Capturing the Eco-Friendly Niche in Colombia

1. DOES BEING ECOFRIENDLY MAKES ANY POINT?

2. russell davies: That those little bits of actual data make all the difference. Concern for environmental issues is going down in Colombia? That ought to make your client pay attention. But look, here’s a niche we can talk to, that should keep their attention. TO FIND IT OUT WE NEED TO ANALYZE ALL THE POINTS OF VIEW RELATED TO ENVIRONMENT IN THE COUNTRY • The big cities are having great problems to solve the problem of garbage and climate change. An ecological catastrophe is upon us. • The government and the big corporations are very interested in the subject, and they are working in new solutions that might help solve the situation. The problem is that most of the consumers aren’t as involved in the matter. • One of the reasons for this to happen is that the green trends has a perception of being very expensive, and in a country like Colombia, where 71% of the population has a very low income, the price of the products matters too much. • A problem in the specific category is that consumers believe that cleaning/laundry products are more efficient thanks to all the chemicals they have. This is something we need to work on very hard. • According to the TGI, over the last year the concern for environmental issues in the general public suffered an incredible decrease of almost 20%. • But there is still hope, a small niche called ”The Experimenters”, young prosumers with social conscience. This group represents the 13% of the population, but their affinity to those issues is over 75%, almost 40% more than other niches. (TGI)

3. russell davies: Good. A portrait of the audience. Lovely. OK, THIS IS A STARTING POINT. BUT WHO ARE THOSE PEOPLE? HOW THEY CONSUME? Core values of the Experimenters They go to the supermarket (in where 41% of the commerceof the country is made), but they prefer specialized ones like Carulla or Pomona. They are working people, the labour of doing the cleaningand the laundry is left to the weekend mornings. They are embracing new worthy causes, a new lifestylemore according to their values, something that theyfelt so passionate about that is nearly a new spiritualityfor them. They will buy products more compatible with their believes, the price doesn’t matter that much while the product isof good quality. • Inside the info culture • Open minded • Continuous learning • Entrepreneurship • Career acknowledge • Good relationships at work • Sociably and faithful • Sensibility to other subjects • Spirituality and social conscience • Open attitudes toward consumerism • Prefer items of good quality • They invest in their look • They support the national industry

4. BUT TO WHERE IS ACTUALLY THE MARKET POINTING? The categories Dish Washing - Household Cleaners - Laundry & Fabric Care The big players Leader brands

5. UNDERSTANDING HOW THOSE BRANDS ARE FACING THE GAME, WILL GIVE US A CHANCE TO WIN A MATCH POINT. russell davies: Good stuff. Useful. The most dynamic categories Category ideas: Soap Detergents Size: US$ 120 millions Top Brands: Fab (27%) Ariel (23%) Cloth conditioner Softness Whitening Product True White Soap Detergent Color Protection Dish Washing Out grease Floor cleaning Good Smell Whitening Products Size: US$ 50 millions Top Brands: Blancox (28%) Clorox (21%) The things about the category that matters most to the average consumers in Colombia are: Price Smell According to IBOPE, in 2006 the overall ad spending in the category was of US$ 32 millions (41% more than 2005).

6. russell davies: Very good. Here’s some specific and practical advice that also indicates you’ve done your homework. You’ve made an effort. You get lots of points for that. IT’S A HARD COMPETENCE, BUT STILL, THERE ARE MANY INTERESTING POINTS THAT COULD GIVE US AN ADVANTAGE. There are few preceding cases of eco-friendly products in this category. One case is the soap Puro (Unilever), who always has claimed to be friendly with nature. In the other hand, there are the imported products, like Downy and Tide, which has clear politics about the composition of their packages which are made 25% with recycled materials and the composition of their formula, with less phosphates. Other local detergents claim to have biodegradable ingredients, but none of them have this… Colombian Ecolabel NTC-5131 for cleaning/laundry products, which certifies that all of the life cycle of the product is eco-friendly. Colombian Entrepreneurial Counsel for the Sustainable Development. A committee that is in charge of propelling the S.D. within the industry. Any of the manufacturers of cleaning/laundry products is member of this Counsel. Green Market Plaza in Bogotá, the first retailer dedicated exclusively to eco-friendly products. The government is leading the construction of more in other cities. There’s also a trade fair called BIOEXPO, which could represents excellent business opportunities.

7. SO WHAT HAS TO BE DONE? WE NEED TO MAKE A POINT AND SUTURATE THE WOUND THAT HAS BEEN MADE TO THE ENVIRONMENT Since the industrial age many companies have contributed in one way or another to produce the problem we are facing now. If we want to be heard and acknowledged as a responsible brand and a true option for the environmentalists we need to do a manifesto. A manifesto that not only express the philosophy of the brand, but that also recognise the mistakes that we have made and those made by others like us. It’s time to start healing the environment and this represents huge opportunities of produce great amounts of buzz and sales.

8. Cleaning Dispenser Machines people use to buy just to buy the exact amountthey need. This isan huge savingin packaging. Reusable Packages Instructions behind thelabels of how transformpackage into a flowerpot February 1st Day without car A chance to clean thecities and produce an even bigger effect in the environment russell davies: Again, I like that you’ve suggested some specific things. Not just vague brand thoughts. These are smart ideas which demonstrate you’ve thought about the problem. Returnable Packages Soda companies use thissystem to reuse their bottlesThis is a form of reducethe waste produced. Branded Spaces Laundry services in theneighbourhoods, this is a economy for people andless waste of waterand energy GreenPoints CRM program hand-to-handwith retail stores, which will benefit to the peoplebuying green products CorporateClients Enterprises are much moreaware than consumers ofthe problem. Our productscould help them too. DOING THIS WE COULD PRODUCE AN INFLECTION POINT, A CHANGE THAT WILL BRING THE BRAND TO THE MAJOR LEAGUES.

9. russell davies: This was good. It had real facts/data in it. It had interesting ideas. It was punchy. You’ve clearly made a good effort and it showed. GREEN IS THE COLOR OF HOPE… WHILE THERE IS HOPE THERE IS A POINT