Horticulture is known as the green industry -- at least to growers, universities and allied companies. Portions of the industry market itself with that moniker. But there’s a lot of potential for better and more comprehensive ways to present the industry as sustainable to consumers.
Green marketing is a way to differentiate a company from its competitors in the consumer market.
Research shows that in a competitive market, the perception a company is socially responsible can be a major differentiation point for consumers, but it must be a sincere, deeply held element of the corporation’s culture, said Barbara Kahn, marketing professor at the University of Pennsylvania’s Wharton School. The Wharton School took an in-depth look at green marketing.
“You need to have a history of this kind of social responsibility. You can’t fake it. It’s hard to do, but that’s what makes it worthwhile. If it’s easy to copy, then it’s no longer a competitive advantage.”
Consider the number of growers using best management practices -- it’s a good marketing tool.
However, there is potential danger in building a core strategy around the environment, because of the possibility that one action will lead to unintended consequences that may harm the environment, said Eric Orts, Wharton legal studies professor.
“Companies that promote their environmental credentials open themselves up to a public backlash if an element of their strategy is later discovered to be less than pristine,” Orts said. “For example, Levi Strauss has been reluctant to promote its use of organic cottons in some of its apparel for fear that it might draw attention to the way the rest of its cotton is produced.”
To hype or not to hype
Growers are in a conundrum in terms of strategies to market sustainability, said Charlie Hall, an agriculture economist and the Ellison Chair in International Floriculture at
“This whole issue of sustainability over the next 18 months is going to be transformational,” Hall said. “There continues to be a metamorphosis going on in this industry to become sustainable.”
Plants alone provide a green marketing opportunity.
“Several recent developments in plant genetics and breeding have allowed for the creation and nursery production of superior, environmentally resilient varieties,” said J. Guy, president of Carolina Nurseries in Moncks Corner, S.C. “At retail, the support of marketing and branding educates consumers about the quality and reliability of a plant’s genetics and, thus, the garden sustainability of the plant.”
Green marketing also extends to production. Growers can point to using alternative heating, biofuel in trucks, different types of pots or by saving and recycling water and plastic.
“We’re the original green industry. We provide a product that provides a net gain in carbon sequestering. There’s research going on now to better quantify that fact,” Hall said.
But all of those green points must mean something to consumers. There are environmentally conscious consumers out there. And they’re saying they’ll pay more for environmentally friendly products.
“When you can successfully differentiate your product, demand is inelastic. You can raise your price and profits go up,” Hall said.
While touting the environmental benefits of the industry, don’t oversell it, said Dave Bradford, owner of Bradford Horticulture, a consulting firm in Chelsea, Ala.
“If we understate it a bit, the consumer will believe it more,” Bradford said. “Make your point short and sweet.”
Honesty is the best policy
Because green marketing is so hot, there are many cases of deceptive practices. Some producers make false claims about environmentally friendly characteristics, also known as greenwashing. This practice will turn the consumer against the green marketing movement.
Like Wharton’s Kahn said, “You can’t fake it.”
TerraChoice Environmental Marketing in Philadelphia fashioned the “six sins of greenwashing.” Check them out at www.terrachoice.com.
The Federal Trade Commission is helping companies make sure their green claims don’t run afoul of the law.
For more: University of Pennsylvania, Wharton School, (215) 898-5000; www.wharton.upenn.edu. Charlie Hall,
Firm develops green plant tags
Horticultural Identification Products in
The BioTag is made of biodegradable plastic. It’s made using a state-of-the-art polymer technology that relies on products such as corn and soybeans instead of fossil fuel-based resins. The degradation process takes about one year.
The EcoTag is a degradable alternative to the traditional plastic tag. It’s manufactured using wind power. These rigid tags retain their integrity until buried in compost or disposed of in a landfill. Buried tags disintegrate in one to five years.
“These environmentally conscious horticultural tags contribute to the brand image of a horticulture company, not only enhancing the look of plant products, but also conveying a corporate commitment to environmental awareness and the conservation of natural resources,” said Bob Lovejoy, president of HIP.
For more: (336) 472-0674; www.hiplabels.com.
- Kelli Rodda
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Values-driven consumers change the rules of marketing
Nearly nine in 10 Americans say the words “conscious consumer” describe them well and are more likely to buy from companies that manufacture energy-efficient products (90 percent), promote health and safety benefits (88 percent), support fair labor and trade practices (87 percent), and commit to environmentally friendly practices (87 percent), if products are of equal quality and price.
“In a world of green clutter, conscious consumers expect companies to do more than make eco-friendly claims,” said Raphael Bemporad, founding partner of BBMG. “They demand transparency and accountability across every level of business practice. Avoiding the green trap means authentically backing your words with socially responsible actions.”
The survey also revealed:
* Americans said these terms described them “well”: Conscious consumers (88 percent), socially responsible (88 percent) and environmentally friendly (86 percent.) By contrast, fewer respondents said the term green described them well (65 percent,) which is viewed as more exclusive.
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* While price (58 percent, very important) and quality (66 percent, very important) are paramount, convenience (34 percent, very important) has been edged out by more socially relevant attributes: Where a product is made (44 percent, very important), how energy efficient it is (41 percent, very important) and its health benefits (36 percent, very important) are all integral to consumers’ purchasing decisions.
For more: BBMG, (212) 473-4902; www.bbmg.com.
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Beware of broad, sweeping claims when marketing sustainability
Marketing sustainability is a double-edged sword. On the one hand, “green” is a rising trend among consumers but on the other hand you can get burned making exaggerated or misleading claims. So green marketing has to be done carefully and with great humility or you will be called to task. When you market in the green space, you open yourself up to challenge on the credibility of your statements. Today there are government and consumer advocacy groups who look for what has become known as “greenwashing.” This is the practice of hyping some green attribute and making more of it than is warranted.
For example, go to http://corpwatch.org and do a search on greenwash. You’ll find the Greenwash Awards, which are handed out to corporations that are touting their greenness more than some feel is appropriate.
Fundamentally, you must meet the Federal Trade Commission (FTC) Marketing Claims guidelines. Go to http://ftc.gov/bcp/menus/business/energy.shtm for more information.
The FTC’s Guides for the Use of Environmental Marketing Claims explain how the FTC Act is enforced when it comes to environmental claims. The guides provide a framework for the use of environmental advertising and labeling claims. The guides recommend that marketers qualify environmental claims that are broad or vague -- or avoid them altogether.
For example, broad claims like “environmentally safe” or “environmentally friendly” should be qualified or avoided because they can convey a wide range of meanings to consumers that may be difficult to substantiate.
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The guides include examples of deceptive statements. A lawn care product is advertised as “essentially nontoxic” and “practically nontoxic.” Consumers would likely interpret these claims in the context of such a product as applying not only to human health effects but also to the product’s environmental effects. Since the claims would likely convey to consumers that the product does not pose any risk to humans or the environment, if the pesticide in fact poses a significant risk to humans or environment, the claims would be deceptive.
- Ken Alston
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Brown power/energy: Electricity generated from the combustion of nonrenewable fossil fuels (coal, oil, or natural gas).
Cause-related marketing: A business strategy whereby a company aligns its mission and goals to create a specific and tailored partnership with a nonprofit organization or cause.
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Clean production: A concept developed under the Kyoto Protocol in which manufacturing processes reduce environmental impact and decrease ecological problems by minimizing energy and raw materials use, and making sure emissions and waste are as minimal and as non-toxic to environmental and human health as possible.
Global Reporting Initiative (GRI): A reporting standard generally accepted to be the leading international standard for reporting social, environmental and economic performance.
Source: BrownFlynn
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