A blog about marketing, causes and a variety of topics in the “goodsphere”

Category Archives: Consumer Product Strategy

Products that air their (hopefully less) dirty laundry

I’m guessing everyone who stumbles onto this post is already familiar with Wal-Mart’s move to encourage suppliers to transparently disclose detailed life cycle information on their products.  Basically, Wal-Mart’s big idea is to develop a rating system that scores products based on how environmentally and socially sustainable they are over the course of their life….sort of like a sustainability nutrition label (as the NYT points out).

I’m impressed.  With the announcement of its sustainability index, Wal-Mart is flexing its marketplace power to become a transformational sustainability leader.  The labeling/scoring won’t happen over night, but in a decade or so, I’m guessing the shelves at Wal-Mart will look quite a bit different.  By then, we might not hear as much about the nefarious form of Greenwashing known as the “hidden trade-off” where companies make claims suggesting that their product is ‘green’ based on a narrow set of attributes, without paying attention to other important environmental issues.  With fully transparent, life-cycle focused labeling on products it will be harder for companies to hide piles of dirty laundry behind cleaner marketing claims.

So what are some of the critics saying about the new move?  I had a brief look over at Wal-Mart watch–a blog/website devoted to pushing Wal-Mart to become a better employer, neighbor, and corporate citizen. Strangely, I didn’t see a post on this topic (did I miss it?).  Side related NoteMarc Gunther, one of my favorite sustainability minded bloggers wrote on ClimateBiz: Much as I’m an admirer of Wal-Mart’s ambitious sustainability goals, and its efforts to achieve them, there’s a glaring problem with the company’s “progress” to date…when it comes to climate change-the defining environmental issue of of our era — Wal-Mart is moving in the wrong direction because of the fact that the company is adding more stores and selling more stuff.

So, interestingly, while Wal-Mart is doing so much admirable stuff to change the retail sector, it finds it hard to manage its own carbon footprint.

In any case, it will be fascinating to watch the development of Wal-Mart’s ambitious move.  I wonder how the future labels will look…and how will consumers respond?  How much will “every day” consumers really care?  I hope somewhere along the way there will also be some basic consumer education within the program.  Better education of everyday shoppers will help people fully understand product lifecycle evaluation.

Smart companies will get out in front of this new move by Wal-Mart and help drive the future.  It is really great to see this BIG move toward addressing sustainable consumption–there is a big opportunity here (see the right side of the below graph from the global compact network in Germany).

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Vulcan consumer product strategies

Live Long and Prosper” –Spock

I saw the new Star Trek movie last night and enjoyed watching the new Spock re-introduce us to the famous line & associated 4 finger salue, “Live Long & Prosper“.  While we don’t have Vulcan life spans (apparently they can live to be over two hundred years old) we Earthlings would still like to maximize our time on the planet (and prosper if possible).  Companies, however, can be more Vulcan like with their life spans.  Enduring companies can, theoretically, live forever if they are in stable industries and are agile enough to adapt effectively with the times.  Side Note: If anyone is interested in a list of the 100 oldest companies in the world, click this link.

In order to live long and prosper, many companies see the “Green & Socially conscious product” writing on the wall, and they are adapting their product strategies to the new realities.  I saw a recent post on the Forrester Consumer Product strategies blog (I seem to go there often lately) breaking current environmental and social strategies into four different levels:  ranging from Level 1, which is the most explicit — a flagship “green/social” product — to an implicit Level 4 approach in which consumers likely don’t even know that a product has socially responsible features.

I found the chart offered up a helpful view on the E&SR (Environmentally & Socially Responsible) big picture.  You could even build the model out a bit further within your own industry, inviting debate on how well you are doing vs competition.  As Forrester notes, the chart could also be helpful in evaluating internal commitment by asking “just how central is E&SR really to our consumer product strategy”?  Could I take the project that I am doing now and extend it across all of my product lines?  Of course, as author Sally Cohen points out, it will important for companies to understand who their consumers are and how E&SR fits into the value equation.  And, it will surely get harder to only play on the left side of the chart going forward as consumers get more cynical about companies only touting flagship products & not going “whole hog” with their product strategies.

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