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This article explores the concepts of Environment, Health, and Safety (EHS) in the context of sustainable marketing for the Indian market. It discusses consumer perceptions, the importance of understanding the Indian consumer, and the approach to sustainability. The article also emphasizes the need for honesty and self-regulation in sustainability initiatives.
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Sustainable MarketingUnraveling the mystery of EHS for the Indian market Satish Kulkarni General Manager, Marketing Asian Paints Limited
Three big ideas. 1. UnderstandingEHS 2. Understandingthe Indianconsumer 3. Approachto sustainability
Consumer research tells us that • Consumers believe that anything for the “Environment” is for others, is for society at large, is for the world, and impacts me tomorrow • Consumers believe that “Health and Safety” is for me, for my family and impacts me today HS = For me E = For the world 1. UnderstandingEHS
Environment Friendliness is • New • Little understood • Difficult to articulate • An appealing idea nonetheless • Less important than performance Consumers are not willing to compromise on perceptible quality, for an uncertain, unknown quantity of eco-friendliness. 1. UnderstandingEHS
Health and Safety is • Important for my family and for me • Non negotiable • Implicit • Assumed • Not something I would pay a premium for Brand trust leads people to the conclusion that large companies have done everything they can to ensure safety of their products. 1. UnderstandingEHS
Indian consumers and sustainability Several reports from the last few years (from everyone from the National Geographic to independent agencies) confirm that Indians score very high on “eco friendliness”. Surprised? Most reports conclude, of course, that our eco friendliness stems from our value maximizing behaviour. 2. Understandingthe Indianconsumer
We are value maximizers As consumers, we seek to derive the maximum value from every rupee we spend. Therefore, marketers will need to pitch sustainable products and initiatives that offer • an economic value OR • a functional value Only then, the ‘sustainable’ products will find critical mass to grow & actually make an impact on environment 2. Understandingthe Indianconsumer
Marketers must find the right proposition Find meaningful terms that you can couch your product/service in, that offer the right economic value or the right functional value Examples: CFL bulbs, that sell not on account of environment friendliness (which they offer) but on account of durability and a reduction in cost over the lifetime of use (which they also offer) When the right EV (Electric Vehicles) come to India, the right pitch will be to find an economic driver. A “save the world” campaign may not deliver results. 2. Understandingthe Indianconsumer
Honesty, honesty, honesty. We, as trusted brands and as industry leaders, have a responsibility. To be honest, true and real about initiatives around sustainability. Gimmicks and tricks around sustainability from any one marketer trivialize the story for every other marketer. Frivolousness in this regard can hurt everyone else as customers lose conviction in ‘sustainability agenda’. More importantly it can impact the trust of your own brand. 3. Approachto sustainability
Self regulated Consistent and complete Stringent Relevant for our consumer Not just for profitability Five anchors.
Self regulated Inside out, not outside in. • We will seek to drive sustainability efforts not because we are forced to, but because we wish to. • The Indian regulatory framework will enforce guidelines in due course, but we wish to be ahead of the curve in this regard.
Consistent and complete EHS across layers, across products. • Solutions that we are working towards encompass our entire range of products. We believe that offering solutions in part help neither the consumer nor the environment. Topcoats of paint Solutionsacross the range Solutionsthrough the range Undercoatsand ancillaries
Stringent Standard that is meaningful. • We are driving ourselves to achieve the GreenSeal standard (GS-11, in particular) to ensure that we offer world class products that stand up to the most stringent norms of safety & health of users / applicators and workers in our factories and are environment friendly • There is no value to be derived from weaker standards • Standard should be comprehensive – specifically in case of paints, VOC is not enough. Should cover HAP, CMR, APEO, Heavy Metal & Odour • We value brand trust more than immediate short term returns
Relevant for our consumer Find the right consumer proposition. • As we’ve discussed earlier, sustainability is best driven via a consumer proposition that speaks directly to the consumer, and pitches either an economic value or a functional value • What proportion of your sale is by sustainable products? • We have conducted research that breaks out the term “water based” into a set of values that are meaningful for our consumers.
Not just for profitability The cost of sustainability • Should we pass on the costs incurred in driving sustainability in our product range on to the consumer? • The jury’s out on this one. We may or may not choose to do this, based on the quantum of cost and what the market can take • This is clear though: we are not in this for pure play profitability reasons. There’s a larger responsibility that all of us as responsible and caring brands must live up to.
