INDUSTRY BUZZ: Eco-Conscious Meets Cost-Conscious at P&G: RetailWire

Over at RetailWire, Tom Ryan explains Procter & Gamble's Future Friendly initiative. The initiative aims to bridge the gap for consumers who think that buying eco-friendly or green products also means high prices. Often consumers associate buying green only with buying at a premium. P&G will be promoting some of the products the Company currently sells as eco-oriented, while maintaining their affordable prices. Do your customers feel this way about buying green? Have you started any initiatives to allay these concerns?

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Eco-Conscious Meets Cost-Conscious at P&G

By Tom Ryan

While Procter & Gamble's Future Friendly initiative aims to clear up the confusion around how to be eco-friendly, it is also designed to remove the perception of high prices that keeps consumers from buying green products.

Unlike other CPG brands that have come out with environmentally-friendly products under umbrella brands at premium prices, P&G will be promoting some of the products it already sells -- among them, Tide Coldwater, Pur water filters, Cascade dishwasher detergent and Gain detergent -- as ecologically oriented, while maintaining prices. Combining familiar, trusted brands along with the value message, P&G is hoping to lead mainstream consumers to conservation while creating excitement around staple categories for retailers. The new green consumer education platform - including television commercials, digital ads, social media, package labeling and displays - is slated for a March 29 national rollout by 115 grocery/club retailers for a total of about 15,000 stores.

To qualify for the Future Friendly designation, products must provide "measureable and meaningful" savings in one of three areas: energy, waste and water. About one dozen products/brand franchises currently meet the criteria.

At a news conference in New York on Tuesday, P&G execs identified three types of green customers:

* Dark Green, representing 17 percent of consumers, will pay more and sacrifice performance for eco-friendly product;
* Basic Living, also representing 17 percent, have no interest in green products, even being offended by the sustainability message;
* Sustainable Mainstream, making up 68 percent, are interested in helping the environment but aren't willing to sacrifice price or performance.

"They want to do the green thing but they don't want a product that doesn't meet their needs or costs more," said Glenn William, P&G's external relations manager.

That finding is backed by a survey conducted January 29 - January 31 by Ipsos Public Affairs. When asked what two factors were most important when deciding which product to buy, price came in first at 41 percent; followed by performance, 38 percent. The impact on the environment came in at 22 percent.

Saving money was also the most frequently mentioned reason why consumers would take measures to reduce waste, save energy and save water in their home, at 64 percent. (Coming in second was Preserving Resources for Future Generations, 56 percent.)

On the positive side, 74 percent reported they would switch to another brand if it helped them conserve resources without having to pay more and 69 percent reported they would recommend the product to others under those conditions.

But Future Friendly also addresses the confusion or skepticism over eco-products. Asked why they don't by green products, 'Not Having Enough Information' was the top answer, at 37 percent, even higher than 'Costs too much', 29 percent. 'Not Having Enough Interest' came in at 36 percent, and 'Too Complicated,' 21 percent.

As such, rather than a guilt message about not doing enough for the environment, Future Friendly focuses on making it easy for consumers to find and use products that help save energy and water, and reduce waste. In-store signage reads "Simple Choices. Meaningful Results." Under the Reduce Waste heading, a shelf-strip for Pampers Cruisers reads, "Our lightest diaper ever, with 14% Less Material." P&G execs also noted that consumers link saving water and energy to saving money, but some signage talks directly to saving money. A Save Energy heading reads, "Save up to $18 a year by switching to cold with Tide Coldwater HE."

For retailers, the use of existing brands such as Tide and Duracell that consumers "already know and trust" offsets the risks of encouraging consumers to switch to new products, according to Duncan Love, P&G's associate director of strategy and marketing. Upgrading the eco-content of existing brands also makes it "simple to accomplish" for stores when coming up with new brands runs counter to SKU rationalization trends. Various options are also available to tie eco-messages to local communities.

But Mr. Love said bringing innovation to categories ultimately drives trips and basket rings. After price and performance, P&G's research shows eco-impact now rates as an important purchase driver. While downturns have crushed conservation movements in the past, Mr. Williams said, "The recession didn't kill the green movement."

SOURCE: RetailWire