of Maine by Colgate-Palmolive

Problem

of Culture Clash and Strategic Fit. [Stonyfield Farm by Groupe Danone]

Challenges of Green Acquisitions

Scrutiny

by the green community New parents green credentials Accusations of deliberately destroying a green competitor.
o

Coca-Colas acquisition of Planet Java and Mad River Traders

Appeal of Successful Green Brands

Loyal

customer base Specialized knowledge on eco-friendly innovation and manufacturing

o

Cloroxs acquisition of Burts Bees

3. Architect
Does

the company have a history of/ an affinity towards innovation?

Could be slower than previous paths But helps in building valuable competencies! The Toyota way Green Works Cleaning Products Clorox

R & D needs its independence Result - Established the benchmark definition and best practices for a natural cleaning product and proceeded to design a line of offerings that would deliver the efficacy customers demand Accumulation of a range of new competencies

Making green growth happen

The

strategy must be aligned with the

companys objectives, goals & policies

Before

going green managers must ask

& evaluate
1. 2. 3.

If the plan is feasible ? Is it desirable ? How would it be implemented?

Feasibility

Taking

stock

of

the

assets

through

duo

dimensional approach
1.

Greenable attributes of existing products and brands, and organizational green product & brand development capabilities

Requires a careful review of opportunities to promote brands green benefits

2.

Appraising the companys green resources and

capabilities through

Reviewing process & priorities for innovation

Desirability

Assessing the strategic fit of each option with the

company's objectives & resources they can bring to bear on the green initiatives

Decide which strategy fits best & where

Acquiring v/s Accentuation v/s Architecting

Must consider
1. 2. 3.

Speed to market & investments, Reputation & Competencies that the initiative will require

Implementation

Acting on all factors that affect successful execution

Aligning green strategy with their existing product

portfolio Devoting resources and capabilities needed to achieve their strategic goals Strategy must satisfy customer's expectation & should take advantage of competitors green weakness Should address the red flag issues that could undermine implementation

THANK YOU