Using 'green' features to win customers' heart

Syafruddin Chan, Marketing consultant, Jakarta

Today's industries are not merely concerned with selling, but also with the environmental impact of their products. Manufacturers of home appliances are no exception, in fact to win consumer confidence they are implementing a number of measures, which are their effort toward a greener world.

Led by various non-profit organizations, such as Green Peace, the number of green consumers is sharply growing by the year. In view of this increasing trend, managers are revamping their production and marketing plans. For marketers, the already tough battle to keep prices down -- while improving quality, service and other benefits -- is compounded by the new demand for environmentally friendly goods .

Whether or not they implement this knowledge in their daily lives, most people are at least aware that the planet's natural resources are steadily diminishing. Pollution and destruction continue while the population grows. The Industrial Revolution in the United Kingdom in the 18th century was a turning point for a number of things. Arguably the most unpleasant change was the increase in waste and its effect on the ecosystem.

For green consumers, gimmicks and technological attractions are all very well, but a product that promises to have a neutral, or even positive effect on the environment, will always be number one. This critical and selective attitude has been presented to the public by celebrities and others, thus influencing many previously unconcerned consumers to "buy green".

Air conditioners and refrigerators can be taken as an example. At present a number of brands on the market use freon, which contains chlorine. While not dangerous in itself, when these appliances reach the end of their life-cycle they must be disposed of correctly. If not, chlorine goes up into the ozone layer where it causes a photo-reaction with the ozone and thereby destroys it. Even a small amount of chlorine can destroy a large amount of ozone. If the ozone layer is damaged, the direct radiation of the ultraviolet rays of the sun are more likely to cause skin cancer or cataracts. An increase in ultraviolet rays may also destroy plant genes and ultimately lead to the destruction of the ecosystem and crop failure.

Recent research conducted by Cone Incorporated in the United States revealed that not only is the number of green consumers increasing but the depth of their concern as well. It concluded that the environment is one of the top three concerns of consumers. Close to 87 percent of respondents said that they were deeply worried about the environment. Several other surveys from a number of highly developed countries indicated similar results. Slowly Indonesian consumers are following the same trend.

It is crucial for marketers to understand the demographics of their market, which today, includes green consumers. Principally, this type of customer, although highly demanding, does not expect 100 percent perfection from manufacturers. It seems that they are appreciative of the commitment of manufacturers in developing a green stance. In the eyes of such consumers, those companies that make sweeping "green" claims (without commitment) fall far below those that take real steps toward the preservation of the environment.

Advertisements with green messages are very effective, particularly in targeting well-educated youths and those below the age of 40. The market for sophisticated home appliances is largely made up of this segment, as well as educated women, who are the main purchasers. For marketers, communicating environmentally friendly themes is not too difficult, given that they are talking to a highly educated and high-income segment.

Most major companies are not simply complying to regulations on the preservation of nature. Most realize that in the long term, really listening to consumers' demands is to their benefit. Every stage of production, including waste management and recycling is strictly managed, otherwise their products will sooner or later be disregarded by consumers. One such major company is LG of South Korea, which has built a Home Appliance Recycling Center (HARC). As the name implies, the center recycles home appliances that have reached the end of their life-cycle. The HARC has the capacity to recycle 250,000 units annually.

For marketers today building brand image includes building a green image. The future of their business, just like the future of this planet, depends on producing green products. Hence, Green Marketing is now a indication of a company's profitability.

Samsung Electronics, another South Korean manufacturer, firmly believes in environmentally friendly products. It uses R410A and R470C refrigerant gases for its chlorine-free air conditioners. These air conditioners do not harm the ozone layer and are at the same time energy-saving. Previously the company used R22, containing freon.

Samsung regularly conducts research to monitor the level of concern and awareness of environmental issues among its target market. This has resulted in products that are really environmentally friendly, rather than those that carry rather questionable "Environmentally Safe" labels.

Samsung's Bio Tech Plus air conditioners have been produced in accordance with environmental concerns. Almost inaudible, these air conditioners boast energy-saving features, with anti-bacteria and anti-fungus elements thrown in. LG, Sharp and several other manufacturers also offer these superior features in their high- end air conditioners.

However, while green features are becoming more important, they are yet to take the most prominent role in marketing and are only a secondary consideration for the majority of consumers. But, as a number of marketers have predicted, the color of the future is green and companies that have led the way, with their environmentally friendly initiatives, will reap their rewards. -- The writer is the author of "Relationship Marketing: Marketing Innovations that wins customers' hearts"