Sustainability brand
Encyclopedia
Sustainability brands are products and services that are brand
ed to signify a special added value in terms of environmental and social benefits to the customer and thus enable the differentiation from competitors. Sustainability brands differentiate them self from Green brands
by their capability of resistance to the accusation of green washing.
Opposed to the term green brands which mainly focuses on environmentally sound business practices, sustainability brands additionally acknowledge the social dimension of providing products and services. This entails, among others, health and safety issues resulting from direct or indirect product use (consumption level) as well as the conditions under which a particular product is produced (production level). The physical protection and well-being
of people at work (i.e. employees as well as workers within the supply chains) are important indicators of sustainability brands and sustainability marketing in general which adheres to the tripple bottom line of ecological (environmental), social (equity), and financial (economic) sustainability.
A brand is able to evoke positive or negative feelings, especially in the context of sensitive social and ecological issues. The more positive the perceptions and feelings are towards a brand, the higher will be the likelihood of identification and loyalty amongst consumers. It is therefore crucial in sustainability marketing to build up strong brands. In doing so, companies face far-reaching decisions in the areas of brand positioning (1), sustainability brand name selection (2), and sustainability brand development (3), in order to create and build sustainability brands that consumers associate with social and environmental added value.
An example of a sustainability brand could be Starbucks
. Behind oil, coffee is the largest commodity in the world. Starbucks proves that a global company serving 50 million people per day can turn a proactive approach to sustainable sourcing and operations into a strategic and profitable part of its brand. The key is to actively listen to, interact with, and act on the expectations of their customers who possess a strong environmental and social conscience.
that is to be actively communicated to the target audience and can be described as an iterative process, consisting of deliberate and proactive actions aimed at the definition of distinct consumer perceptions. Sustainable brand positioning is the brand positioning of Sustainable products and services. Sustainable products and services should offer an improved social and ecological performance during the whole product lifecycle and at the same time they have to satisfy consumer needs and wants. Many of the first generation sustainability brands failed in the market because companies overemphasized the positive socio-ecological product attributes, while they neglected to focus on other product attributes such as performance, functionality or design, too. As a result, many products could not compete against conventional products.
To build up and position strong sustainability brands, there are some guidelines to follow. Marc Stoiber The 5 C's of Sustainability Branding From "Maddock Douglas Innovation Engine: The Innovation Engine Community summed them up in the The five Cs of Sustainability Branding: Consumer Facing, Competitive, Core, Conversational and credible. Perrine Bouhana added to that concept “a sixth C”: Consistency. Martin Belz complemented and revised this concept to “8 C’s” of sustainability branding and describes them as followed:
Core
Co-operative
Credible
Consumer Benefits
Conversational
Consistency
Commitment
Continuity
Sustainability Brands, however, go one step further and incorporate something that conveys the notion of social and/or ecological awareness.
A popular example is “Better Place”, a global provider of electric vehicle networks and services that works in a joint venture with Renault Nissan Alliance Motor Company to promote the use of electric cars. The founder, Shai Agassi, was intrigued by a question posed at the World Economic Forum in 2005 "How do you make the world a better place by 2020?".
Thus the name Better Place. It is not related to the product (electric vehicle) but to much wider social and ecological issues (depletion of natural resources, CO2 emissions…), which the company addresses or rather offers the solution for.
Sustainability brand names can be part of a new product launch, an extension to an existing (conventional) brand or be so new to the market that they create a product category themselves. Each of these approaches has specific strategic implications.
Enter Established Market:
Entering a saturated market such as the one for conventional household detergents with a sustainability brand might prove extremely difficult. However, there are companies that have successfully entered the market and positioned their brand as sustainability leaders. Seventh Generation, for instance, is the US market leader in four product categories (Household, Laundry, Personal and Baby Care) with products that –in the words of the company- “protect human health and the environment.”
Brand Extension / Aligning Existing Brand:
Established brands can leverage their existing brand recognition to extend their name to new products, which are then marketed as socially and ecologically friendly. Tide, a popular detergent brand in the US, expanded its brand to meet the demands of the ecological conscious consumer by launching Tide Cold Water Detergent in 2005. The product requires only cold water and thus saves energy. In 2010, it was given the Green GH seal, which is only awarded after a “cradle to grave” examination of the product.
Creating entirely new Product Categories:
Sustainability brand names can also succeed if they achieve to create a product category for themselves where there is virtually no competition yet. When the car-sharing concept was fairly new, companies such as Mobility CarSharing in Switzerland did neither compete with car companies nor public transportation providers.
To create a sustainability brand it is furthermore important to adopt the right channels for marketing according to Lauterborns five Cs. Advertising in this case can help to create awareness of the brand and thus form the new brand experience.
Furthermore it is obligatory for Sustainability brands to obtain one ore more ecolabel
s, leading to a higher influence on consumer behaviour and the perception of the brand.
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
ed to signify a special added value in terms of environmental and social benefits to the customer and thus enable the differentiation from competitors. Sustainability brands differentiate them self from Green brands
Green brands
Green brands are those brands that consumers associate with environmental conservation and sustainable business practices.Such brands appeal to consumers who are becoming more aware of the need to protect the environment. A green brand can add a unique selling point to a product and can boost...
by their capability of resistance to the accusation of green washing.
Overview
Sustainability branding is the process of creating and maintaining an identity of a specific product, service, or business that reflects special added value in terms of environmental and social benefits. A brand is only perceived as being sustainable if it can credibly convey sustainability benefits which are noticeable by and relevant to the consumer.Opposed to the term green brands which mainly focuses on environmentally sound business practices, sustainability brands additionally acknowledge the social dimension of providing products and services. This entails, among others, health and safety issues resulting from direct or indirect product use (consumption level) as well as the conditions under which a particular product is produced (production level). The physical protection and well-being
Occupational safety and health
Occupational safety and health is a cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all occupational safety and health programs is to foster a safe work environment...
of people at work (i.e. employees as well as workers within the supply chains) are important indicators of sustainability brands and sustainability marketing in general which adheres to the tripple bottom line of ecological (environmental), social (equity), and financial (economic) sustainability.
A brand is able to evoke positive or negative feelings, especially in the context of sensitive social and ecological issues. The more positive the perceptions and feelings are towards a brand, the higher will be the likelihood of identification and loyalty amongst consumers. It is therefore crucial in sustainability marketing to build up strong brands. In doing so, companies face far-reaching decisions in the areas of brand positioning (1), sustainability brand name selection (2), and sustainability brand development (3), in order to create and build sustainability brands that consumers associate with social and environmental added value.
An example of a sustainability brand could be Starbucks
Starbucks
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55 countries, including over 11,000 in the United States, over 1,000 in Canada, over 700 in the United Kingdom, and...
. Behind oil, coffee is the largest commodity in the world. Starbucks proves that a global company serving 50 million people per day can turn a proactive approach to sustainable sourcing and operations into a strategic and profitable part of its brand. The key is to actively listen to, interact with, and act on the expectations of their customers who possess a strong environmental and social conscience.
Sustainability brands vs. sustainable brands
Since the adjective “sustainable” might convey the notion of brands that have long-lasting success, implicating durable competitive advantage without any particular reference to the sustainability agenda, the term “sustainability brand” can prevent ambiguity. Albeit subtle difference, the latter explicitly emphasizes the notion of brands which have built their brand image upon sustainable business practices that consumers value. Sustainability brands are commonly referred to in the field of sustainability marketing.Sustainability brand positioning and the 8 C's
Sustainability Brand Positioning and positioning in general is part of the brand identity and value propositionValue proposition
A value proposition is a promise of value to be delivered and a belief from the customer of value that will be experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services....
that is to be actively communicated to the target audience and can be described as an iterative process, consisting of deliberate and proactive actions aimed at the definition of distinct consumer perceptions. Sustainable brand positioning is the brand positioning of Sustainable products and services. Sustainable products and services should offer an improved social and ecological performance during the whole product lifecycle and at the same time they have to satisfy consumer needs and wants. Many of the first generation sustainability brands failed in the market because companies overemphasized the positive socio-ecological product attributes, while they neglected to focus on other product attributes such as performance, functionality or design, too. As a result, many products could not compete against conventional products.
To build up and position strong sustainability brands, there are some guidelines to follow. Marc Stoiber The 5 C's of Sustainability Branding From "Maddock Douglas Innovation Engine: The Innovation Engine Community summed them up in the The five Cs of Sustainability Branding: Consumer Facing, Competitive, Core, Conversational and credible. Perrine Bouhana added to that concept “a sixth C”: Consistency. Martin Belz complemented and revised this concept to “8 C’s” of sustainability branding and describes them as followed:
Core
- Sustainability should be tied up to the key problems and the core business through assessing the socio-ecological impacts of products along the entire life-cycle of the products and finding out the socio-ecological “hot-spots” of the product-life-cycle.
Co-operative
- The solutions to the main socio-ecological problems associated with products along the entire life cycle require - both in the process of innovating and marketing sustainable products and services - co-operations with suppliers, retailers, consumers, scientists, and other non-market actors (e.g. NGO’s).
Credible
- Fundamentals of credibility are first the solving of key socio-ecological problems associated with companies’ products and second tying sustainability to the core business. Co-operations with trustworthy partners and the use of independent, third-party labels (e.g. labels like Bio or MSC) such as a high level of transparency (e.g. through an online tracking system, which enables consumers to see the world of behind the product) can additionally increase the credibility of sustainability brands.
Consumer Benefits
- Socio-ecological characteristics or attributes of products usually just play an auxiliary role (no core benefits). To broaden the appeal of sustainability brands, the companies should emphasize the inherent consumer benefits of socio-ecological attributes, including efficiency and cost effectiveness, health and safety, symbolism and status. Further they should align socio-ecological attributes with benefits such as functionality, design, and durability to create “motive alliances”.
Conversational
- Sustainability branding is more effective as a two-way conversation, rather than a one-way announcement. Inviting consumers to enter into dialogues about the sustainability process strengthens the brand-consumer relationship.
Consistency
- If sustainability is key to brand positioning, this requires a kind of integrated approach to sustainability communication: it is important to communicate in a consistent way, including e.g. advertising, personal selling or online communication. In addition to that, the sustainability product brand has to be consistent with the overall environmental and social performance of the company.
Commitment
- Sustainability branding not only requires the commitment of the PR department and the sustainability officers but also requires the commitment of top management and marketing decision makers.
Continuity
- Sustainability must reflect the core values of the brand and contribute to delivering the brand promise over the long-term. This means that a brand cannot change its sustainability focus too often, or engage in too many non-related areas.
Sustainability brand name selection
In the course of choosing the right name, Sustainability brands must first –just like brand names in the conventional sense- follow well-established rules. In general, a good brand name should consider three areas: memorability (distinctive short name, evoking emotions…), strategic fit (they should relate to the actual product; ability to expand to other brands) and legal (legal protection under trade mark law etc.)Sustainability Brands, however, go one step further and incorporate something that conveys the notion of social and/or ecological awareness.
A popular example is “Better Place”, a global provider of electric vehicle networks and services that works in a joint venture with Renault Nissan Alliance Motor Company to promote the use of electric cars. The founder, Shai Agassi, was intrigued by a question posed at the World Economic Forum in 2005 "How do you make the world a better place by 2020?".
Thus the name Better Place. It is not related to the product (electric vehicle) but to much wider social and ecological issues (depletion of natural resources, CO2 emissions…), which the company addresses or rather offers the solution for.
Sustainability brand names can be part of a new product launch, an extension to an existing (conventional) brand or be so new to the market that they create a product category themselves. Each of these approaches has specific strategic implications.
Enter Established Market:
Entering a saturated market such as the one for conventional household detergents with a sustainability brand might prove extremely difficult. However, there are companies that have successfully entered the market and positioned their brand as sustainability leaders. Seventh Generation, for instance, is the US market leader in four product categories (Household, Laundry, Personal and Baby Care) with products that –in the words of the company- “protect human health and the environment.”
Brand Extension / Aligning Existing Brand:
Established brands can leverage their existing brand recognition to extend their name to new products, which are then marketed as socially and ecologically friendly. Tide, a popular detergent brand in the US, expanded its brand to meet the demands of the ecological conscious consumer by launching Tide Cold Water Detergent in 2005. The product requires only cold water and thus saves energy. In 2010, it was given the Green GH seal, which is only awarded after a “cradle to grave” examination of the product.
Creating entirely new Product Categories:
Sustainability brand names can also succeed if they achieve to create a product category for themselves where there is virtually no competition yet. When the car-sharing concept was fairly new, companies such as Mobility CarSharing in Switzerland did neither compete with car companies nor public transportation providers.
Sustainability brand development
Sustainability brands are subject to constant change. A sustainability brand that is well established on the market, can be further developed into different directions. According to Belz and Peattie four main options for development are possible:- Line extension occurs when a company adds new products of the same product category under the same sustainability brand name.
- Sustainability brand extension occurs when a company introduces products of a different product category but under the same sustainability brand name.
- Multi-sustainability brands occur when a company manages two or more different sustainability brands but in the same product category.
- New sustainability brands occur when a company creates an entire new brand name when they access a new product category.
To create a sustainability brand it is furthermore important to adopt the right channels for marketing according to Lauterborns five Cs. Advertising in this case can help to create awareness of the brand and thus form the new brand experience.
Furthermore it is obligatory for Sustainability brands to obtain one ore more ecolabel
Ecolabel
Ecolabels and Green Stickers are labelling systems for food and consumer products. Ecolabels are often voluntary, but Green Stickers are mandated by law in North America for major appliances and automobiles. They are a form of sustainability measurement directed at consumers, intended to make it...
s, leading to a higher influence on consumer behaviour and the perception of the brand.
See Also
- Ecological economicsEcological economicsImage:Sustainable development.svg|right|The three pillars of sustainability. Clickable.|275px|thumbpoly 138 194 148 219 164 240 182 257 219 277 263 291 261 311 264 331 272 351 283 366 300 383 316 394 287 408 261 417 224 424 182 426 154 423 119 415 87 403 58 385 40 368 24 347 17 328 13 309 16 286 26...
- Ecologically sustainable developmentEcologically sustainable developmentEcologically sustainable development is the environmental component of sustainable development. It can be achieved partially through the use of the precautionary principle, namely that if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not...
- List of sustainability topics
- Sustainable livingSustainable livingSustainable living is a lifestyle that attempts to reduce an individual's or society's use of the Earth's natural resources and his/her own resources. Practitioners of sustainable living often attempt to reduce their carbon footprint by altering methods of transportation, energy consumption and diet...
- SustainabilitySustainabilitySustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
- Green brandsGreen brandsGreen brands are those brands that consumers associate with environmental conservation and sustainable business practices.Such brands appeal to consumers who are becoming more aware of the need to protect the environment. A green brand can add a unique selling point to a product and can boost...
Further Readings
- Belz F., Peattie K.(2009): Sustainability Marketing: A Global Perspective. John Wiley & Sons.
- Aaker, D.A. and Joachimsthaler, E. (2000), Brand Leadership, The Free Press, New York, NY
- H. Meffert, C. Rauch & H.L. Lepp. 2010. Sustainable Branding — mehr als ein neues Schlagwort?! Marketing Review St. Gallen 27 (5) Pages 28-35
- Patrick Hartmann, Vanessa Apaolaza Ibáñez, F. Javier Forcada Sainz, (2005) "Green branding effects on attitude: functional versus emotional positioning strategies", Marketing Intelligence & Planning, Vol. 23 Iss: 1, pp.9 - 29