Green to Gold: How Companies Are Using 'Green Marketing' To Get Ahead

Starbucks, Absolut Vodka, Burberry, Carlsberg. All are large brand names—but with what more in common? 

In 2018, each of these companies developed marketing strategies in line with environmental practices. Some were more extreme, like the Absolut Vodka campaign sporting its' CEO Alexandre Ricard completely naked. Their slogan, "the vodka with nothing to hide," shows they aren't afraid to also expose their ingredients and how they manufacture their products in an environmentally mindful way.

Other brands like Starbucks, Carslberg and Burberry took similar, but lighter approaches promising to phase out the use of plastic straws, plastic rings on 6-packs and the use of fur, respectively.

Relating Practice to Researched Theory

Now, with the rise of international concern for environmental issues, companies are facing the issue of how to implement environmentally-friendly practices into their own marketing strategies.

The issue? Stamping a ‘green footprint’ to their business models can come at a high price. Therefore, instead of focusing on the potential financial drawbacks—many companies have started using 'green for good' and using environmentally-friendly thinking as marketing to turn higher profits.

Already, the brands mentioned above have seen their profits and market shares increase. Absolut Vodka, for example, had its' sales increase by 5% or by approximately 5.1 billion euro during the first 6 months of this year (its' 'Naked' campaign appeared in early February).

This ‘green marketing’ practice in line with research conducted by Dangelico and Vocalelli from 2017. In order to understand how environmental sustainability was changing the commercial market, the two Italian researchers conducted an analysis of 112 previous environmental-related marketing studies looking at: how green marketing has changed over time and how it is best practiced.

Tips From Researchers On Best 'Green Marketing' Practices:

1.  Segment Your Target Audience

The researchers found, in determining the target group, identifying behavioral characteristics were key. To determine this, not only look at how environmentally active the consumer is, but also determine what the client wants. Absolut Vodka knows their consumer desires quality ingredients in order to justify a higher price. That's why they let their ingredients (and bodies) be fully exposed to the public to gain trust.

2.  Positioning Towards The Public

In order for companies to sell green products, they must appear green themselves. The researchers found higher green brand image = higher green brand equity. Burberry's push to eliminate fur products fits this image and the current fashion market perfectly. The veil of green surrounding the fashion industry right now (with the first fur-free fashion week in London this year) is pushing brands like Burberry, Versace and Gucci to fall in line. If they want to sell green products, they must evoke the green image.

3. Differentiation From The Market

The last (possibly most important) tip from the researchers is to use the green image "as a lever" to separate your company from the rest. Not all companies are using green marketing to get ahead and because this, it can make your innovative business model stand out and be memorable. Also, it shows your company is in line with Corporate Social Responsibility (CSR) practices and is not only concerned with making an extra dollar (or euro, etc.).

So, the next time you think marketing strategy—also remember to think green.

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About the Author: 

Nicole Ares is a Political Communications Master's Student at the University of Amsterdam. She has previous experience in journalism as well as strategic communications work for international non-governmental organizations. Her topics of interest include: social reform, US politics, education and sustainability.

Scholarly Sources For This Article: 

Dangelico, R. M., & Vocalelli, D. (2017). “Green Marketing”: An analysis of definitions, strategy 
steps, and tools through a systematic review of the literature. Journal of Cleaner Production, 165, 1263-1279. doi:10.1016/j.jclepro.2017.07.184