Filed under: Sustainability
When Wal-Mart holds its periodic sustainability milestone meetings, CEO Lee Scott is known to joke about how big the sustainability department is getting. In reality, unlike the retail behemoth’s ballooning marketing department, there really is no sustainability department to speak of, at least in the traditional sense.
Wal-Mart Stores does have the now-commonplace “sustainability officer” — Senior VP-Sustainability Matt Kistler. But when it comes to the traditional trappings of a department head, namely budget and staff, Mr. Kistler is running lean. Fewer than 10 people report directly to him.
So goes the evolving dance between sustainability and marketing, as chief sustainability officers become as prevalent as chief marketing officers in Fortune 500 companies. Although more marketers are striving to act and look green, their sustainability officers seldom come up from the marketing side.
The gap between technical and marketing experts is nothing new, says sustainability consultant Peter Knight, but it must be bridged for companies to effectively communicate their green commitments.
More than 70% of consumers link marketers’ social responsibility to their environmental behavior, according to data from consultancy Conscientious Innovation. In such a world, sustainability officers and CMOs must find ways to join forces.
Influence gap
In many cases, the sustainability department has yet to achieve the size of the typical marketing department or the old-school power that a CMO wields in terms of sheer dollars controlled. And it probably never will.
At Wal-Mart, the “thought is if you’ve got this big department, then others will say sustainability is [that department's] job, not mine,” says spokesman Kory Lundberg. “If it’s integrated into the business, everyone has a commitment to it.”
Or consider P&G. Late last year, Procter & Gamble Co. formally created a sustainability department, naming Len Sauers VP-global sustainability. But while Global Marketing Officer Jim Stengel reports to Chief Operating Officer Bob McDonald, Mr. Sauers reports to Charlotte Otto, global external-relations officer, who reports to Mr. McDonald. Mr. Sauers oversees 50 people, but it’s not a 50-person department in the traditional sense.
“They are working with sustainability as they develop their programs within their own business units,” Mr. Sauers says.
“It’s a funny new duck that’s being created. Generally, [sustainability officers] exercise soft power. They have very little budget, direct reports or organizational authority,” says Adam Werbach, veteran environmental activist and now CEO of Saatchi & Saatchi S, which was created in January when Publicis Groupe announced its acquisition of Act Now Productions, Mr. Werbach’s green consultancy.
source: http://adage.com/greenmarketing08/article?article_id=127538
Filed under: Branding
NEW YORK (Adage.com) — For years Target’s cheap-chic reputation has made it a darling of the fashion world and a favorite among shoppers of all stripes. But now, in the face of a tough economy, its well-cultivated image is turning away consumers who believe its trendy assortments and hip marketing mean steeper prices.
To banish that notion, the retailer is taking pains to make certain its prices are in line with Wal-Mart’s and that customers are aware it, too, can be a one-stop shopping destination. Its marketing messages, as a whole, are being tailored to focus on value and convenience. And, as Target’s “Expect More. Pay Less” goes head to head with Wal-Mart’s “Save Money. Live Better,” execs say the focus will now be on the latter half of their slogan.
Cash-strapped consumers
“The customer is very cash strapped right now. And, in some ways, our greatest strength has become somewhat of a challenge, in that our stores are fun and unique, and we have both what you need and what you want,” Gregg Steinhafel, president-CEO of Target, said during a conference call with analysts. “So, we’re still trying to define and find the right balance between ‘Expect More. Pay Less.’ The current environment means that the focus is squarely on the ‘Pay Less’ side of it.”
Kathryn Tesija, exec VP-merchandising at Target, said that in-store signage posted at the end of aisles is also being evaluated to ensure the value messaging is loud and clear. Circulars have also been revamped to feature strong value headlines, fewer products with bigger images and broad price points.
“We understand that guests sometimes equate clean, well-designed stores and fast and friendly service with higher prices,” said Ms. Tesija. “But we believe guests can have a superior shopping experience and save money. … By increasing communication to our guests about our value and convenience, we will ensure they turn to Target for their needs and wants.”
From a merchandise perspective, the retailer said it is seeing consumers trade down in food categories and, to some extent, in home. National brand equivalents have been performing “exceptionally well,” and the retailer said it has significantly increased the number of those Target brand commodities.
Sticking with designer roots
Still, Target won’t be abandoning its designer roots anytime soon. Ms. Tesija outlined plans for several new designer partnerships across the apparel and beauty categories. Mr. Steinhafel also reiterated Target’s commitment to “delivering the newness, innovative design and exceptional quality that Target is known for.”
During the second quarter, Target saw profits decline 8% while sales at stores open at least a year slid 0.4%. In the last three quarters same-store sales growth has been relatively flat, with traffic at those stores down between 1% and 2%.
“The current environment is the harshest we have seen in many years,” said Mr. Steinhafel. “In the short term, it’s going to remain challenging, and I just don’t really expect to see the traffic trends change until we see a stronger economic climate in the U.S., and so we’re planning our business cautiously.”
By comparison, Wal-Mart last week reported a 17% jump in profits and a 4.6% rise in same-store sales, excluding fuel sales. For the last several quarters, the company has posted gains that defy current economic trends and appear to prove the power of its discount message.
source : http://adage.com/article?article_id=130419
Burger King
Last month I was hungry when the plane landed in Amsterdam’s Schiphol Airport. I decided to get a bite to eat at the fast food restaurant Burger King. Removing my Whopper, fries, and Coke from the tray revealed very non-traditional tray liner artwork… a scene from the Veg City Airport. Veg City is where the Burger King vegetables live… Live it up, actually.
This scene depicts airport security at the Veg City Airport stopping an onion that is not up to Burger King standards. Just like airport security blocks bad people, Burger King similarly screen for only quality ingredients.
You know this onion is bad because they found in his bag: Botox, anti-aging cream, as well as copies of the magazines… “Wet Vegs”, “Playveg” and “Green & Horny.”
Then there’s the surly pickle about to perform a cavity search on the onion. Wow!
This artwork is fun to explore while you’re chomping your burger and fries… But – as I originally asked on my site – is it truly representing the brand Burger King wants to be? And even if there are different standards regarding the appropriateness of nudity in Europe versus the U.S., should Burger King be a different type brand in Europe than in the US?
A Split Audience
I originally posted this on my site on July 7th and have received over 100,000 hits and had to add bandwidth to support the traffic!
The comments I’ve received split into three camps.
- Group 1 – Those that feel this is the coolest artwork.
- Group 2 – Those that are going to boycott Burger King because they don’t want their children exposed to the inappropriate material. (Most people missed the fact that this is a European campaign and wouldn’t be seen in U.S. locations).
- Group 3 – Those that are slamming Group 2 for being so narrow minded. That they should be boycotting Burger King because of their junk food versus cartoon images.
There are a few of you marketers who have commented on my original question… is this tactic appropriate for brand Burger King?
The artwork is part of a series called Veg City supported with an on-line virtual city. In addition to the Airport tray liner other executions include:
The campaign for Burger King is by BBDO’s German Group Munich-based agency, .start. I’ve emailed them a couple of times, but have not received a response.
Take a look at the comments to my original post at the Idea Sandbox Blog.
You can view more images at Chrossn’s Flickr Photostream and by visiting the German Veg City website.
Is this adult-themed humor on-target with the Burger King brand? Has BK shifted from competing with McDonald’s as a family restaurant to an adult destination – closer to Hooters?
source : http://www.mpdailyfix.com/2008/08/big_boobs_erotic_vegetables_an.html
