79
Green marketing, constructio n and how we stand to benefit This presentation is about Green Marketing in the construction industry, and what it means to us in that industry. The photo, by the way, comes from Vail, Colorado, which instituted new “Green” building codes several years ago.

Green Marketing

  • Upload
    prosoco

  • View
    2.297

  • Download
    0

Embed Size (px)

DESCRIPTION

Intro to green marketing as it relates to green construction. Just the basics for folks who aren't familiar with "green" construction issues. There's still some of us left!

Citation preview

Page 1: Green Marketing

Green marketing,

construction and how we

standto benefit

This presentation is about Green Marketing in the construction industry, and what it means to us in that industry. The photo, by the way, comes from Vail, Colorado, which instituted new “Green” building codes several years ago.

Page 2: Green Marketing

•What Green Marketing is•Why it’s important in the construction industry•Rules for Green Marketing•Obstacles•Successful green marketers

We’ll look at what Green Marketing is, why it’s important and how it can be helpful. I’ll discuss some Green Marketing guidelines for doing it right – as well as Green Marketing obstacles and how to overcome them. Along the way, I’ll point out some companies that have successfully marketed themselves as “Green.”

Page 3: Green Marketing

Now I don’t want you to think I’m some big expert and this presentation is about telling you your business.

Page 4: Green Marketing

This presentation is more of a report that I’m giving to you on what I’ve learned recently about Green Marketing.

Page 5: Green Marketing

Green Marketing

I think some of the things we’re learning about Green Marketing at PROSOCO might be useful to you, too. This is our “Green” webpage on the www.prosoco.com website.

Page 6: Green Marketing

We started learning about Green Marketing in early 2009 when trying to get our products specified for a well-known big box store.

Page 7: Green Marketing

This chain is heavily involved in Green Marketing. They want the market to know that they are on the side of the environment and sustainability.

Page 8: Green Marketing

Their officials not only quizzed us on how “environmentally friendly” our products are…

Page 9: Green Marketing

They also wanted to know how environmentally friendly and sustainable our whole operation is! They want their customers to know that not only are their stores built and maintained with environmentally friendly products – but the manufacturers who make the products are ALSO environmentally friendly and sustainable.

Page 10: Green Marketing

Newand improvedRecyclablepackagingunder way for PROSOCOproducts

Fortunately, we had some things we were able to tell them about how “green” PROSOCO is. They liked our New, improved recyclable packaging program, for one.

Page 11: Green Marketing

Wal-Mart also liked the fact that we recycle some of the water we use in making our products. We call the recycled water “Goldwater,” because it saves us money on our water bill.

Page 12: Green Marketing

•Test line 1•Test line 2

Now don’t get me wrong. We’re not doing these things to try to save the world. Recycling water is good, but we’re doing it to save money on our water bill.The recyclable packaging is great for the earth, but we’re doing it to save money, storage, transport and disposal costs for ourselves, our customers and our end-users. If the earth can survive as a result, that’s an added plus.

Page 13: Green Marketing

•Quality Products•Customer Care•Sustainability

But the whole big box store exercise got us thinking. If they found our construction products and practices desirable from a “green” standpoint… maybe others would too! And to our standard marketing points of “quality products” and “top customer care,” we could add “sustainable products and practices.”

Page 14: Green Marketing

Now just like you, I’ve seen all the “Green Marketing” frogs, flowers and bunnies out there. Very nice. But before we jumped into promoting PROSOCO for the Green Construction market, I wanted to know –

Page 15: Green Marketing

Green construction

•What kind of money?•Real or fad?

-- what kind of money is involved in the “green” construction market? And is the “Green Construction” movement a real thing ? Or is it just a passing fad full of unverifiable claims? Here are some interesting things I found in answer to those questions.

Page 16: Green Marketing

1 The Turner Corp., New York, N.Y.

2 Webcor Builders, San Mateo, Calif.

3 Skanska USA Inc., Whitestone, N.Y.

4 Bovis Lend Lease, New York, N.Y.

5 Swinerton Inc., San Francisco, Calif.

6 PCL Construction Enterprises Inc., Denver, Colo.

7 Clark Group, Bethesda, Md.

8 Hensel Phelps Construction Co., Greeley, Colo.

9 Gilbane Building Co., Providence, R.I.

10 The Haskell Co., Jacksonville, Fla.

Is there $$ in Green construction?

Is there money in Green construction? Let me ask you this -- do you recognize any of the construction outfits on this list? Of course you do. They are some of the biggest contractors in this country.

Page 17: Green Marketing

1 The Turner Corp., New York, N.Y.

2 Webcor Builders, San Mateo, Calif.

3 Skanska USA Inc., Whitestone, N.Y.

4 Bovis Lend Lease, New York, N.Y.

5 Swinerton Inc., San Francisco, Calif.

6 PCL Construction Enterprises Inc., Denver, Colo.

7 Clark Group, Bethesda, Md.

8 Hensel Phelps Construction Co., Greeley, Colo.

9 Gilbane Building Co., Providence, R.I.

10 The Haskell Co., Jacksonville, Fla.

2008 Top 10 “Green” contractors

They are also 2008’s Top 10 “Green” Contractors in the country, by revenue, according to the publication “Engineering News-Record.”

Page 18: Green Marketing

The Turner Corporation

#1 Green contractor#3 Overall contractor

Let’s look at #1 on the list, The Turner Corporation. They are also the third biggest U.S. contractor overall, according to Engineering News-Record. Only Bechtel and Fluor corporations are bigger.

Page 19: Green Marketing

The Turner Corporation

$10.49 BILLION - overall

The Turner Corporation earned $10.49 BILLION in 2008. In my opinion, any number that ends with the word “billion” is worth paying attention to.

Page 20: Green Marketing

The Turner Corporation

$10.49 BILLION - overall

$3.14 BILLION - green

30 percent of that revenue – $3.14 Billion – came from so-called GREEN projects.

Page 21: Green Marketing

Green projects

•3rd party rating groups

•Objective standards

“Green” projects are projects that are registered or certified by third-party rating groups using objective environmental or sustainable development standards.

Page 22: Green Marketing

LEED - Silver

Ford Motor Company Engineering Design Center

An example is the Ford Motor Company Engineering Design Center, Evanston, Illinois. This Turner new construction project achieved a LEED silver rating.

Page 23: Green Marketing

Leadership in Energyand Environmental Design

L E E D

As you probably know, LEED stands for Leadership in Energy and Environmental Design. It’s one of those objective rating systems for sustainable or environmental design and construction.

Page 24: Green Marketing

U.S. Green Building Council

L E E D

LEED is developed and administered by the U.S. Green Building Council – one of those third-party groups I mentioned. I’ll talk more about LEED later in the presentation, because it helps answer the question – “Is Green construction real or just a passing fad?”

Page 25: Green Marketing

Green Construction is big business

•44 States•163 localities•12 Federal agencies•39 colleges & universities

Back to the money question -- I found that Green construction is big business and getting bigger. Green Building Insider, an e-newsletter covering Green construction, recently reported that 44 states, 163 localities, 12 Federal agencies and 39 colleges and universities currently REQUIRE green construction or at least consideration of green construction. That’s in addition to demands for Green construction from private enterprise, like the big box store.

Page 26: Green Marketing

RANK (2008) FIRM

1 HOK, St. Louis, Mo.

2 URS Corp., San Francisco, Calif.

3 Gensler, San Francisco, Calif.

4 HKS Inc., Dallas, Texas

5 Fluor Corp., Irving, Texas

6 Kimley-Horn and Associates Inc., Raleigh, N.C.

7 AECOM Technology Corp., Los Angeles, Calif.

8 Perkins+Will, Chicago, Ill.

9 Tetra Tech Inc., Pasadena, Calif.

10 Perkins Eastman, New York, N.Y.

2008 Top 10 “Green” design firms

In addition to its Green contractors list, Engineering News-Record also compiled a list of the top 100 Green Design firms.Recognize any of these names? Like the contractors, they are some of the biggest design firms in the country.

Page 27: Green Marketing

RANK (2008) FIRM

1 HOK, St. Louis, Mo.

2 URS Corp., San Francisco, Calif.

3 Gensler, San Francisco, Calif.

4 HKS Inc., Dallas, Texas5 Fluor Corp., Irving, Texas

6 Kimley-Horn and Associates Inc., Raleigh, N.C.

7 AECOM Technology Corp., Los Angeles, Calif.

8 Perkins+Will, Chicago, Ill.

9 Tetra Tech Inc., Pasadena, Calif.

10 Perkins Eastman, New York, N.Y.

2008 Top 10 “Green” design firms

Let’s look at #4 HKS.

Page 28: Green Marketing

I like HKS, because they used my company’s products at the recently completed Cowboys Stadium, just outside of Dallas.

Page 29: Green Marketing

•300+ LEED-accredited professionals on staff

•40 million square feet of LEED-certified and LEED-registered projects•$11 billion of LEED-certified and LEED-registered projects•Ranked 5th in ENR’s Top 100 Green firms•Designed world’s largest LEED project

Here are some of HKS’ Green Marketing points from their website. They’re a little out of date. Since HKS posted this, the company moved up on the “Green List” from #5 to #4. And that largest LEED project?

Page 30: Green Marketing

That’s the Palazzo Hotel and Resort Casino in Las Vegas. Certified LEED Silver.

Page 31: Green Marketing

Palazzo Hotel and ResortLEED Silver

Annual savings•10.1 million kilowatt hours•41 million gallons of water•19,000 therms of gas

What makes the Palazzo Green? According to the HKS website, the building is proven annually to save 10. 1 million kilowatt hours in energy; 41 million gallons of water (which is important when you live in the desert), and 19,000 therms of gas. I’m not sure what 19,000 therms of gas actually represents, but it sounds expensive. Now, anyone can make claims like these – but these claims are backed up by the U.S. Green Building Council’s independent LEED certification.

Page 32: Green Marketing

Leadership in Energy

and Environmental Design

So let’s briefly review what LEED is and how it works.

Page 33: Green Marketing

•Voluntary program•U.S. Green Building Council

LEED is a voluntary program. It’s administered by the non-profit group, the U.S. Green Building Council.

Leadership in Energy

and Environmental Design

Page 34: Green Marketing

•Independent certification•Guidelines•5 main categories

LEED is an independent certification system. It provides guidelines in 5 main categories for sustainable, high-performance buildings like the Palazzo.

Leadership in Energy

and Environmental Design

Page 35: Green Marketing

5 main categories

•Sustainable Site Development•Water savings•Energy efficiency•Material selection•Indoor environmental quality

If the building design and performance meet the LEED requirements in these five areas, the U.S. Green Building Council will award the building LEED certification. The building must meet standards for sustainable site development, water savings, energy efficiency, material selection and indoor environmental quality.

Page 36: Green Marketing

LEED certification levels

•Platinum•Gold•Silver•Certified

Based on how well the building meets those standards, it could be certified as LEED Platinum (the highest level), LEED Gold, Silver, or LEED Certified.

Page 37: Green Marketing

•LEED•GreenGuard•Green Seal•SCS•EcoLogo

Independent certification

Though LEED is one of the most well-known third-party certifiers, it’s not the only one. A group called GreenGuard also offers independent, third-party certification of buildings for sustainability and environmental performance. Other groups, like EcoLogo and GreenSeal certify products and services. Like LEED they look closely before they give their seal of approval. SCS, which stands for Scientific Certification Systems, subjects products to rigorous testing and examination before certifying them as sustainable or environmentally responsible.

Page 38: Green Marketing

Advantages

Some of the advantages of buildings constructed to LEED or other “Green” specifications are that operating costs are generally lower, and the asset value is higher than that of traditional buildings that haven’t taken sustainability issues into account. Other advantages include better environments for occupants, and the fact that “green” buildings often qualify for tax rebates, zoning allowances and other incentives. And in today’s environment-conscious society, there’s status involved in owning, designing, building and working on a certifiably sustainable building.

•Lower operating cost•Increased value•Better for occupants•Qualify for incentives•Bragging rights

Page 39: Green Marketing

NOT a passing fad

Green construction

So, is Green construction just a passing fad marked by unverifiable claims of environmental friendliness? The organizations, advantages and money involved would suggest otherwise. How much money is involved in green construction each year?

Page 40: Green Marketing

$60 BILLION$36 -49 billion

Figures vary. Green Construction Insider reports the value of Green Construction in this country at closing in on $60 Billion in 2009. Mc-Graw Hill Construction is more conservative, estimating $36 - $49 billion. Either way, it’s a lot.

Page 41: Green Marketing

Green construction

•Supports 2.4 million jobs•$120 BILLION in wages

A study by technology consulting firm Booz Allen Hamilton, released in November 2009, found that spending on green construction already supports more than 2.4 million jobs, and from 2000 to 2008 generated more than $120 billion in wages alone.

Page 42: Green Marketing

Green construction

•Create 7.9 million MORE jobs•Add $554 BILLION to GDP

The study also predicted green building practices will create 7.9 million MORE jobs and add $554 billion to the Gross Domestic Product of the U.S. over the next four years.

Page 43: Green Marketing

What about the DOWN economy?

What about the recession and the down economy?

Page 44: Green Marketing

What about the DOWN economy?Green building will grow despite current negative market conditions.

--McGraw Hill Construction, building consultants

Building consultant McGraw-Hill Construction estimates continued growth in Green Construction despite the recession. How much?

Page 45: Green Marketing

What about the DOWN economy?•$96 - $140 BILLION - 2010 to 2015•Growing public awareness•Government interventions•Advantages for owners--McGraw Hill Construction, building consultants

Over the next five years, McGraw-Hill forecasts Green construction market growth to $96 billion, upward to $140 billion. The company bases that on growing public awareness of green practices, heavy government interventions, and recognition by owners of bottom-line advantages.

Page 46: Green Marketing

What about the DOWN economy?Green seems to be the one area of construction insulated from the downturn.

--McGraw Hill Construction, building consultants

They say Green construction is the one area of the construction industry that seems recession-proof.

Page 47: Green Marketing

30% 2008 Construction

40% 2009 backlog

50% New Sales

Green Marketing

Companies like Turner are aggressively pursuing – and getting -- their share of those billions. They’re doing it by marketing their commitment to Green construction. The header you see here comes from the Turner website. And while 30 percent of their 2008 construction was green, 40 percent of their backlog for 2009 is green, and 50 percent of their new sales are being registered for LEED certification, according to Engineering News-Record.

Page 48: Green Marketing

Green Marketing•Green Designs

•Green Contractors

•Green Subs

•Green products

To build green designs like the Palazzo, green contractors like Turner hire green sub-contractors who use the green products specified by green designers, like HKS.

Page 49: Green Marketing

Green Marketing

•Products

•Projects

•Procedures

So we came to realize what HKS, Turner, Wal-Mart and many other big, successful companies already know. We needed to tell the market about PROSOCO’s Green products, projects and procedures. Just like the big boys do.

Page 50: Green Marketing

Green Marketing

Create a favorable environment for sales by promoting green attributes.

That, simply, is what Green Marketing is all about – creating a favorable environment for sales by promoting your green attributes.

Page 51: Green Marketing

Green Marketing

•Wal Mart

•Turner

•HKS

Wal Mart does it. Turner does it. HKS does it. And PROSOCO is starting to do it.

Page 52: Green Marketing

But like you, I’ve seen enough of green marketing done the wrong way to know I’d better do some research on how to do green marketing right before committing PROSOCO’s time, talent and treasure. I know the Hummer has many wonderful features, but I struggle with the concept that fuel efficiency is one of them.

Wrong way

Page 53: Green Marketing

Green Marketing•Focus on customer needs.•Know your customer.•Educate your customer.•Be transparent.•Price properly.•Reassure the buyer.•Empower the consumer.•Act holistically.•Engage emotionally.•Strive to eco-innovate.

So I read some books, and went online. I found no shortage of rules on how to market green. They were all pretty good, but there was far too much advice to get on this slide.

Page 54: Green Marketing

Green Marketing•Identify green marketing points

•Use the customer’s point of view

•Remember core business issues

•Back up your claims

•Communicate

It all seemed to boil down to these main concepts: Identify your green marketing points; look at those marketing points from your customers’ point of view; Pay attention to core business issues of product and service pricing, effectiveness and meeting customer needs; be able to back up your claims with solid information. Get your Green story out to the market. Let’s look at each one of these principles more closely.

Page 55: Green Marketing

Identify green marketing points•Recycling•Reduced fuel/energy/water•Green projects•Green products

Chances are you are already engaged in sustainable practices, for the same reason PROSOCO is. Who can afford waste anymore? Do you recycle? That’s a green marketing point. Have you found ways to reduce fuel, energy or water use? Have you been involved in LEED or other certifiably green or sustainable building projects? Do you make or use products that are verifiably green, or, if not, that contribute to sustainability? These are all points you can use to tell your “Green” story.

Page 56: Green Marketing

Use customers’point of view•Recycling•Certified green products & services•Energy & resource efficiency•Some of the above•All of the above

Once you’ve listed all your “Green” marketing points, look at them from your customers’ point of view. That tells you how loudly to trumpet or softly to whisper about what you’ve got going on. If recycling cardboard packaging is all you’ve got – that’s ok. That’s still a blurb and photograph on your website. But if you use all certified “green” products and your vehicles are all fuel-efficient, then maybe that’s an ad in the trade magazines, or a marketing flyer, or a page in your brochure.

Page 57: Green Marketing

Use customers’point of view•Lots of green activity•Some green activity•Little green activity

The point is that customers will be skeptical of companies that promote themselves as “green” if they only have a little green activity going on. But even a little green activity is worth promoting, as long as it’s kept in perspective.

Page 58: Green Marketing

Core business issues•Pricing•Effectiveness•Customer need

Just because we’re talking “green” and “environment,” and “sustainability” doesn’t mean we can lose sight of core business issues. The green products and services we market have to be priced for profit. They have to be as effective as non-green alternatives. And customers have to want them.

Page 59: Green Marketing

Core business issues

3M provides a good example. Attempting to make audio tape without VOC-producing solvents, 3M scientists came up with a water-based coating for the tape the company could market as VOC-free. Unfortunately the VOC-free version didn’t have the temperature range of the solvent-coated tape. It often melted under normal use. They were so excited about their “green” tape, they forgot the customers’ need for an effective product.

Page 60: Green Marketing

Core business issues

On the other hand, Toyota paid strict attention to business issues with its wildly successful Prius hybrid. 10 years after its intro in 2000, the cars are still selling faster than the company can make them. That’s because Prius is eco-friendly, without sacrificing performance. It meets customers’ needs for reliable transportation, and while pricey, isn’t out of the ballpark.

Page 61: Green Marketing

No numbersor case studies means no claims.

It sounds obvious – don’t make claims that can’t be supported. But that’s tougher than it sounds. At PROSOCO, we are positive that when schools use our Consolideck products to put in finished concrete flooring, they save money on maintenance, that they can spend on computers and other educational tools. We would love to use that as a marketing point. Unfortunately, there are no numbers or case studies to back it up. So maintenance savings from concrete floors equal more money for educational tools is a claim we don’t make. That concept – back up your claims – is important in Green Marketing, where consumers are already skeptical about Environmental claims.

Back up claims

Page 62: Green Marketing

Back up claims3rd-party certificationmeans claims.

On the other hand, we got Consolideck® LS, LS Guard, and LS/CS -- lithium-silicate hardeners, densifiers and sealers for concrete floors – and GemTone Stains -- tested by Scientific Certification Systems to see if they met the nation’s toughest standards for Indoor Air Quality. They did!

Page 63: Green Marketing

Here’s our press release about certification published free in Environmental Design & Construction Magazine.

Page 64: Green Marketing

Here we tout it as part of one of our ads in School Construction News. We always knew these products help protect indoor air quality. But we couldn’t make the claim until we had the facts and figures to back us up.

Page 65: Green Marketing

Communicate•Ads•Brochures•Flyers•Press releases•Social media•Website•Word-of-mouth

These days, there’s no shortage of ways to communicate your green attributes. Some, like ads and brochures can be pricey. Others, like press releases, website and social media postings, and word-of-mouth are free.

Page 66: Green Marketing

Good for the environment

Marketing your green attributes is also good for the environment – the sales environment!

Page 67: Green Marketing

Obstacles

In my research, I also learned about a few obstacles to green marketing. They’re not insurmountable, though.

Page 68: Green Marketing

Obstacles•Old habits•Hard to define•Greenwashing•Green fatigue

Here are four big ones. Customers and end-users can be reluctant to change to “green.” Also, despite all those third-party independent verifiers I mentioned, sometimes it’s hard to nail down whether or not a product or service is green. And when marketers make false or misleading green claims – called “greenwashing,” that hurts us all. It leads to “Green Fatigue” – where customers get so bombarded that they can’t figure out what’s green and what isn’t – so they just tune it all out. Let’s look at each of these and see how to get past them.

Page 69: Green Marketing

Old habits•Change is a gamble•Don’t lead with green•Solve a problem•Use endorsements

Let’s face it – some of us in construction may be reluctant to change our ways. Trying something “new, ” let alone “green” on a multi-million dollar project may seem like too much of a gamble for some customers or end-users. Oregon-based market research firm Research 13 suggests communicating “green” attributes second or third – behind the solution to a problem, or using endorsements.

Page 70: Green Marketing

Hard to defineIs concrete green?YES NO

•Sustainable•Recyclable

•Energy-intensive•Greenhouse gasses

Concrete is green, right? It lasts a long time, so it’s sustainable. It’s also recyclable. On the other hand, maybe it’s not so green. Concrete is energy-intensive to make and transport. In production, concrete creates a lot of the world’s greenhouse gasses. So is it green or not? One thing is sure – green can be hard to nail down.

Page 71: Green Marketing

Hard to define•May be up to you•Use customers’ viewpoint•Use facts and figures•May be ‘environmentally preferable’

In cases like that of concrete – it may be up to you to decide whether you can market the product or service as “green” or not. If that’s the case, look at it from your customers’ point of view. If your customers would be skeptical, you probably should be, too. Take into account facts and figures. Water-based? Recyclable? If what you do or make isn’t green – but helps produce a sustainable result, that could be “environmentally preferable.”

Page 72: Green Marketing

GreenwashingPurposely false or misleading

Greenwashing is intentionally making green claims for products and services that aren’t. An example is a well-known U.S. car maker that promotes its SUVs as environmentally friendly, when the facts are that those vehicles are far more harmful to the environment than most other autos.

Page 73: Green Marketing

GreenwashingCommon practice

Of 1,018 products studied99% greenwashed

--TerraChoice, environmental marketing

Greenwashing is a common practice according to Canadian environmental marketing company TerraChoice. In a 2007 study called “The six sins of greenwashing,” the company found that of 1,018 common consumer products, 99 percent were guilty of some form of greenwashing.

Page 74: Green Marketing

Greenwashing•May help short-term profit•Damages credibility•Makes green marketing harder

Companies greenwash to exploit market desire for environmentally responsible products and services. Although it can boost short-term profit, in the long run greenwashing damages the credibility and reputation of the company, just as any false claim would. Worse, Greenwashing also damages the credibility of companies with authentic green products and services to promote.

Page 75: Green Marketing

GreenwashingBack up claims•Facts & figures•3rd-party verifications

We can’t stop others from greenwashing. But we can make sure our own claims are supported by facts and figures such as test data and independent third-party verifications. Doing so helps restore and maintain market trust.

Page 76: Green Marketing

Green fatigue•Too much Green•Can’t tell real from fake•Tunes out Green messages•Makes Green marketing harder

People bombarded with “Green” this and “Green” that can get tired of it all and just tune it out. Greenwashing is a major contributor to Green fatigue – eventually, you can’t tell real from fake and don’t care anyway. It’s another obstacle to promoting our legitimate green products and practices.

Page 77: Green Marketing

Fighting green fatigue•Solve problems•Meet customer needs•Are priced appropriately•Are Green

But Green Fatigue hasn’t kept Toyota from selling out of Priuses. In my research, I found that products and services that solve problems, meet customer needs, are appropriately priced, and are environmentally responsible have been shown time after time to find their markets --

Page 78: Green Marketing

Green marketing

--as long as we can get the word out about them! Getting the word out about our green products and practices is what Green Marketing is all about.

Page 79: Green Marketing

Green marketing,

construction and how we

standto benefit

I hope that was helpful! Thank you for your time and attention.