Download - Growing Green (Group 7)
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Growing
GreenThree smartpaths to
developingsustainableproducts-by Gregory Unruhand RichardEttensonPresented by-
Group 7
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Cloroxs Brita water filter
Companies increasing their focus on
producing environmentally friendly products.
Sustainability as a revenue-driver and as a
competitive advantage.
Three strategies that can be
used by companies to align
their green goals with theircapabilities.
1. Accentuate
2. Acquire
3. Architect
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1. Accentuate Involves highlighting the green attributes
of the current products.
E.g. Church & Dwights Arm & Hammerbaking soda.
Repositioning of Brita water filter againstbottled water.
Educate consumers and communicate
about Britas green characteristics.
FilterForGood website.
No greenwashing.
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Companies lack a green heritage in theirportfolio of products.
BPs Beyond Petroleum rebrandingcampaign.
Strategy must align with customersperceptions.
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Brita filters were not positioned as greenand produced by a green company.
Collaboration with Preserve and WholeFoods Market.
Enhanced credibility
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2. Acquire If an organization has no brand for
accentuation then it can opt foracquiring someone elses green brand.
E.g.
The Body Shop by LOreal
Ben and Jerrys by Unilever (Hostile Buy-out)
Toms of Maine by Colgate-Palmolive
Problem of Culture Clash and Strategic Fit.[Stonyfield Farm by Groupe Danone]
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Challenges of Green
Acquisitions Scrutiny by the green community
New parents green credentials
Accusations of deliberately destroying a
green competitor.
o Coca-Colas acquisition of Planet Java and
Mad River Traders
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Appeal of Successful Green
Brands Loyal customer base
Specialized knowledge on eco-friendlyinnovation and manufacturing
o Cloroxs acquisition of Burts Bees
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3. Architect
Does the company have a history of/ anaffinity towards innovation?
Could be slower than previous paths
But helps in building valuable
competencies!
The Toyota way
Green Works Cleaning ProductsClorox
R & D needs its independence
Result - Established the benchmark definition andbest practices for a natural cleaning productand proceeded to design a line of offerings thatwould deliver the efficacy customers demand
Accumulation of a range of new competencies
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Making green growth happen The strategy must be aligned with the
companys objectives, goals & policies
Before going green managers must ask
& evaluate
1. If the plan is feasible ?
2. Is it desirable ?
3. How would it be implemented?
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Feasibility Taking stock of the assets through a duo
dimensional approach
1. Greenable attributes of existing products and
brands, and organizational green product &
brand development capabilities
Requires a careful review of opportunities to promote
brands green benefits
2. Appraising the companys green resources andcapabilities through
Reviewing process & priorities for innovation
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Desirability Assessing the strategic fit of each option with the
company's objectives & resources they can bring to
bear on the green initiatives
Decide which strategy fits best & where - Acquiring v/s Accentuation v/s Architecting
Must consider
1. Speed to market & investments,
2. Reputation &
3. Competencies that the initiative will require
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Implementation Acting on all factors that affect successful execution
Aligning green strategy with their existing product
portfolio
Devoting resources and capabilities needed to
achieve their strategic goals
Strategy must satisfy customer's expectation & should
take advantage of competitors green weakness
Should address the red flag issues that couldundermine implementation
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