Marketing Green Products
article courtesy of allbusiness.com

Green manufacturing has become a powerful marketing tool.  Consumers increasingly have begun buying green products that are more cost effective, healthier, and leave less of a carbon footprint on our planet.  As a result, manufacturers are developing products that fit this need.  At the same time they are implementing supply chains that are greener.

The basics of green manufacturing focus on minimizing the impact of the manufacturing process on the environment.  It begins with the development of green products and extends to implementing a green supply chain.  Once this has been done, green manufacturing can be turned into a marketing advantage.  Manufacturers viewed as being green, such as Toyota and General Electric, have converted the concept into more sales.

The basic characteristics of green manufacturing include:
  Less consumption of natural resources;
  Less energy used in production;
  Fewer gases and toxic materials released into the environment; and
  Less waste created from the manufacturing process.

Product development studies show that the design stage determines 70% of a product's environmental impact.  Paper made from chlorine-free bleach and a light bulb that uses half the amount of electricity are two products that have lessened the impact of manufacturing on the environment.  One reduces the amount of a toxic material and the other reduces consumption of natural resources, which in this case translates into saving money by cutting energy costs.

Government agencies are now buying more green products and services.  Between federal, state, and local, this amounts to over $600 billion in sales.  In response to governmental needs, several green products are under development.  These include both plastic flatware (forks, spoons, and knives) and plastic garbage bags that are biodegradable.  Biodegradability results in a substantial savings for many local communities that pick up green waste.  If customers gather leaves and such into plastic bags, the garbage company has to remove all the bags, which is costly.  With the biodegradable garbage bag, everything can be composted together which translates into huge savings.

To be successful, green products require a green supply chain.  Supply chains involve everything from the purchase of production materials to the delivery of the finished product to the customer.  This means every aspect of a business needs to adopt a green approach.  To make this happen, manufacturers need to implement an overall green strategy.

One company that implemented a green supply chain strategy is Custom Print.  An offset lithographic printer of commercial color products with annual sales of $4 million, Custom Print made the decision to green their process, which wound up saving them approximately $40,000 annually. 

The areas they concentrated on included:
  Streamlining their inventory. They reduced their on-site inventory of chemicals by 70% with a
    savings of $5,000 a year in inventory and waste disposal.
  Modifying their ventilation. After switching their fountain solution to an alcohol-free system,
    they created a healthier working environment for their employees and cut electricity costs by
    40%, saving them $26,800 annually.
  Reducing their wasted ink. They trained their employees to mix specialty colors from existing ink
    stock, reducing waste while saving them $8,000 a year. 

As a manufacturer, once you've created green products and implemented a green supply chain, the next step is marketing to your customers. This involves (1) getting your product certified, (2) including your product in green procurement systems and lists, (3) appropriately labeling your green product, and (4) developing strategies for marketing. Two organizations that certify green products are Green Seal and Scientific Certification Systems.

When developing strategies for green marketing to consumers, manufacturers need to keep these key concepts in mind:

  understand green consumers and, through their needs, identify opportunities for green products,
  emphasize the direct benefits of a product, such as health or overall cost,
  give consumers the information they need to buy green while maintaining your credibility by only
    making substantiated claims regarding your product and supply chain.