Firms invest in Carbon Counting, But What Marketing Gain is Achieved?

PEPSICO - Firms invest in Carbon Counting, But What Marketing Gain is Achieved?

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Corporations like Ge have spent the price of a small country on programs like Ecomagination, but are the investments generating brand loyalty and top of mind awareness commensurate with their green efforts?

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Three spicy reports were issued recently:

The 2009 ImagePower Green Brands study, an international study conducted by Wpp agencies (Nasdaq: Wppgy) Cohn & Wolfe, Landor associates and Penn, Schoen & Berland associates (Psb) as well as independent strategy consulting firm Esty Environmental Partners.

The Green Revolution from Grail Research, a study intended to help fellowships heighten their transportation strategies and sway shopping behaviors of green consumers by analyzing association of brands with green.

Quarterly update of the Epa's National Top 50 Green Power Purchasers.

Per Grail Research, consumers think of green products as those that minimize the impact on the environment with the top 5 associations (position varies by gender and age):
Recyclable, reusable materials/packaging. Energy efficient/uses renewable sources of energy. Made with natural ingredients/organic. Contributes less to greenhouse gas emissions. Non-toxic in nature.

With vigor efficiency and use of renewable vigor as a high association with a green brand, I compared the Top 10 for the three reports and was surprised by the results:

Wpp: 10 Greenest Brands -

Clorox Green Works
Burt's Bees
Tom's of Maine
Sc Johnson
Toyota
P&G
Wal-Mart
Ikea
Disney
Dove

Grail Research: Top of Mind Awareness -

Seventh Generation
Ge
Toyota
Whole Foods
Trader Joe's
Clorox
Apple
Sc Johnson
Johnson & Johnson
P&G

Epa: Top 10 Green Power Purchasers (7/7/09) -

Intel Corp.
PepsiCo
Whole Foods
Kohl's Dept. Stores
Dell Inc.
City of Houston, Tx
U.S. Air Force Force
Pepsi Bottling Group
Cisco Systems
Commonwealth of Penn.

Evaluating the Top 10 green power purchasers, only Whole Foods ranked in the first two reports on brands. Noting that Johnson & Johnson was 11th for the Epa's green power purchasers and Wal-Mart ranked in the Epa's top 10 for onsite generation, I was still surprised that respected, well-known brands like Intel, PepsiCo, Dell and Cisco were not mentioned.

In fact, besides Apple and Ge, a technology firm or an It manufactures firm were not on the lists. Technology firms like Ibm and Hp are investing heavily, but according to these surveys conducted in May-July 2009, their messages do not effect in top 10 brand awareness.

A few conclusions may be drawn:

To answer to consumer's perceptions of green just for vigor efficiency and levels of greenhouse gas emissions by enterprise-wide corporations is a monumental task that involves the furnish chain. This determination is full, and time-consuming and as a growing estimate of major corporations are discovering, they expect to see hereafter brand loyalty for their efforts.

Major firms will not risk a poor brand perception if the value proposition is not "trusted". To be green, a corporation needs to be able to measure it and manage it, and then shop green as a core value of the brand.

It's still early. With price a major inhibitor to purchasing green (internationally), green as a component of brand loyalty remains early adopter/pioneer for a important estimate of domestic industries.

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