Larissa Mallmann F. A. Brandão
MALLMANN CONSULTING

In Brazil, the progressive debate and collective awareness about the extensive environmental and social impacts resulting from individual consumption decisions has impelled organizations to become more responsible and adopt compliance policies and a competitive positioning focused on social and environmental sustainability. However, it should be noted that making a company “better” for society does not necessarily mean positioning it as sustainable. In terms of brand positioning, the fact that organizations take sustainable actions internally does not imply that they need to reinforce these practices externally. The approach to the market depends much more on the competitive environment in which the company operates and the superior value perceived by the target audience on these sustainable attributes.

Therefore, it is a challenge for companies to promote conscious consumption and to adopt effective actions to demonstrate to the public how committed and active the organization is to this sustainable purpose. One of the Branding challenges is to leverage the brand purpose and create sustainable relationships with the market, nourishing the loyalty-profit chain. Brand management should, therefore, provide a match between the role of the brand in the world and what is relevant to people. Thus, the branding strategy needs to be well designed to support the brand legacy and generate effective results for the company in terms of revenue, growth and profitability. In other words, it is necessary build a more sustainable world without causing an imbalance between the value creation for society and the shareholders. The art is in fulfilling the organizational mission and dealing with competition simultaneously. In a context of growing worldwide concern about social and environmental issues, there is not a single “green strategy” that is right for every type of business. For example, “Lean Green” companies understand that environmentally friendly businesses are profitable, but not focused on positioning their actions as “green”. These companies focus on reducing costs and increasing their efficiency through proenvironmental actions, creating a low cost competitive advantage. The objective is essentially to comply with current regulations (compliance) and cultivate long-term solutions, not to invest in expanding market share in “green” market segments. A good example of this line of action is simple waste reduction strategies that generate measurable environmental benefits. A few years ago Walmart launched an initiative with its suppliers to reduce packaging by 5% for five years on the assumption that this could save billions of dollars in costs.

As a chain effect, Walmart suppliers have also accrued reduced material and transportation costs of billions of dollars. 2 Another lean green solution is the replacement of the paper document with the digital one which, besides being a rational solution, preserves the environment and generates significant financial savings. In this line, some companies have also proposed to their customers the option of paperless collection, the “green collection”, which aims to reduce the use of paper and more convenience at the time of payments. Also very common in Brazil, are hotels that adopt more sustainable practices as a way to reduce costs and attract customers. This is the case of replacing electric showers in the accommodations with a more efficient water heating system. Other measures include the installation of flow reducers in the taps and rainwater collection system, as well as recycling, water saving and energy programs.

This is a simple positive action to implement in times of economic crisis, when it is more difficult to invest in what is not essential to the operation of the business. Another very common practice is the option that some hotels give the guest not to wash towels and bedding daily to save on natural resources like water. Companies that adopt a “Defensive Green” strategy, in turn, use marketing and communication actions with sustainable appeal as a responsive measure to a crisis or competitive actions. The strategic objective is to enhance the brand image or minimize damage. This does not mean that these corporate initiatives are not sincere, but tend to be sporadic and punctual, as the competitive differential is not supported by an environmentally responsible positioning.

Most companies can be categorized under the “green defensive” strategy, although, while trying to add to the cause, they do not advertise their green activities far beyond their websites, or, instead of claiming themselves as green companies, occasionally decide to sponsor environmentally friendly events and programs. Defensive Green-ers know that they will not be able to maintain a 100% green reputation, so they do not put so much emphasis on their efforts in this field. A good example is the initiative to reduce the use of plastic bags and encourage customers to recycle. This kind of positive action is not enough for the company to promote itself broadly as a green company.

The company can publicize its initiative to encourage those who are interested in making a change and eventually mobilize customers with occasional campaigns to contribute to that cause. There are also companies that create efficient systems to reclaim their discarded products and use this recycled material to make new ones. In their turn, Shaded Green companies are organizations that choose to promote the primary attributes and tangible benefits of their products / services, leaving environmental benefits as a secondary factor.

As a rule, these companies differentiate themselves through “green” innovations, but rarely do so because they think they can profit more without underscoring these attributes. An example is the efficient use of water resources by laboratory networks. Finally, there are the companies “Green Extreme”, whose sustainable values shape the existence and organizational performance. Environmental issues are fully integrated within the business and processes in the product life cycle. The sustainable differential is the driving force of these companies and, therefore, they usually operate in niche markets, including selling their products/services in special channels. 3 In short, it is necessary to know the consumer and the company’s target segment to understand how the sustainable attribute can be incorporated into marketing.

The effectiveness of sustainable strategies as a competitive differential varies between market segments and even between countries. Therefore, not all organizations attach the same degree of importance to this concern. It is also necessary to consider the fact that most consumers, for various reasons, still privilege the traditional attributes of a product or service such as price, quality and performance over the attributes of an environmentally or socially correct origin. However, it is a fact that today’s society needs a change in production and consumption paradigms. After all, the models employed since the Industrial Revolution have affected environmental conditions, the quality of natural resources, and the wellbeing of the people of various nations.

The growth of conscious consumption is an unprecedented opportunity for organizations. The moment is favorable for collaborative ethical conduct and adoption of eco-efficiency techniques and social responsibility practices as management tools. The essence of strategy is the ability to anticipate and adapt to reality. And the future is bright for the Green Marketing.

MALLMANN CONSULTING is a consulting firm in Brazil with expertise in planning and implementing projects focused on Communication and Organizational Culture, Marketing and Branding. Our specialty is the management of intangible assets, which are key assets for sustainability and business longevity, as well as strategic for company value.