Marketing fashion products made from recycled materials

The world's oceans contain all kinds of rubbish, particularly plastic that pollutes and never decomposes--and fishing nets that have been thrown away. Now companies are turning ocean rubbish into 'green' clothing and accessories, stylish as well as a good path to sustainability. Consumers appreciate being able to make a difference through their purchases, the companies seek to accomplish societal objectives and the planet gets a little cleaner in the process.

Some brands are working with the nonprofit Parley for the Oceans to build awareness of the threats to ocean life and reuse discarded plastic in new products. Stella McCartney created a fashion collection based on recycled ocean plastics, for example, and also uses recycled nylon and polyester in fashion items. The sunglass brand Clean Waves markets products made from recycled ocean plastics, again in partnership with Parley for the Oceans.

The fast-fashion retailer H&M is buying nylon made from recycled fishing nets (from Aquafil) and turning it into stylish clothing. This partnership increases education about the challenges of ocean pollution and also showcases H&M as a firm actively working to improve sustainability.

Watch for more such partnerships as consumers increasingly seek out brands that are transparent about ethical sourcing and active in pursuing societal objectives.

L'Occitane teams with TerraCycle for sustainability

Group L'Occitane markets all-natural and organic personal care products through 3,200+ retail stores in 90 nations. With headquarters in Luxembourg and Switzerland, L'Occitane's annual turnover exceeds €1,300 million.

Tech-savvy L'Occitane is leveraging the trend of consumers connecting via mobile devices to personalise offers and encourage purchasing through the firm's many e-commerce sites worldwide.

Behind the scenes, the company also works with Provence-based suppliers to source sustainably-produced ingredients for its beauty products.

It's very committed to achieving goals for recycling. As this window display shows, L'Occitane stores in Canada and the US will accept empty containers from any cosmetics brand and recycle them in partnership with Terracycle, which turns the recycled and upcycled materials into eco-friendly new products for sale.

UK consumers can participate in Terracycle recycling in various ways, including bringing recyclable items to a nearby 'brigade' for free recycling.

This post offers an additional example of societal objectives as covered in Chapter 5 of my Essential Guide to Marketing Planning.

Marketing fashions with sustainability in mind

#recycle

Inditex, which owns Zara and other well-known fashion brands, now disassembles old apparel to remake into 'garments with a past'. Its Join Life label features clothing made in part from reclaimed materials and made using processes that are more earth-friendly.

The company also invites customers to bring old/unwanted clothes to selected stores for recycling. If you live in Spain, where Inditex is headquartered, you can have the courier who drops off your Zara purchases take your old clothes back for recycling--quite convenient!

Inditex and other fashion marketers are becoming more active in adopting sustainability and promoting this aspect of their products to customers, suppliers and partners.

H&M, the fast-fashion retailer based in Sweden, has set the ambitious goal of sustainably manufacturing all its fashions by 2030. 'H&M group is . . . pushing the development towards a shift to a circular model; where materials are maximised and waste is minimised', according to its 2017 Sustainability Report. It is investing in startups that search for ways to make fabrics and recycle materials without environmental harm. 'We need to speed the shift toward waste-free models [of business]', says H&M's CEO.

Watch for more sustainability activities as companies seek to conserve natural resources, reduce waste, help the planet and differentiate their brands in the competitive global marketplace.

Updated links to marketing planning ideas and resources

My list of links to marketing planing ideas and resources has been updated. Now you can click to see more than 50 sources of data, advice and news related to:

• Preparing for marketing planning and implementation
• Analysing the marketing environment
• Researching consumer and business demographics
• Marketing ethics, social responsibility and sustainability
• Branding issues and ideas
• Marketing mix issues and ideas
• Marketing channels and retailing trends

For instance, if you're looking for a marketing plan template, my list includes a link to the Australian government's business page with a downloadable guide and template.

So please browse the links the next time you're researching the background for a marketing plan project.

Differentiation through sustainability

In this era of intense competition and easy consumer access to detailed information about products and brands, marketers are differentiating themselves through dedication to sustainability and social responsibility.

H&M, Marks & Spencer and IKEA are only 3 of the growing number of global marketers being recognised by the Better Cotton Initiative for their use of sustainable cotton. The ranking shows which retailers and manufacturers are actively seeking out ethical sources of cotton grown in earth-friendly ways.

World Wildlife Federation, with funding from IKEA, piloted the original initiative to grow cotton sustainably. Now that effort has grown into an international movement.

Brands such as Asos, Nike and M&S recently pledged that all of their cotton goods will be made from sustainably grown cotton by 2025. As part of their pledge, these brands will annually publish their performance in progressing towards this commitment.

In addition, marketers are also looking to increase sustainability by sourcing wool and other materials in ways that protect the environment and the workers. Stella McCartney, for example, has achieved Cradle to Cradle Gold certification for the wool used in its fashion products.

More brands are choosing this method of differentiation, knowing that many consumers pay close attention to sustainability factors when making a purchase decision.

Sustainability Marketing: Fashion Helps Save the Planet

Adidas has partnered with Parley for the Oceans to make and market shoes made from plastic ocean waste. The idea is to raise awareness of the need for clean oceans and recycle this waste in a productive way. Adidas has set a goal of selling one million shoes made from ocean waste by the end of 2017. 

Stella McCartney, who was involved in the Adidas designs, has also partnered with Parley for the Oceans on a new limited-edition backpack made from recycled ocean waste. This product is one of many that will incorporate a new fibre made from ocean waste plastics.

Other fashion marketers are saving the planet as well. ASOS, Tesco, Nike and H&M are some of the brands that will be using only sustainably sourced cotton by 2025. All over the world, fashion marketers are looking at sustainability issues and ways to reduce the stress on natural resources.

How much value do consumers see in buying fashions marketed with sustainability in mind? From the perspective of consumer behaviour, are the ethical issues of sustainability marketing compelling enough to motivate purchasing?

'Versus' marketing strengthens positioning

Marketing magazine has a thought-provoking opinion piece by Mark Ritson, about positioning for competitive advantage. Here's one quote:

The versus position is one in which we make it clear what we stand for to customers by highlighting the differences between ourselves and others.

Remember, positioning is in the mind of the customer--how the customer thinks or feels about your brand and competing brands. Your role is to put forth a 'versus' fitting for your product or brand, one that is compelling enough to influence thought and feeling, compelling enough to encourage a purchase.

It's not enough to say 'my brand is the best'. But if you position versus traditional brands--as one example--or versus a specific competitor, you help customers understand what your brand stands for and why it's the best choice.

Here are two examples of positioning versus traditional competitors:

• Ben & Jerry's website and packaging showcase the brand's social responsibility. The company (owned by Unilever) knows that customers expect ice cream to taste good. Ben & Jerry's stands for more than just good-tasting ice cream. Its positioning relies on the brand being good for the planet, good for workers, good for social causes--not a claim that every competitor can make.
• Innocent positions itself as 100% pure, no additives, no 'nasty' stuff, just healthy, fresh ingredients. This is in contrast to traditional soft drinks that are carbonated and sugary, or that use artificial sweeteners. Plus Innocent (owned by Coca-Cola) is 'sourced sustainably' and gives 10% of profits to charity. Again, not every competitor does what Innocent does.

One last thought: If you use advertising to highlight differences between your brand and another, be sure the comparisons are fair and not misleading.

Marketing with purpose: Think long term

Marketing with purpose is how some of the world's largest businesses are differentiating themselves in today's competitive global economy. At left, an image showing the new packaging of Procter & Gamble's Head & Shoulders shampoo, a bottle made partly from recycled plastics found on beaches.

P&G wants to demonstrate its leadership in sustainability marketing, and this packaging will soon be at in Carrefour stores across France. On the way are hundreds of millions of shampoo bottles made from recycled materials. P&G has also set aggressive multi-year targets for zero manufacturing waste. These and are other actions are building the firm's reputation for sustainability over the long term.

Competitor Unilever has been publicising its sustainability marketing as well. Last month, the company announced ambitious goals for plastic product packaging that is recyclable, reusable or compostable. It is reassessing its products and packaging to reduce the environmental impact wherever possible (as in image shown at right).

In a recent survey conducted in five countries, Unilever found that one in five consumers said they decide to buy based on whether a product was made without harming the environment. Unilever also reported that sales of its brands linked to sustainability are growing much more quickly than non-sustainability brands in the corporate portfolio.

A recent opinion column in The Guardian noted that social activism sells, and brands are busy promoting their good deeds for business reasons. In other words, marketing with purpose is the hottest way to differentiate a brand and make consumers aware of what it stands for, in order to make a sale. Well, yes, but if marketing with purpose is insincere or inconsistent, consumers will soon find that out. P&G and Unilever are committed to marketing with purpose for the long term, with considerable financial and human resources devoted to their environmental protection endeavors.

The latest in McDonald's marketing

McDonald's is always cooking up something new to market. It's just redone its McCafe brand look, as shown above, for a more upmarket, posher image. In fact, the fast-food chain will switch to all-sustainable coffee beans by 2020.

McCafe is challenging Costa and Starbucks and all the others selling gourmet and special coffees in the UK. Also, to be an integral part of local UK communities, the McDonald's site has a special section on grassroots football. Did you see McDonald's holiday advert, featuring Juliette the vintage wooden doll? Fun.

In addition, McDonald's just opened a fast-food outlet a few steps from the Vatican--touching off a controversy. In response to negative comments, the company announced: 'As is the case whenever McDonald’s operates near historic sites anywhere in Italy, this restaurant has been fully adapted with respect to the historical environment'.

BTW, McDonald's UK is highly social: 68m Facebook likes, hundreds of thousands of Twitter followers and lots of videos on YouTube. Working hard to engage customers!

Purpose-driven marketing at Unilever

Unilever's chief marketing officer recently said: 'We need to build brands with purpose. We need to go from "marketing to consumers", to "mattering to people"'.

In other words, the consumer products giant believes in purpose-driven marketing.

One year ago Marketing Week named the top 100 firms for brand purpose--and at the top was Unilever.

Just weeks ago, Unilever arranged to buy Seventh Generation, a US-based brand of household cleaners known for sustainability.

Unilever's executive vice president for global marketing notes that brands need to be activist as part of their purpose: 'Consumers are really expecting brands to create movements. They want to be part of those movements', she explains.

Yes, the firm's brands seek to make a positive difference (via social responsibility, sustainability and so forth). And in the process, Unilever benefits by meeting customers' needs, increasing public trust and, ultimately, improving the bottom line. 'Fifty percent of Unilever's growth today is coming from brands that are acting on their purpose', the EVP says.

Not-so-fast fashion at Urban Outfitters

The US-based clothing retailer Urban Outfitters has been expanding across the pond in the UK and continental Europe.

The European managing director of Urban Outfitters says this about the retailer's merchandise:

Currently around 20% of our offer is our own-brand edit and the rest own buy. The mix of both is really important.

Contrary to the trend of outsourcing production and encouraging fast adoption and fast disposition of fashion, Urban Outfitters is promoting an own-brand label that is sourced and made in the UK from fabric remnants. Not only does the ReWork brand represent up-to-date fashion, it makes the most of UK design and materials. The result is, therefore, a bit experimental and feels like a limited-edition product line because the clothing items are made from remnants--with the actual remnants inspiring the designers, rather than the designers searching for material after creating a style. ReWork also helps the retailer polish its sustainability credentials.

Urban Outfitters reaches its European and UK target audiences through a variety of social media, including Pinterest, Instagram and Twitter.

Unilever's social, mobile and digital future

Unilever's head of consumer and market insights said last week that brands must 'Be social or get ready to be branded "anti-social"'. Social media marketing is a strength for Unilever, which has found that buzz actually translates into sales, not just goodwill and brand awareness.

With market demographics and behaviours changing, the Unilever exec says companies should not worry about having different strategies for seniors and Millennials, two customer segments that his brands target.

Unilever's well-known brands continue to use traditional adverts but some--such as Knorr--are also experimenting with artificial intelligence to give customers the information they need, precisely when needed. As an example, Knorr's Chef Wendy invites consumers in Asia and Africa to text for recipe ideas based on the foods they have on hand.

Looking toward the future, Unilever is part of a new coalition that will share market-research data with the goal of helping all better prepare for sustainability, address income inequality and eliminate poverty.

In addition, the Unilever Foundry project is focusing on five areas where startups can make a difference in 2016: (1) retail, (2) content creation, (3) data insights and innovation, (4) sustainability and (5) new technologies.

Marketing WWF's Earth Hour

Social media and traditional media are helping the World Wildlife Fund to promote Earth Hour on 19 March. The idea is to switch off the lights from 20.30 to 21.30 and go social to support sustainability.

This worldwide effort, which began in Sydney in 2007, increases awareness of our role in protecting the planet's precious natural resources, not just wildlife.

The social media campaign by WWF UK includes:

• #PassthePanda and #EarthHourUK hashtags to encourage participation on Twitter, Facebook and other sites
• YouTube videos
• Incredible nature photos on Instagram
• Pinterest posts
• A Facebook app to 'donate your social power' by posting about local environmental issues and sharing information with people in other areas

Traditional media marketing by WWF includes an unusual and engaging advert to attract attention and encourage participation. Other groups are joining the campaign. The Sustainable Restaurant Association's members will serve dinner by candlelight during Earth Hour, for instance.

IKEA designs products for today and tomorrow

IKEA's UK FB page has more than 1 million likes, its Instagram account has more than 100k followers, its Pinterest boards have 31k followers, and some of its YouTube videos/adverts have more than 1 million views.

This is a highly social brand that earns the loyalty of customers worldwide through well-designed, reasonably-priced products, delivered with quality service and sourced with sustainability in mind.

The home page of IKEA's UK site tells visitors: 'Welcome to IKEA. We believe everyone deserves to have a beautiful home filled with well-designed furniture. And still have money left over for other things to enjoy in life. That’s why we offer our home furniture at prices so low as many people as possible will be able to afford them.'

To keep IKEA's products both fashionable and affordable, the company develops 2,000 new products every year. It also redesigns 2,000 products every year, refining the style or finding new ways to simplify the construction or cut costs to cut prices. As a result, IKEA must carefully manage inventory and product display within each department and each store, changing 'according to consumer behaviour' based on data analysis from buying patterns and ethnographic research in customers' homes.

Preparing for the products and designs of tomorrow, the company maintains a future living laboratory known as Space10 in Copenhagen. The website explains: 'Space10 investigates the future of urban living through a series of labs. Each lab sets out to tackle a specific challenge, and unfolds through a number of talks, workshops, pitch nights, design residencies, exhibitions, collaborative projects, and other formats.' Space 10 is open to the public and holds workshops for all ages, so visit the next time you're in Copenhagen.

Strategic CSR in India

Strategic corporate social responsibility (CSR) allows marketers to align their plans for sustainability, community involvement and charitable activities with their business goals and activities. The idea is to allocate resources towards efforts that are important to stakeholders and to the business's success. 

Government-set rules in India, for example, now include a goal for businesses to spend 2% of after-tax profit on CSR in the country. Deciding how, when and where to invest money, time and management resources is a matter of strategy.

At Toyota Kirloskar Motor, for example, the CSR mission statement is: Be a socially committed corporate through building vibrant communities in harmony with nature, aiming to become the most admired company in India and meet customer expectation and be rewarded with a smile.

The automaker's CSR focus is on health/hygiene, civic amenities, stakeholder engagement, art and culture, skill development, road safety, education and environment (see graphic above). The firm recently distributed notebooks and book bags to school children in Ramanagara as part of its $50 million CSR strategy.

Hindustan Unilever, which makes personal care products (under brands such as Lifebuoy and Lever), manages its CSR strategy in India according to this vision: To grow our business whilst reducing the environmental impact of our operations and increasing our positive social impact.

The company's managing director said in a recent interview: 'We as a company do not believe in donations or cheque-signing philanthropy. Something that can make a meaningful impact on the environment, the community, and the society at large is something that our sustainable living plan endeavours'.

Two of Hindustan Lever's CSR goals (also CSR goals of its parent, Unilever)are to further sustainability and empower entrepreneurship. Its Shakti program accomplished this by recruiting women from small villagers as distributors of the company's products. The long-term value of this ongoing program not only improves local economies, it benefits the company's market reach.

Fast Fashion and Sustainability

Is sustainability compatible with fast fashion? Even though fast fashion is based on speedier fashion cycles and adoption of new styles and clothing items, H&M, Zara and their competitors recognise that 'throw away' fashion is not just wasteful, it can contribute to environmental damage.

H&M, based in Sweden, is increasing its focus on sustainability. It has a Chief Sustainability Officer to keep the retailer on track toward green goals. And it issues a sustainability report to demonstrate what it's doing to save the planet and reassure customers of its commitment to the natural environment.

Further, H&M has added clothing made from sustainable materials and, just as important, it actively encourages recycling inside and outside the organisation. Among other initiatives is a fashion collection programme to encourage consumers and designers to make the most of garments by reusing materials, passing garments along for use by others or turning used garments into something else.

Researching the marketing environment

DEVELOPING YOUR MARKETING PLAN

Every marketing plan begins with a review of the external trends and changes that affect the company, product, customers, buying trends and competition.

To get a headstart on researching the marketing environment, try clicking on the links shown on my Marketing planning links page. Every link is regularly tested and updated as needed--plus new links are added as well.

Links are categorised according to:

• Preparing for marketing planning
• Analysing the marketing environment
• Researching consumer and business demographics
• Marketing ethics, social responsibility and sustainability
• Branding issues and ideas
• Marketing issues and ideas
• Marketing control and implementation
• Retailing and channel trends

For a broad overview of the marketing plan, including a free downloadable template, click here.

Update: Marketing at Reckitt Benckiser

Reckitt Benckiser markets some very well-known brand names in health, hygiene and household products, including Finish, Strepsils, Vanish, Scholls, Mucinex and Airwick. This post updates the RB opening case on pages 1-2 of Essential Guide to Marketing Planning 3e.

Here's how RB's main product categories contributed to turnover in 2014:

• Hygiene products generated 41% of RB's revenue
• Health products generated 31% of RB's revenue
• Home products generated 20% of RB's revenue
• Portfolio brands and foods generated 8% of RB's revenue

Each RB brand has its own digital marketing strategy, including a distinct social media personality and presence. Shailesh Shukla, VP of marketing for RB, notes that consumer behaviour is what drives marketing strategy. How do consumers perceive each brand and how do they use digital media with respect to each product category? The answers to those questions are key to RB's media and content decisions.

Corporate RB is also social, with 236,000 FB likes, 13,000 Twitter followers, and a YouTube presence. In addition, RB pursues an active social responsibility and sustainability agenda.

Unilever's sustainability strategy resonates with customers

Unilever is seeking to support sustainability through improvements in health and well-being (blue on the chart), reduced environmental impact (dark green), enhancing the livelihoods of communities (red) and making its businesses more transparent and sustainable (light green).

What does the multinational consider to be a material issue or opportunity? From 2010, when the sustainability initiative was implemented, Unilever applied four criteria:

• The degree to which an issue is aligned with our vision and purpose, brand portfolio and geography.
• The potential impact on our operations, or on our sourcing and consumers.
• The extent of Unilever’s influence on the issue.
• The importance of an issue to our key stakeholders.

Unilever now has evidence that progress on sustainability issues resonates with its customer base. Its brands most active in sustainability initiatives (Dove, Lifebuoy, Ben & Jerry's, Comfort) 'accounted for half the company's growth in 2014 and grew at twice the rate of the rest of the business' according to CEO Paul Polman.

In other words, a solid sustainability strategy can help save the planet, improve the quality of life for stakeholders and bring the company closer to growth goals.

Keeping up with key performance indicators (KPIs)

Key performance indicators (KPIs) are specific financial and non-financial measures that a company, governmental agency or NGO uses to determine whether its marketing strategy is moving the organisation in the direction of its short- and long-term goals.

Different industries rely on different KPIs to assess marketing performance. Banks--including Metro Bank, based in London--want to increase the number of account-holders, increase the number of services utilised by each customer, increase deposits and retain customers for years. Performance is measured by KPIs that indicate progress towards those goals.

Metro Bank, a 'challenger bank' competing with long-established banks on the high street, differentiates its neighborhood 'stores' on the basis of responsive, in-person service while offering online and mobile banking for customers who want tech options. Measuring the results of Metro's marketing strategy requires KPIs that link back to the goals, such as growth in customer deposits. Another KPI is profitability--so far, a goal that Metro Bank is moving towards but has yet to achieve.

What about KPIs for retailers? Online grocery retailer Ocado seeks to increase customer spend, among other goals, which translate into KPIs such as growth in average order size. As the above table from Ocado's recent results indicates, other KPIs include average number of orders per week, average deliveries per van per week and on-time delivery performance. Product wastage is not just a financial measure--it affects Ocado's sustainability performance, as well.