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An eco-friendly cleaning product is … One which is absent of phosphates, petroleums and chlorine, or other harmful products and usually has recyclable packaging. russell davies:
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An eco-friendly cleaning product is… One which is absent of phosphates, petroleums and chlorine, or other harmful products and usually has recyclable packaging. russell davies: You’ve clearly worked hard to find some useful facts and information, so well done with that. And you raise a really interesting question - will people believe that green product is effective product and what do they care about most? And there’s all sorts of interesting charts showing what’s happening in the market, with consumers etc. However, I kept getting lost. The ‘story’ isn’t very clear. And the jargon is almost impenetrable. I got the sense that some of it is cut and pasted from other places, which isn’t a problem if you think about and understand what you’re cutting and pasting, and if you can tell a clear story with it. But it doesn’t feel like you know exactly what you’re saying. I apologise if that’s not the case, but that’s how it feels. You need to gather your facts and tell a story that everyone can follow. Yet do consumers believe green is clean? How can a green-cleaning product best position itself within this growing market to meet consumer needs?
State of the markets Consumer • As many as 15% of the population are persuaded to buy one product rather than another because of the way the manufacturer treats its workers, communities or the environment ** ‘Green’ consumers tend to be more preferable to hand-cleaning then dishwashers.* ‘Green’ market Dishwashing detergents market • The potential for ethical products and services in the UK could be as much as 30% of consumer markets.** • 10.2% increase in dishwasher ownership in the UK between 2001-2005* means we are looking at a relatively smaller market of people who clean dishes manually **Co-operative bank research conducted by MORI, 2000 *Mintel 2006 Dishwashing Detergents
Competitive Activity • Competition to focus on • Hand dishwashing detergents • Eco-friendly company as well as supermarket ranges • Mainstream laundry products who use environmentally friendly propositions i.e. Ariel wash at 30ºC Campaign
Competitiveeco-friendly brands • Ecover – Largest UK supplier is a private company based in Belgium says sales are growing at the rate of 20 % per year in the UK, its biggest market, reaching £35m last year. • Tesco- launched its own ‘naturally…’ range Sept 2006 • Fresh and Green range – from Anthony Warrell Thompson (celebrity chef) endorsed by WWF – A.C. Nielsen report, “The Biggest Brands Report” has revealed that Yeo Valley organic foods is the fourth fastest growing brand in the UK. If eco-friendly products shared same attitudinal moments of identity with as organic products to ‘green’ consumers and looking to the success of Ecover, the eco-friendly cleaning product market seems a particularly lucrative one
Position of different products in ethical market = Eco-friendly cleaning products
The consumer Each group may cross boundaries of neat socio-demographic profiles due to shared attitudinal basis Source: MORI report 2001 based on face-to-face interviews with almost 2,000 individuals in April and May 2000.
Global Watchdogs – 5% • Most affluent group of 35-55, professionals • heavy bias in particular to the home counties north and east of London - 68% rated ‘environmental’ factors as very important in purchase decisions Conscientious Consumers – 18% • Professionals of a mixture of ages from 25-40 who are more concerned with brand names but have high awareness of ‘ethical’ products • 49%rated ‘environmental’ factors as very important in purchase decisions Consumers of eco-friendly products are buying in reflection of their own status and conscience. Having been exposed to relevant media, priming them on environmental issues, they connect to niche and intelligent brand values of this type of product. These two attitudinal groups should be focused on as B2C target consumer base.
Is green clean? This is a main concern for non-users who doubt effectiveness in absence of chemicals Marketing of product must harness strengths of personal health implications as well as environmental friendliness. Looking at B2B for example eco-friendly cleaning products are popular in nurseries and crèches where infants health is of top priority and chemical exposure must be limited. Similarly a B2B proposition may be made to mothers who are chief household buyers and want products to make their home more safe for their young children
Considerations: • +333.3% change increase in UK retail value sales of hand dishwashing detergents for ‘pre-spray’ style cleaners i.e. Fairy Power spray means this could be an interesting product area to focus on. • A fragrance proposition will help persuade non-users of eco-friendly products who believe ‘natural’ cleaning agents will make their house smell like a ‘chippy’, also creating a USP instead of just being another ‘ me too’ product.
Marketing strategies must address… High Frequency of Purchase Small universe OBJECTIVE: Increase penetration Wider distribution Promotion Member to member recommendation.